Antecedents of the Accountability in Indonesian Local Government Financial Reporting

Abdullah, Muhammad Ikbal; Sudirman, Sudirman; Masdar, Rahma; Din, Muhammad; Firman, Muhammad Fikram

doi:10.26668/businessreview/2022.v7i5.e709

Cited by 5 publications

(5 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This theory describes that individuals as recipients of messages can be more persuaded to act as whistleblowers by credible sources than those who are not credible. The results of this study confirm the research of Suh & Shim (2020) and Abdullah et al (2022). More passionate and proactive managerial efforts, such as setting a 'tone at the top' and implementing practical ethics training, are needed to develop a whistleblowing policy within an organization Suh & Shim (2020).…”

Section: Discussionsupporting

confidence: 76%

Argument Framing, Source Credibility, and Emotional Conditions: Effects on Accountants’ Whistleblowing Decision

Wulanditya¹,

Iqbal²,

Prihatiningtias³

et al. 2023

J. Professional Business Review

View full text Add to dashboard Cite

Purpose: This study compared the effect of argument framing (positive-negative), source credibility (high-low), and emotional conditions (good-bad) on accountants' decisions to report fraud. Theoretical framework: No research investigates cognitive and affective factors in influencing accountants' decisions to whistleblowing: (1) how an argument is framed, (2) what extent management and system demonstrate credibility, and (3) whether emotional conditions can distort these two factors. The study aimed at companies that want their employees to play a critical role in preventing fraud in the workplace. Design/methodology/approach: In eight between-subject experiments, accountants faced an ethical dilemma in making a whistleblowing decision that describes a situation from a combination of all three factors (e.g., positive argument framing, low source credibility, and good emotional conditions). The authors used the Mann-Withney U-test to examine differences in accountants' whistleblowing decisions as the dependent variable. Findings: The results show that argument framing, source credibility, and emotional conditions affect the accountant's whistleblowing decision. It has been empirically proven that positive argument framing increases accountants' consent to act more than negatively framed arguments. High management and system credibility also strengthen accountants rather than low credibility. Finally, good emotions can encourage accountants to act as whistleblowers, while bad emotions can prevent accountants from taking whistleblowing actions. Research, Practical & Social implications: This study reveals that cognitive and affective factors need to be considered by companies related to the successful implementation of anti-fraud policies and whistleblowing systems. Originality/value: This paper has implications for company management in understanding the factors that can strengthen or weaken the actions of employees to report fraud that occurs in the workplace.

show abstract

Section: Discussionsupporting

confidence: 76%

Argument Framing, Source Credibility, and Emotional Conditions: Effects on Accountants’ Whistleblowing Decision

Wulanditya¹,

Iqbal²,

Prihatiningtias³

et al. 2023

J. Professional Business Review

View full text Add to dashboard Cite

show abstract

“…They also state that the Beneish M-model can detect financial statements fraud better for companies associated with local audit firms as compared to international audit firms. Therefore, it is evident that F-score and M-score are reliable models to detect financial statements frauds, and those models are also implemented in this study (Abdullah et al, 2022).…”

Section: Fraud Reductionmentioning

confidence: 93%

The Effect of Audit Quality on Fraud Reduction: A Moderating Role of International Financial Reporting Standards (IFRS) Adoption in Malaysia and Indonesia

Khan

Nejad²,

Kassim³

2023

J. Professional Business Review

View full text Add to dashboard Cite

Purpose: This study examines the relationship between audit quality and fraud reduction as well as investigates the adoption of IFRS in developing countries which is Malaysia and Indonesia to provide a comparison between IFRS adopter (Malaysia) and non-adopter (Indonesia) countries in the relationship between audit quality and fraud reduction. Theoretical framework: This study applies two main theories; Policeman Theory and Institutional Theory. Design/methodology/approach: The research data covers listed companies in Malaysia and Indonesia. The total number of firms is 643 from the year 2015 to 2020 with 2502 total observations. Findings: The findings indicate that audit tenure, return on assets (ROA) and size have a significant and positive relationship in the reduction of fraud in Malaysia but audit fee, leverage and size have a significant and negative relationship in the reduction of fraud in Malaysia. Similarly, this study found that audit fee, leverage, return on assets (ROA) and audit tenure has a positive and significant relationship in the reduction of fraud in Indonesia. Besides, size have a negative and significant relationship in the reduction of fraud in Indonesia. This study also found that IFRS has a moderate effect on the relationship between audit fees and audit tenure towards fraud reduction in Malaysia and Indonesia. Research, Practical & Social implications: Future studies are encouraged to examine the effects of Sharia Compliance on the quality of audit processes and the reduction of fraud, especially in areas where Islamic finance is common. It is also suggested that future research should expand the statistical methods used beyond the Ordinary Least Squares (OLS) model to potentially include Logistic Regression Models (LRM). This could lead to a significant improvement in the accuracy and dependability of the research outcomes. Originality/value: The study provides valuable insights into the relationship between audit quality and fraud reduction, as well as the moderating effect of IFRS in Malaysia and Indonesia. The findings have significant practical implications for policymakers, companies, and auditors looking to improve the regulation of auditing practices and reduce the occurrence of fraud.

show abstract

“…Testing hypothesis 1 (H1), which states that System Information Local Government owns an influence positive and significant on Quality Report Finance Local Government can be accepted and proven right, where results proven from Output Path Coefficients and P values that describe presentation results estimate coefficient path (Path coefficient) and p value (Abdullah, 2022). From the results testing above, see mark Path coefficients influence System Information Local Government against Quality Report Finance Local Government is of 0.328 and significant at 0.001 more small of p<0.05 or 5%, so that the proposed hypothesis accepted.…”

Section: Composite Reliabilitymentioning

confidence: 99%

The Effect of Implementing Local Government Information System on the Quality of Local Government Financial Reports Moderated by Human Resource Competence

Naida,

Amir,

Din

et al. 2023

JWS

View full text Add to dashboard Cite

This study aims to measure the effect of implementing local government information systems on the quality of government financial reports with human resource competence as a moderating variable. The research was conducted using quantitative methods, and data collection was carried out using questionnaires and PLS with the help of WarpPLS software. The results of this research analysis show empirical evidence that the implementation of local government information systems on the quality of local government financial reports can have a positive effect; on the other hand, human resource competence can moderate the relationship between the application of local government information systems to the quality of local government financial reports. Studies This gets empirical proof about many matters related to quality report finance government area. System information government area own influence positive to quality report finances. Competence source Power man can strengthen influence connection between information systems government area to quality report finance government area.

show abstract

Antecedents of the Accountability in Indonesian Local Government Financial Reporting

Cited by 5 publications

References 12 publications

Argument Framing, Source Credibility, and Emotional Conditions: Effects on Accountants’ Whistleblowing Decision

Argument Framing, Source Credibility, and Emotional Conditions: Effects on Accountants’ Whistleblowing Decision

The Effect of Audit Quality on Fraud Reduction: A Moderating Role of International Financial Reporting Standards (IFRS) Adoption in Malaysia and Indonesia

The Effect of Implementing Local Government Information System on the Quality of Local Government Financial Reports Moderated by Human Resource Competence

Contact Info

Product

Resources

About