Reporting Fraud: An Examination of the Bystander Effect and Evidence Strength

Brink, Alisa G.; Eller, C. Kevin; Gan, Huiqi

doi:10.1108/s1475-148820150000018004

Cited by 15 publications

(12 citation statements)

References 45 publications

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“…The individuals do not want to help other who are in an emergency (Latané and Darley, 1970). Individuals are late in reacting and only to observe the events (Brink and Gan, 2015). In accounting fraud, individuals who know that fraud has occurred tend to ignore, choose to silent, or do not want to be involved in the case (Sarwono and Meinarno, 2009).…”

Section: Bystander Effect and Accounting Fraudmentioning

confidence: 99%

“…Managers tend not to report these incidents because they interfere with work, even endanger their position or position in the workplace. Most previous studies stated that the bystander effect reduces an individual's intention to disclose fraud (whistleblowing) (Brink and Gan, 2015;Asiah, 2017). The higher the bystander effect phenomenon, the higher the potential for fraud in the organization.…”

Section: Bystander Effect and Accounting Fraudmentioning

confidence: 99%

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Do Individual Characteristics and Bystander Effect Increase the Accounting Fraud?

Noviyanti

Rustiarini

Dewi

2021

juara

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Penelitian ini bertujuan untuk mengkaji pengaruh karakteristik individu dan fenomena bystander effect terhadap kemungkinan terjadinya kecurangan. Karakteristik individu ditinjau dari moralitas dan sifat kepribadian Machiavellian. Penelitian ini merupakan penelitian survei. Kuesioner diberikan kepada 256 pengelola Lembaga Perkreditan Desa (LPD) di Kabupaten Bangli. Data dianalisis menggunakan regresi linear berganda. Hasil pengujian empiris mengungkapkan bahwa hanya variabel moralitas dan bystander effect yang meningkatkan kecenderungan kecurangan akuntansi. Variabel sifat Machiavellian tidak berpengaruh terhadap kecenderungan kecurangan akuntansi. Secara praktis, hasil penelitian ini mengonfirmasi peran karakteristik individu dan bystander effect terhadap kecenderungan terjadinya kecurangan akuntansi, khususnya pada organisasi keuangan LPD. Temuan ini sekaligus memberi bukti empiris kepada pimpinan LPD untuk mempertimbangkan karakteristik individu dalam memposisikan individu pada jabatan terkait pengelolaan keuangan LPD.

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Section: Bystander Effect and Accounting Fraudmentioning

confidence: 99%

Section: Bystander Effect and Accounting Fraudmentioning

confidence: 99%

Do Individual Characteristics and Bystander Effect Increase the Accounting Fraud?

Noviyanti

Rustiarini

Dewi

2021

juara

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“…The higher the bystander effect, the higher the tendency for accounting fraud [7], [8], [8], [9] Other studies have shown that, when there is strong evidence suggesting the existence of fraudulent acts, individuals with their own knowledge are more likely to report than when others are aware of fraudulent acts (bystander effect). However, the bystander effect was not found when the evidence of fraud was weak [1]. On the other hand, the results of research by [9], [10], show that the bystander effect does not have a significant effect on the tendency of accounting fraud.…”

Section: Introductionmentioning

confidence: 91%

“…Fraud is a social and economic problem that poses a very serious and expensive threat to businesses around the world [1], because it can involve various stakeholders in the company, from top managers, shareholders, employees, suppliers, to auditors [2]. Thus, the role of audit and internal control is needed in the prevention and detection of fraud [3].…”

Section: Introductionmentioning

confidence: 99%

The Influence of the Bystander Effect and Internal Control on the Trend of Accounting Fraud at Village Credit Institutions in Jembrana Regency

Yasa¹,

Sukayasa²,

Utami³

2022

Proceedings of the International Conference on Applied Science and Technology on Social Science 2022 (iCAST-SS 2022)

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Financial statement fraud or accounting fraud is any intentional act or omission that results in materially misleading financial statements. Previous research has shown that variables that influence the tendency of accounting fraud, such as the bystander effect and internal control. This study aims to examine and explain the effect of the bystander effect and internal control on the tendency of accounting fraud. The research was conducted at the Village Credit Institution (LPD) in Jembrana Regency, with the respondents being managers and employees working at the LPD. Data were collected using a questionnaire and analyzed using variant-based SEM and processed using Partial Least Square (PLS).The results of the study found a bystander effect, and internal control had a significant effect on the tendency of accounting fraud.

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“…The higher the bystander effect, the higher the tendency for accounting fraud (Noviyanti et al, 2021) (Redini & Indraswarawati, 2021) (Asiah & Setyorini, 2017). However, the bystander effect was not found when the evidence of fraud was weak (Brink et al, 2015). The bystander effect has no significant effect on the tendency of accounting fraud (Asia & Setyorini, 2017) (Masdiantini et al, 2021).…”

Section: Empirical Review and Hypothesis Developmentmentioning

confidence: 99%

Organizational culture moderates the effect of bystander effect and internal control on accounting fraud trends in village credit institutions in Jembrana Regency

Yasa

Sukayasa

Utami

2022

IJRBS

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This study aims to examine and explain organizational culture's role in moderating the bystander effect and internal control effect on the tendency of accounting fraud. The research was conducted on The Village Credit Institution in Jembrana Regency, with the respondents being managers and employees who worked at the Village Credit Institution. Data were collected using a questionnaire, analyzed using variant-based SEM, and processed using Partial Least Square (PLS). The study's results found that the bystander effect and internal control significantly affected the tendency of accounting fraud. Organizational culture can moderate the bystander effect's influence and internal control on the tendency of accounting fraud. The results of this study are expected to provide a systematic overview to The Village Credit Institution management in the future regarding the influence of the bystander effect and the weakness of internal controls on the occurrence of accounting fraud. Through the results of this study, the Village Credit Institution Supervisory and Management Agency is expected to eliminate the influence of bystanders, streamline the internal control system, and through a positive organizational culture, encourage the emergence of whistleblowers as an effort to prevent fraud. Keywords: accounting fraud tendency, bystander effect, internal control, organizational culture.

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Reporting Fraud: An Examination of the Bystander Effect and Evidence Strength

Cited by 15 publications

References 45 publications

Do Individual Characteristics and Bystander Effect Increase the Accounting Fraud?

Do Individual Characteristics and Bystander Effect Increase the Accounting Fraud?

The Influence of the Bystander Effect and Internal Control on the Trend of Accounting Fraud at Village Credit Institutions in Jembrana Regency

Organizational culture moderates the effect of bystander effect and internal control on accounting fraud trends in village credit institutions in Jembrana Regency

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