The role of auditor in whistleblower system: The cases in Indonesia

The purpose of this research is to test and explain the influence of village apparatus competence, individual morality, internal control system, and whistleblowing system on the prevention of village fund fraud. This research is quantitative research with a descriptive research design. Sources of data in this study using primary data obtained from the results of distributing questionnaires to village officials in Sumowono District, Central Java, Indonesia with 99 respondents. The results of this study indicate that the competence of village officials, individual morality, internal control systems, and whistleblowing systems simultaneously have a significant effect on the prevention of village fund fraud. Partially, the competence of village officials, individual morality, internal control systems, and whistleblowing systems have a positive effect on the prevention of village fund fraud.

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Village Apparatus Competence, Individual Morality, Internal Control System and Whistleblowing System on Village Fund Fraud

Wahyudi

Achmad

Pamungkas

2021

Wseas Transactions on Environment and Development

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How Does a Whistleblowing System Prevent Earnings Management? Insights from Corporate Governance Perspective

Giovani,

Anzib,

Arfan

2024

Indatu J. Manag. Account.

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The whistleblowing system (WBS) is a component of the internal control system that plays a crucial role in preventing irregularities and fraud, as well as reinforcing the implementation of good governance practices. Therefore, this study aims to examine the whistleblowing system's role in moderating the effect of corporate governance (institutional ownership, independent commissioners, and audit committees) on earnings management. The population of this study comprises 147 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period from 2017 to 2021. The sample was selected using simple random sampling, resulting in 60 companies per year and a total data observation of 300. Moderated Regression Analysis (MRA) was chosen as the analysis method, and the estimation results indicate that the whistleblowing system strengthens the negative effect of institutional ownership, independent commissioners, and audit committees on earnings management. These results demonstrate that with a whistleblowing system in place, governance functions more effectively in reducing earnings management compared to companies without such a system. This study contributes to the literature by illustrating that the whistleblowing system operates more optimally with the support of corporate governance. Policies are needed to enhance the relationship between corporate governance mechanisms and earnings management activities, with the whistleblowing system policy expected to enhance the effectiveness of functional governance and consequently reduce earnings management activities.

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The role of auditor in whistleblower system: The cases in Indonesia

Cited by 2 publications

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Village Apparatus Competence, Individual Morality, Internal Control System and Whistleblowing System on Village Fund Fraud

Village Apparatus Competence, Individual Morality, Internal Control System and Whistleblowing System on Village Fund Fraud

How Does a Whistleblowing System Prevent Earnings Management? Insights from Corporate Governance Perspective

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