scholarly journals CAN THE INTERNAL CONTROL SYSTEM REDUCE FRAUDULENT USE OF VILLAGE FUNDS IN ADVERSE SELECTION CONDITION?

2019 ◽  
Vol 5 (1) ◽  
pp. 37
Author(s):  
Theresia Febiengry Sitanala
Keyword(s):  
Control System ◽  
Information Asymmetry ◽  
Adverse Selection ◽  
Internal Control ◽  
The Public ◽  
Agency Conflict ◽  
Village Level ◽  
Analysis Technique ◽  
Internal Control System ◽  
The Village

In recent years, corruption cases at the village level have been in the public spotlight. This was evidenced through around 154 corruption cases at the village level involving 112 village heads, 32 village officials and 3 village heads. This corruption case resulted in the state experiencing a loss of 47.56 billion rupiah during 2015-2017. This case is carried out through various modes such as the practice of budget abuse, fictitious reports, fictitious activities/projects, and budget bubbles. These various modes occur because the internal control system is ineffective, so it provides an opportunity for actors to act opportunistically. The goal is to maximize his personal interests as agents rather than the interests of the community as principals. This opportunistic behavior is caused by the existence of information asymmetry. Information asymmetry creates conditions for obtaining information that is not aligned between the village head as an agent and the community as the principal, so that the emergence of adverse selection. This study aims to examine the effect of the internal control system on fraudulent use of village funds in agency conflict conditions through adverse selection. This study used the laboratory experiment method with the subject being Accounting Student at Pattimura University Ambon. The data analysis technique uses Two-Way ANOVA with a 2x2 factorial experimental design. The results of the study show that (1) adverse selection conditions affect the relationship between the internal control system and fraudulent use of village funds, (2) the internal control system that does not effectively affect fraudulent use of village funds under adverse selection is compared to no adverse selection (3 ) adverse selection conditions do not affect fraudulent use of village funds when the internal control system is effective, and (4) in the absence of adverse selection, an effective internal control system will reduce fraudulent use of village funds compared to ineffective internal control systems.

scholarly journals The effect of religiosity and moderation of morality on fraud prevention in the management of village funds

2021 ◽  
Vol 11 (1) ◽  
pp. 105
Author(s):  
Nur Hayati ◽  
Ikklimatus Amalia
Keyword(s):  
Control System ◽  
Control Systems ◽  
Internal Control ◽  
Random Sampling ◽  
Survey Method ◽  
Fund Management ◽  
Fraud Prevention ◽  
Analysis Technique ◽  
Internal Control System ◽  
The Village

This study aims to determine the effect of village apparatus competence, internal control systems and religiosity on fraud prevention in the village fund management with morality as a moderating variable. This study uses a survey method with a questionnaire. The population consists of all village officials in Sidoarjo Regency. The sample was taken using a proportionate stratified random sampling, and finally 76 villages were obtained with the category of developed villages, developing villages, underdeveloped villages, and very underdeveloped villages. The data analysis technique used in this study is PLS-SEM using Smart-PLS 3.0 software. The results of this study prove that village apparatus competence has an effect on fraud prevention in village fund management, internal control system has no effect on fraud prevention in village fund management, and religiosity has an effect on fraud prevention in village fund management.Morality is not able to moderate the influence of village apparatus competence, internal control system and religiosity on fraud prevention.

