Abstract :

This study aims to evaluate the effectiveness of the implementation of the Internal Control System (ICS) in financial management and Government Regulation (PP) No. 06 of 2008 as a fraud prevention measure. This study employs a qualitative descriptive approach. Primary data were gathered through questionnaire about internal control system, completed by relevant officials, which where supplemented by additional insights obtained from interviews.

Meanwhile, secondary data were sourced from the Summary of Audit Results (IHPD) for the East Nusa Tenggara Province. Given the paucity of research on internal control-based auditing in the government sector and the rising instances of corruption in public financial accountability and operations, it is critical to delve deeper into this issue to investigate the effectiveness of internal controls in preventing fraud within the government. This study identifies the causes of compliance findings in the Financial Statements of the Regional Government of Kupang City for the 2023 Fiscal Year, analyzed them in relation to the effectiveness of the Internal Control System (ICS). The findings reveal that ineffective implementation of internal control is a significant factor contributing to compliance violations of regulations, which result in state or regional losses that require recovery.

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Keywords :

Accounting Fraud, Accounting Public Sector, COSO Framework, Fraud Prevention, Internal Control System (ICS)

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