Can Good Corporate Governance Moderates The Influence of Internal Control and Integrity towards Fraud Prevention?

Syifa Nurul Maulani; Putri Syifa Amalia; M. Nur A. Birton

doi:10.21070/jas.v8i1.1731

(1) * Syifa Nurul Maulani
Indonesia
(2) Putri Syifa Amalia Institut Agama Islam Tazkia
Indonesia
(3) M. Nur A. Birton Magister Akuntansi Universitas Muhammadiyah Jakarta
Indonesia
(*) Corresponding Author

DOI: https://doi.org/10.21070/jas.v8i1.1731

Abstract

This research examines the influence of internal control and integrity of internal auditor towards fraud prevention. Good Corporate Governance (GCG) in this research is a variable that strengthen or weaken factors that affect fraud prevention. This research used quantitative methods with the data used is primary data through questionnaires distributed to internal auditors at Islamic Banks in Indonesia. Samples were taken using stratified random sampling method. Multiple linier regression analysis used SEM and SMARTPLS as the tools. The result of this research explains that internal control has a positive effect and significant to fraud prevention. GCG in moderating internal control and integrity of internal auditor has no significant effect to fraud prevention. Practical implication of this research is for strengthening internal control mechanism, importance of internal auditors’ integrity, and understanding the moderation role of GCG. The limitation of this research is that the research was only conducted on internal auditors so that it may not fully describe fraud prevention. The number of samples taken may also be another factor that affects the limitations of this study.

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