THE INFLUENCE OF INTERNAL CONTROL SYSTEM EFFECTIVENESS, COMPENSATION COMPLIANCE, AND INFORMATION ASYMMETRY ON THE TENDENCY OF ACCOUNTING FRAUD (A CASE STUDY ON SEHATI CREDIT UNION)

2019 ◽  
Vol 24 (1) ◽  
pp. 23-35
Author(s):  
Amalia Nurul Hidayah ◽  
Misdiyono
Keyword(s):  
Control System ◽  
Information Asymmetry ◽  
Significant Influence ◽  
Internal Control ◽  
Secondary Data ◽  
Credit Union ◽  
Accounting Fraud ◽  
Internal Control System ◽  
System Compensation ◽  
System Effectiveness

A cooperative is a governmental organization established to enhance economic growth and national unity. As the development of the law on cooperatives, the present and developing institutions similar to Savings and Loan Union is called Credit Union. A cooperative is very vulnerable to the risk of loss. Insecurity is possible because of the tendency of accounting fraud. Some things that can affect the tendency of accounting fraud are internal control, compliance compensation, and information asymmetry. This research aims to determine whether there is any influence of internal control system effectiveness, compensation compliance, and information asymmetry on the tendency of accounting fraud. The research uses the quantitative method, and the research subject is Sehati Credit Union. The research data consist of primary and secondary data, especially the purposive sampling data which are collected from 36 respondents. Whereas, the data analysis technique uses multiple regression analysis using SPSS 21 software for Windows. The research concludes that the effectiveness of internal control system has a partially positive significant influence on the tendency of accounting fraud, compensation compliance has a partially negative significant influence on the tendency of accounting fraud, and information asymmetry has a partially positive significant influence on the tendency of accounting fraud. It means that the effectiveness of the internal control system, compensation compliance, and the information asymmetry have significant influences on the tendency of accounting fraud. Keywords: Internal Control System, Compensation Compliance, Information Asymmetry, Accounting Fraud.

scholarly journals دور نظام إحصاءات مالية الحكومة في تحسين كفاءة نظام الرقابة الداخلية في المؤسسات العامة

2018 ◽  
Vol 14 (1) ◽  
pp. 228-266
Author(s):  
د. بابكر ابراهيم الصديق محمد ◽  
د. عاصم إبراهيم محمد يوسف
Keyword(s):  
Control System ◽  
Internal Control ◽  
Wealth Distribution ◽  
Public Institution ◽  
Role Of Government ◽  
The Public ◽  
Internal Control System ◽  
Ministry Of Finance ◽  
The Government

This study focuses on the role of Government Financial Statistics Systems in developing the efficiency of Internal Control System. The statement of the problem presented that, Government Financial Statistics Systems have not been applied in the center and states. The researcher raised the following questions: Dose application of Government Financial Statistics Systems has an impact on the efficiency of Internal Control System. Is there any administrative constrains in the Ministry of Finance affecting the G.F.S, Do Internal Control System regulations established in the Ministry have an impact on the application of the Government Financial Statistics System? The importance of study is derived from the absence of scientific studies on the role of significance of Government Financial Statistics. The efficiency of organization is based on the strength and weakness of internal control system on the public institution. The study concluded with very important results that, centre and states accountants training on the Government Financial Statistics System will increase the efficiency of internal control system, and introducing the G.F.S as a syllabus in the universities will increase students’ capabilities when joining the employment, and the provision of computers will help the application of the Government Financial Statistics System. The Study recommended that, Government Financial Statistics System should be studied at Universities so that; students who are joining the service can easy understand their function. And application of F.F.S will help in transparency and wealth and wealth distribution.  

scholarly journals Pengaruh Sistem Pengendalian Intern Pemerintah dan Aksesbilitas Laporan Keuangan Terhadap Akuntabilitas Pengelolaan Keuangan Dana Desa

2019 ◽  
Vol 20 (2) ◽  
pp. 211-218
Author(s):  
Soni - Hermanto
Keyword(s):  
Control System ◽  
Linear Regression ◽  
Significant Influence ◽  
Internal Control ◽  
Financial Statements ◽  
Primary Data ◽  
Finance Management ◽  
Population Sampling ◽  
Internal Control System ◽  
The Village

