The Influence of Hexagon Fraud Elements on Fraud Regional Financial Management Using the Internal Control System as a Moderation Variable in Regional Government in the Region of North Sumatra Province
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 07
Abstract
The findings of WDP opinions in several districts/cities in North Sumatra province indicate that there are one or more financial administrations that do not or have not met the standards of good financial management. Non-compliance with legislation will result in an increased tendency for fraud. With the spread of fraud cases, it is necessary to prevent and detect financial management fraud using the fraud hexagon theory. This research is a quantitative study which aims to analyze the influence of the fraud hexagon elements (pressure, opportunity, rationalization, capability, arrogance and collusion) on regional financial management fraud with the internal control system as a moderating variable. The population of this study was 34 Provincial/Regency/City Governments. Meanwhile, the number of samples was 7 Provincial/Regency/City governments. Then, 3 OPDs (Regional Apparatus Organizations) related to regional financial management were taken from each sample, namely Bappeda as OPD for regional financial planning, Regional Financial and Asset Agency as OPD for budgeting, implementation, administration, reporting and regional financial accountability, and Provincial/Regency/City Inspectorate as OPD for internal supervision of regional finance. In each OPD, 5 Regional Financial Management officials were taken, so that the total number of observations was 105 respondents. The analysis technique used is Partial Least Square (PLS), which is a component or variantbased Structural Equation Model (SEM). The results of data research prove that pressure has a significant effect on fraud. Opportunity has a significant effect on fraud. Rationalization has a significant effect on fraud. Capability has a significant effect on fraud. Arrogance has a significant effect on fraud and collusion has a significant effect on fraud. Meanwhile, the results of the moderation test show that the internal control system is unable to moderate the influence of the fraud hexagon elements (pressure, opportunity, rationalization, capability, arrogance and collusion) on regional financial management fraud.
Authors and Affiliations
Devi Marny Agustina Simanjuntak, Fahmi Natigor Nasution, Rujiman .
Keywords
Related Articles
- EP ID EP740178
- DOI 10.47191/ijcsrr/V7-i7-26
- Views 50
- Downloads 0
Implementation Strategy “3R CIRCULAR ECONOMY” To Achieve SDG Target 11.6 “Municipal Waste Management” In Cipaganti Village, Bandung City (Study at the Cihampelas Mandiri Unit Garbage Bank)
Good municipal waste management is very important for a sustainable urban order. Good municipal waste management can reduce negative impacts on the environment, public health and natural resources. The application of a G...
The Analysis of Knowledge to the Skill of Health Cadres in Carrying Out the Early Detection of Pneumonia in Sick Children in the Working Area of Public Health Centre, Belimbing Padang City
Under-five year children death in Indonesia due to pneumonia are 32 per 1000 live birth. Data in 2018 in West Sumatra, the prevalence of ISPA was 5%, pneumonia rose to 2.5%, in the city of Padang in 2018, the number...
Grid Search Optimized Machine Learning based Modeling of CO2 Emissions Prediction from Cars for Sustainable Environment
Carbon emissions have increased dramatically because of industrialization, trapping heat in the atmosphere and hastening climate change. This is a serious threat to the wealth, security, and well-being of the world. The...
Use of Digital Technologies: Family Perspectives on Children's Health
The increasing use of digital technologies among children and adolescents prompts concerns about their impact on development and necessitates family mediation. This study explored primary caregivers’ views on the effects...
Students’ Perception of The Implementation of Running Dictation in Teaching Reading
This study examines students’ perceptions of using Running Dictation as a teaching strategy in reading applied by the teacher in the seventh grade of Junior High School in Bandar Lampung. A descriptive quantitative appro...