Journal of Administrative and Business Studies
Details
Journal ISSN: 2414-309X
Journal DOI: 10.20474
Artical DOI: https://doi.org/10.20474/jabs-2.3.5
Received: 21 October 2015
Accepted: 16 December 2015
Published: 26 April 2016
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  • The influence of internal audit and internal control on fraud prevention in Bandung regency government

Ony Widilestariningtyas, Rio Sempana Karo Karo

Published online: 2016

Abstract

This research is conducted in Bandung regency government. The phenomenon that occurs is the case of internal control weaknesses, such as accounting and reporting control weaknesses, as well as cases of weakness of internal control structure. The existence of such fraud is non-compliant with the regulations resulting in a loss of area and the surrender value of assets or deposit cash into countries/regions. The research objectives are to determine how big the influence of internal audit is on fraud prevention and internal control on fraud prevention in District of Bandung Government. The methods used in this research are descriptive and verification method. Descriptive method is used to determine the variable picture of internal audit, internal control variables and variables of fraud prevention. To determine the effect of internal audit and internal control statistical tests were performed. The test statistic used is designing the structural model, designing a measurement model, construct the path diagram and test the model fit. Suitability test structural models and hypotheses were tested using software SmartPLS 2.0.M3.The result of this research reveals the coefficient of correlation between internal audit on fraud prevention is 0.422. The internal audit influence on fraud prevention in District of Bandung Government in percentage is 8.566%. The rest of it with a value of 91.434% is influenced by other factors unobserved in this research. The correlation coefficient between internal control on fraud prevention in District of Bandung Government is about 27.878%. The rest of it with a value of 72.122% is influenced by other factors unobserved in this research.