Financial Assessment of A Credit Union In West Timor, Indonesia

The implementation of todays forest management that based on formal-scientific knowledge and technical knowledge seems to fail to protect the forest from deforestation and the environmental damage. Decolonialisation of western knowledge could give an opportunity to identify and find the knowledge and practices of indigenous people in sustainable forest management. Forest management based on the indigenous knowledge and practices is believed easy to be accepted by the indigenous community due to the knowledge and practice is known and ‘lived’ by them. The Atoni Pah Meto from West Timor has their own customary law in forest management that is knows as Bunuk. In the installation of Bunuk, there is a concencus among the community members to protect and preserve the forest through the vow to the supreme one, the ruler of the earth and the ancestors, thus, bunuk is becoming a le’u (sacred). Thus, the Atoni Meto will not break the bunuk due to the secredness. Adapting the bunuk to the modern forest management in the Atoni Meto areas could be one of the best options in protecting and preserving the forest.

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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)

Journal of Business Economics ◽

10.35760/eb.2019.v24i1.1853 ◽

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.

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