Reconstruction of the role internal auditors in preventing fraud in the regional government: case study inspectorate of Malang City
DOI:
https://doi.org/10.20525/ijrbs.v13i4.3296Keywords:
Fraud, Internal Auditor, Government, Inspectorate, Malang CityAbstract
This study aims to explain the practice of fraud prevention by internal auditors of the local government of Malang City. The research method used is critical ethnomethodology in the local government environment of Malang City. Seven informants served as key informants. The results showed that the internal auditors of the local government of Malang City have not been able to carry out their role optimally, due to the weak legitimacy of internal auditors, community involvement in fraud prevention programs, and partial fraud prevention activities. As a result, the research findings provide an overview of the regional inspectorate's institutional integration with elements authorized to handle fraud cases, such as BPKP and BPK. The findings of this study suggest that the Malang City Inspectorate should gain legitimacy through regulations, government support, and effective and efficient consultation to identify and prevent fraud.
Downloads
References
ACFE. (2016). Report To the Nations on Occupational Fraud and Abuse: 2016 Global Fraud Study. Association of Certified Fraud Examiners, 1–92.
Aksa, A. F. (2018). Pencegahan dan Deteksi Kasus Korupsi pada Sektor Publik dengan Fraud Triangle. Jurnal Ekonomi, Bisnis, Dan Akuntansi (JEBA), 20(4), 1–17.
Albrecht, S., Albrecht, C., Albrecht, C., & Zimbelman, M. (2014). Fraud Examination (5th ed.). Cengage Learning Nelson Education, Ltd.
Cressey, D. R. (1950). The Criminal Violation of Financial Trust. American Sociological Review, 15(6), 738–743. https://doi.org/https://doi.org/10.2307/2086606 DOI: https://doi.org/10.2307/2086606
Creswell, J. (2015). Penelitian Kualitatif dan Desain Riset. Pustaka Belajar, Yogyakarta.
Gamar, N., & Djamhuri, A. (2015). Auditor Internal sebagai “Dokter” Fraud di Pemerintah Daerah. Jurnal Akuntansi Multiparadigma, 107–123. https://doi.org/10.18202/jamal.2015.04.009 DOI: https://doi.org/10.18202/jamal.2015.04.009
Garfinkel, H. (1967). Studies in Ethnomethodology. NJ: Prentice-Hall.
Ghazali, M. Z., Rahim, M. S., Ali, A., & Abidin, S. (2014). A Preliminary Study on Fraud Prevention and Detection at the State and Local Government Entities in Malaysia. Procedia - Social and Behavioral Sciences, 164(August), 437–444. DOI: https://doi.org/10.1016/j.sbspro.2014.11.100
Horwath, C. (2012). Putting the Freud in Fraud: Why the Fraud Triangle is No Longer Enough. Crowe Horwath, New York, NY.
Irianto, G., & Novianti, N. (2019). Dealing with Fraud. Universitas Brawijaya Press.
Irianto, G., Novianti, N., Rosalina, K., & Firmanto, Y. (2012). Integrity, Unethical Behavior, and Tendency of Fraud. EKUITAS (Jurnal Ekonomi Dan Keuangan), 16(2), 144. https://doi.org/10.24034/j25485024.y2012.v16.i2.2320 DOI: https://doi.org/10.24034/j25485024.y2012.v16.i2.2320
Katharina, R. (2017). Peran Inspektorat Daerah Dalam Pemberantasan Korupsi. Pusat Penelitian Badan Keahlian DPR RI, IX(18), 201.
