Accounting Fraud Tendency on Village Credit Institution

I Gede Cahyadi Putra; Putu Wenny Saitri; I Gusti Bagus Ngurah Gunadi

doi:10.32535/ijafap.v2i2.538

Accounting Fraud Tendency on Village Credit Institution

I Gede Cahyadi Putra, Putu Wenny Saitri, I Gusti Bagus Ngurah Gunadi

Abstract

This study aims to examine the effect of suitability of compensation, information asymmetry, effectiveness of internal control, adherence to accounting rules, and the organization's ethical culture of accounting fraud. The research population of all village credit institution in Bangli is 159 with as many as 318 respondents. The results showed that information asymmetry had a positive effect, compliance with accounting rules had a negative effect, and conformity of compensation, effectiveness of internal controls and organizational ethics did not affect the tendency of accounting fraud. The results of the study show that information asymmetry is a factor causing fraud and this can be overcome by the obedience of accounting rules in the village credit institution.

Keywords: fraud, accounting, village credit institutions

Full Text:

PDF

References

Anthony, N Robert and Govindarajan, Vijay. (2005). Management Control System. Book 2. Jakarta: Salemba Empat Arifah, Anna, (2017). Effect of Accounting Rules Obedience, Effectiveness of Internal Control, Compliance Compensation, Procedural Justice, and Organizational Commitment to Accounting Fraud Trends, Study in State Universities in Special Region of Yogyakarta. Thesis. Faculty of Economics, State University. Yogyakarta. Chandra, Devia Prapnalia, (2015). Determination of the occurrence of Accounting Fraud Trends at Grobogan Regency Government Service. Thesis. State University. Semarang. Defiany Alou1, Shelby and Gamaliel, Hendrik, (2017). Effects of Compensation Compliance, Management Morality, and Effectiveness of Internal Control on Accounting Fraud Trends. Research Journal of Going Concern Accounting. Faculty of Economics and Business, Accounting Department, Sam Ratulangi University. Manado. 139-148. Ghozali, Imam. (2016). Application of Multivariate Analysis with IBM SPSS 23. Semarang: Diponegoro University Publishing Agency. Jensen, and W. H. Meckling, (1976). Theory of the Firm: Managerial behavior, agency costs and ownership structure. Journal of financial Economics, vol. 3: 305-360.

Kusumastuti, Nur Ratri.(2012). Analysis of Factors that Influence the Trends of Accounting Fraud and Unethical Behavior as Intervening Variables. Encryption. UNDIP Semarang Lia Arista, Lilik, (2015). Effect of Internal Factors on the Tendency of Accounting Fraud at PT. Pegadaian Persero Surakarta. Ejournal of the Faculty of Economics. Surakarta Islamic University of Batik. pp. 115-122. Lestari, (2015). The Effect of Internal Control and Organizational Ethical Culture on Trends in Fraud in Savings and Loans Cooperatives in Buleleng District. E-Journal of the University of Education Ganesha. Vol 3 No. 1. Mustika, Dian. (2016). Analysis of Factors Affecting Fraud Trends: Employee Perceptions at Way Kanan District of Lampung. XIX National Accounting Symposium. Lampung Najahningrum, Anik Fatun. (2013). Factors Affecting Fraud Trends: DIY Provincial Service Personnel Perception. Encryption. S1 UNNES FE. Parmawan, Sujana, and Purnamawat. (2017). Effects of Internal Control, Organizational Ethical Culture, Compensation Suitability, and Protection of Awig-Awig Against Fraud (Study of Village Credit Institutions in Kubutambahan). e-Journal, University of Education Ganesha. Vol : 8 No: 2. Rae and Subramaniam. (2008). Quality Of Internal Control Procedures Antecedents And Moderating Effect On Organizational Justice And Employee Fraud. Managerial Auditing Journal. Vol. 23 No. 2, 2008 pp. 104-124. Sugiyono. (2016). Business Research Methods (Quantitative, Qualitative and R & D Approaches). Bandung: Alfabeta. Triasmara, Mayangsari. (2014). Effect of Effectiveness of Internal Control, Suitability of Compensation and Information Asymmetry on Fraud Trends at PT Telekomunikasi Indonesia, Tbk. e-Proceeding of Management. Vol.1. No.3. Trisnawati, Eka Alis, (2015). The Effectiveness of the Internal Control System, Compliance with Accounting Rules, Information Asymmetry, and Compensation Compliance with Accounting Fraud Trends at Tulungagung Private Bank. Thesis. Faculty of Economics, Nusantara University Teacher Association of the Republic of Indonesia. Udayani, Anak Agung K. Finty and Ratna Sari, (2017). Effects of Internal Control and Individual Morality on Accounting Fraud Trends. E-Journal of Accounting. Udayana University Vol. 18. No.3. Virmayani, Crysma. (2017). Effect of Compensation Suitability, Information Asymmetry, Organizational Ethical Culture and Organizational Commitment to Trends in Accounting Fraud in Savings and Loan Cooperatives in Buleleng Sub-District. e-Journal, University of Education, Ganesha, Department of Accounting. Vol.7 No.1. Widyaswari, Yuniarta, and Edy Sujana. (2017). Effect of the Effectiveness of Internal Control, Suitability of Compensation, and Organizational Culture on Fraud Trends in Village Credit Institutions in Susut District. e-Journal S1, Ak University of Education Ganesha. Wilopo. (2006). Analysis of Factors Affecting Accounting Fraud Trends: Study of Public Companies and BUMD in Indonesia. National Accounting Symposium 9. Padang.

DOI: https://doi.org/10.32535/ijafap.v2i2.538