Factors affecting the government procurement fraud: The independent auditor’s point of view.

Abstract

The objective of this study was examining the factors affecting the government procurement fraud. Based on the fraud triangle and the theory of planned behavior, this study proposed seven hypothesis, those are tested by regression analysis. This study used primary data gathered by surveys to members of The Boards of the Republic Indonesia- Financial Auditors, who act as external auditors for the Government. They were asked to assess factors influencing the government procurement of goods and services fraud. There were 297 auditors of the Boards that participated in this survey. The result showed that the procurement frauds were influenced by the lack of procurement committee quality, the weakness of procurement control, and the intentions to engage fraud. The intentions to engage fraud were significantly influenced by the attitude toward fraud, subjective norms, and the perceived behavioral control. Furthermore, other elements of fraud triangle, the financial pressure, did not influence to the procurement fraud.

Malaysian Government Officials Induced in Public Procurement Fraud through the Lens of Fraud Diamond Analysis

“…A study by Said et al (2017) found that pressure does not influence employee fraud occurrence in the banking industry in Malaysia. In addition, Zulaikha et al (2016) discovered that financial pressure has no positive correlation with fraud conduct. Her reasoning for this conclusion is that financial incentives for procurement committees are highly regulated in Indonesia, making it difficult for the committee to commit fraud.…”

Personality Traits and Ethical Belief as Factors Influencing Fraud Intent Behaviour among Bank Employees in Ibadan, Nigeria.

“…Scholars and managers have also considered a number of other possible explanations for fraud; such as competitive economic environments, the organizational culture, and personal morals. Among these ethical belief factors stand out as most significant (Bezuidenhoud, 2014;Burnett, 2017;Manurung, Suhartadi, & Saefudin, 2015;Zulaikha & Hadiprajitno, 2016;Weber, Kurke, & Pentico, 2003). What regulates individuals' choices of appropriate behaviours, beliefs and thought towards others is what is regarded as ethics.…”