The purpose of this research was to know the influence of internal control system and the accessibility of financial statements to accountability of village fund finance management in Merapi Timur Districts, Lahat Regency, South Sumatera. There are 13 vilalage in Merapi Timur Districts are population. Sampling in this study using saturated samples . The sample in this study was 65 people, they are the head of the village, the secretary of the village, the treasurer of the village, section head, and village consultative agency to each village in Merapi Timur District. The data was the primary data that was collected through questionnaires distributed to respondents. The data were analyzed by using multiple linear regression and supported by SPSS version 22. The results showed that partially internal control system have a positive significant effect on accountability of village fund finance management variable and the accessibility of financial statements variable have a positive significant effect on accountability of village fund finance management variable. While silmultan internal control system and the accessibility of financial statements  variable equally positive and significant influence on the accountability of village fund finance management in Merapi Timur Districts, Lahat Regency, South Sumatera

ANALISIS EFEKTIVITAS SISTEM PENGENDALIAN INTERNAL PENGGUNAAN DANA DESA

2020 ◽  
Vol 5 (2) ◽  
pp. 93
Author(s):  
Yulian Sahri
Keyword(s):  
Control System ◽  
Data Collection ◽  
Internal Control ◽  
Central Government ◽  
Qualitative Approach ◽  
The State ◽  
Internal Control System ◽  
Survey Results ◽  
Village Government ◽  
The Village

The enactment of Law No. 6, 2014 on Villages has given the opportunity for villages to manage their own finances. In 2017 the budget allocated by the central government amounted 720 million rupiahs per village. The central government needs to apply control and monitoring on the fund to ensure that there is no leakage and fraud in its spending. The survey results conducted by ICQ in 2016 show that there are 62 cases of corruption of the village fund already under investigation, with a total loss to the state reaching 18 billion rupiahs. One of the causes of the high number of fraud cases is the weak enforcement of internal control. The aim of this research is to analyze the effectiveness of Internal Control System (SPI) on the use of village fund at Kepayang village, Lempuing district, Ogan Komering Ilir Regency. This research uses a qualitative approach, the data collection for this research is conducted by means of interview, observation, and documentation. There are 4 participants in this research, namely Village Head, Village Secretary, Village Treasurer, and Kampong Society Representative Body. The internal control system in Kepayang village is running sufficiently well with a percentage of 65. This is because many of the components of control in the village government are not implemented.

scholarly journals Study on the effectiveness of internal control systems in Ghana public sector: a look into the district assemblies. Part 1

2019 ◽  
Vol 6 (3) ◽  
pp. 193-212
Author(s):  
Emmanuel Owusu-Ansah
Keyword(s):  
Control System ◽  
Public Sector ◽  
Control Systems ◽  
Internal Control ◽  
The Public ◽  
Internal Control System ◽  
Depth Study ◽  
The Government ◽  
Municipal Assembly ◽  
District Assemblies

Assessing the effectiveness of the internal control system in the public sector is one of the surest way to identify if public institutions are working effectively to achieve corporate objectives. The objective of the study is to assess the effectiveness of the internal control systems in the MMDA’S. The study made use of convenience and purposive sampling method to sample data. It was observed that there is an existence of internal control system in the Adenta Municipal Assembly and it is very effective in the achievement of the Assembly’s objectives. The Writer recommended that the government should employ more personnel who are members of the professional bodies such as the ICA Ghana, ACCA, and CIMA into the unit, this is because with their knowledge and in-depth study of their profession it will help to reduce the problems of internal control as highlighted in this work.

scholarly journals SISTEM PENGENDALIAN INTERNAL, FRAUD DIAMOND, DAN LARCENY SEBAGAI EFEK MEDIASI WHISTLEBLOWINGSYSTEM (STUDI PADA BPK RI)

2017 ◽  
Vol 11 (1) ◽  
pp. 99-130
Author(s):  
Krystella Krystella ◽  
Tigor Sitorus
Keyword(s):  
Control System ◽  
Significant Influence ◽  
Internal Control ◽  
Structural Equation ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Test Results ◽  
System Variable ◽  
Analysis Technique ◽  
Internal Control System

