EFFECT OF AUDIT COMMITTEE, INTERNAL CONTROL, ORGANIZATION COMMITMENT, WHISTLEBLOWING SYSTEM, ON FRAUD ACTIONS: GOOD CORPORATE GOVERNANCE AND FRAUD TRIANGLE AS INTERVENING
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Date
2019
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Journal of Advanced Research in Dynamical & Control Systems, Vol.11, Issue 3
Abstract
Fraud in this study is an urgent problem. Many of the world leading organizations have experienced massive fraud. This deception has a disruptive effect on the world economy and results in suffering and an increase in unemployment for low and middle class people. The purpose of this study is to explore the influence of the Audit Committee, Internal Control, Organization Commitment, Whistleblowing System, Good Corporate Governance, and the Fraud Triangle on fraud in companies listed on IDX. This research is important to assist anti-corruption agencies and organizations in formulating practical strategies to prevent and investigate organizational fraud. This is related to various forms and causes of fraud. This study develops and tests theoretical models that identify the number of factors and their roles which contribute directly and indirectly to Fraud, namely the Audit Committee, Internal Control, Organization Commitment, Whistleblowing System, Good Corporate Governance, and the Fraud Triangle that can affect the occurrence of fraud. This research was conducted on 106 respondents from 31 companies listed on IDX. The data used in this study are primary data collected through questionnaires. Data validity and reliability were tested before hypothesis testing. Data analysis for hypothesis testing is SEM analysis. This study formulates the fact that the Audit Committee, Internal Control, Organization Commitment, Whistleblowing System, Good Corporate Governance, and Fraud Triangle had a significant effect both partially and simultaneously on the occurrence of fraud by 64% in sample companies listed on IDX.
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Keywords
Fraud, Audit Committee, Internal Control, Organization Commitment, Whistleblowing System, Good Corporate Governance, Fraud Triangle