Malangkota.go.id. (2020). Kali kesembilan, kota Malang raih gelar WTP. https://malangkota.go.id/tag/opini-wtp/
Nusantara, A. F. P., Irianto, G., & Prihatiningtias, Y. W. (2020). Fraud prevention and detection practices in the perspective of Jember Regency internal auditor. International Journal of Research in Business and Social Science (2147- 4478), 9(4), 377–384. https://doi.org/10.20525/ijrbs.v9i4.775 DOI: https://doi.org/10.20525/ijrbs.v9i4.775
Othman, R., Aris, N. A., Mardziyah, A., Zainan, N., & Amin, N. M. (2015). Fraud Detection and Prevention Methods in the Malaysian Public Sector: Accountants’ and Internal Auditors’ Perceptions. Procedia Economics and Finance, 28(April), 59–67. DOI: https://doi.org/10.1016/S2212-5671(15)01082-5
Perry, L. M., & Bryan, B. J. (1997). Heightened responsibilities of the internal auditor in the detection of fraud. Managerial Finance, 23(12), 38–43. https://doi.org/10.1108/eb018660 DOI: https://doi.org/10.1108/eb018660
Petra?cu, D., & Tieanu, A. (2014). The Role of Internal Audit in Fraud Prevention and Detection. Procedia Economics and Finance, 16(May), 489–497. https://doi.org/10.1016/s2212-5671(14)00829-6 DOI: https://doi.org/10.1016/S2212-5671(14)00829-6
Pitt, S.-A. (2014). Internal Audit Quality; Developing Quality Assuranceand Improvement Program. Jhon Wiley & Sons, Inc. DOI: https://doi.org/10.1002/9781118777213
Prasetyono, P. (2019). Munich Personal RePEc Archive Analysing decentralisation and corruption in Indonesia?: a fraud triangle approach. Fiscal Policy Agency, Ministry of Finance, Indonesia, 97722.
Ramadhani, A. R., Triyuwono, I., & Purwanti, L. (2019). Mengungkap Cara Melakukan Praktik Fraud di Pemerintah Kota Malang. Riset Akuntansi Dan Keuangan Indonesia, 4(1), 53–66. https://doi.org/10.23917/reaksi.v4i1.7311 DOI: https://doi.org/10.23917/reaksi.v4i1.7311
Rustendi, T. (2017). Peran audit internal dalam memerangi korupsi. Jurnal Akuntansi, 12(2), 111–126. DOI: https://doi.org/10.37058/jak.v12i2.384
Salleh, K., & Ahmad, M. Y. (2015). Fraud profile and fraud prevention in public sector: Internal audit perspective. International Conference on Accounting Studies (ICAS), August, 2–3.
Sulastri, S. (2014). Fraud Pada Sektor Pemerintah Berdasarkan Faktor Keadilan Kompensasi, Sistem Pengendalian Internal, Dan Etika Organisasi Pemerintah (Studi Empiris Dinas Pemerintah Provinsi DKI Jakarta). Jurnal Magister Akuntansi Trisakti, 1(2), 199. https://doi.org/10.25105/jmat.v1i2.4938 DOI: https://doi.org/10.25105/jmat.v1i2.4938
Sutrisno. (2013). Perlunya Pre-Audit (Pencegahan) Untuk Mengurangi Tingkat Kesalahan Penganggaran/Pengelolaan Suatu Kegiatan Pada Instansi Pemerintahan. Jurnal STIE Semarang, 4(2), 87–96.
Undang Undang Republik Indonesia. (1985). Undang Undang Republik Indonesia Nomor 28 Tahun 1999 Tentang Penyelenggara Negara yang Bersih dan Bebas dari Korupsi, Kolusi dan Nepotisme. Peraturan Pemerintah Republik Indonesia Nomor 26 Tahun 1985 Tentang Jalan, 1, 1–5.
Undang Undang Republik Indonesia. (2004). Undang-undang Nomor 15 Tahun 2004 Pasal 16 Ayat (1), tentang Pemeriksaan Pengelolaan dan Tanggung Jawab Keuangan Negara.
Undang Undang Republik Indonesia. (2008). Permenpan Nomor: PER/220/M/PAN/7/2008 tentang Jabatan Fungsional Auditor dan Angka Kreditnya.
Wolfe, DT & Hermanson, DR 2004, 'the fraud diamond: considering the four elements of raud', The CPA Journal. 72(12), 38-42.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Ahmad Rizki Mubarak, Gugus Irianto, Wuryan Andayani
This work is licensed under a Creative Commons Attribution 4.0 International License.
For all articles published in IJRBS, copyright is retained by the authors. Articles are licensed under an open access Creative Commons CC BY 4.0 license, meaning that anyone may download and read the paper for free. In addition, the article may be reused and quoted provided that the original published version is cited. These conditions allow for maximum use and exposure of the work, while ensuring that the authors receive proper credit.