This research is aim to determine the effect of internal control system, fraud diamond, and whistleblowingsystem on larceny at BPK RI. Research data was obtained through questionnaires distributed torespondent, the employees in the work unit of General Bureau, IT Bureau, Human Resources Bureau and Leaders Secretariat Bureau BPK RI. So as many as 105 samples collected. This research used quantitative analysis technique with Structural Equation Modeling (SEM) processed with Amos 23. The test results showed : 1) Internal control system variable has  positive and significant influence on whistleblowingsystem, 2) fraud diamond variable has not significant influence on whistleblowingsystem, 3) whistleblowingsystem variable has negative and significant influence on larceny, 4) internal control system variable has not significant influence on larceny, 5) fraud diamond variable has positive and significant influence on larceny. Therefore, the whistleblowingsystem mediation effect of the internal control system influence on larceny is perfectly significant. While the effect of fraud diamond on larceny is not proven to mediate.

scholarly journals Pengaruh Sistem Pengendalian Intern Pemerintah (SPIP) Terhadap Pencegahan Fraud dalam Pengelolaan Dana Desa dengan Akuntabilitas Sebagai Variabel Mediasi

2020 ◽  
Vol 10 (2) ◽  
pp. 160
Author(s):  
Sri Ayem ◽  
Kirana Feby Kusumasari
Keyword(s):  
Control System ◽  
Control Systems ◽  
Internal Control ◽  
General Staff ◽  
Analysis Techniques ◽  
Internal Control System ◽  
Regression Techniques ◽  
The Government ◽  
The Village ◽  
Program Version

This study aims to determine the effect of internal control systems for fraud with accountability as a mediation variable.This study took samples in Ngaglik and Ngemplak sub-districts. Data collection is done directly by using questionnaires. The population in this study is the head of the village or PJ Kadus, the financial section of financial vows or financial staff and some of the Secretary and General Staff. From the survey spread obtained 30 samples. The data analysis techniques in this study used double linear regression techniques and the moderated regression analysis with the help of SPSS (Statistic Package for Social Science) program version 18.0. The results showed that the government internal control system was influential about accountability while the government's internal control system had no effect on Fraud and the government's internal control system had no effect on fraud with accountability as a mediation variable.

scholarly journals PENGARUH EFEKTIVITAS PENGENDALIAN INTERN, ASIMETRI INFORMASI DAN KESESUAIAN KOMPENSASI TERHADAP KECENDERUNGAN KECURANGAN AKUNTANSI (Studi Empiris Kantor Pusat Bank Perkreditan Rakyat Di Kota dan Kabupaten Malang)

2019 ◽  
Vol 13 (1) ◽  
pp. 11
Author(s):  
Restu Putri Pamungkas ◽  
Istutik Istutik
Keyword(s):  
Control System ◽  
Information Asymmetry ◽  
Financial Reporting ◽  
Internal Control ◽  
Profit Sharing ◽  
Islamic Banks ◽  
Accounting Fraud ◽  
Internal Control System ◽  
Information And Communication ◽  
Study Offer

The research aims to examine the effect of the effectiveness of internal control on trends in accounting fraud, examine the effect of information asymmetry on trends in accounting fraud, examine the effect of compensation appropriateness on accounting fraud trends. Qualitative research was carried out through in-depth surveys and interviews with the management of Islamic banks in Malang, customers, and academics about the need for an internal control system that is in accordance with the characteristics of Islamic banks. The development of an internal control system using the COSO (Committee of Sponsoring Organizations of The Treadway Commissions) framework was adopted and adapted to the characteristics of Islamic banks. The results of the study offer a model of an Islamic bank's internal control system through five components of the COSO, namely (1) the control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring that will benefit banks sharia to achieve strategic and operational goals, accuracy of financial reporting, and compliance with applicable policies and laws. Thus it will be able to help eliminate risks so that the performance of profit-sharing based financing can also be improved

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