Analysis Of Accounting Fraud Tendencies At Village Credit Institutions In Gianyar Regency With Pentagon Fraud Approach

Abstract

Village credit institutions (Village Credit Institutions) in Bali serve as a container of wealth belonging to villages and villages in the form of money or other securities. It can be said that village credit institutions have an important role however, there are some cases of fraud that occur in village credit institutions in Bali that have a loss impact especially on the local village. Some research on fraud tendencies has been done but in this study will try to test the influence of accounting fraud tendencies seen from the Pentagon fraud and conducted at the village credit institution in Gianyar Regency. elements contained in the pentagon fraud: (1) Arrogance; (2) Competence/capability; (3) Leadership style (opportunity); (4) Locus of control (pressure); and (5) Rationalization. The population in this study at the village credit institute in Gianyar Regency with a sample of 75 respondents. From the test results using analysis methods PLS (Partial Least Square). obtained the result that the Effectiveness of Internal Control System has no effect on the tendency of accounting fraud in the Village Credit Institution Gianyar district and the effectiveness of technology-based Accounting Information System negatively affects the accounting fraud tendencies.

The Effect of Compensation Suitability, Situational Leadership Style, Effectiveness of the Supervisory Board and Tri Hita Karana Culture on The Tendency of Fraud in LPD

“…The object of this research is Fraud Tendency (Y) which is explained by Compensation Suitability (X1), Situational Leadership Style (X2), Effectiveness of Supervisory Board (X3), and Tri Hita Karana Culture (X4). The tendency of fraud is a deliberate detrimental action in order to obtain benefits or advantages by reporting financial statements that are not in accordance with actual conditions (Miati & Sutapa, 2021;Putra et al, 2019). The instrument used to measure the tendency to fraud consists of 15 statement items referring to SPAP section 316 (20018) using a 4 (four) point Likert scale.…”

“…The instrument used to measure the tendency to fraud consists of 15 statement items referring to SPAP section 316 (20018) using a 4 (four) point Likert scale. The indicators used are the tendency to manipulate, falsify, or change accounting records or supporting documents, the tendency to misrepresent or omit significant events, transactions, or information from the financial statements, the tendency to intentionally misapply accounting principles, the tendency to to misrepresent financial statements due to theft (misuse/ embezzlement) of assets that makes the entity pay for goods/services that it does not receive and a tendency to misrepresent financial statements due to improper treatment of assets and accompanied by false records or documents and may involve one or more individuals among management, employees or third parties (Miati & Sutapa, 2021;Putra et al, 2019).…”

Fraud Deterrence: The Management’s Intention In Using FCP

“…(ACFE, 2017, p. 41). Although the internal control system is ultimately the responsibility of management, everyone in the organization plays a role in helping to ensure that controls work effectively (Miati et al, 2021). It can be achieved if people understand and align with the goals of the organization.…”