Articles

Transparency as an Instrument for Fraud Prevention in the Digital Business Ecosystem

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Digital transformation has reshaped the global business landscape, increasing efficiency while also giving rise to new risks in the form of digital fraud. This research aims to analyze the role of transparency as a strategic instrument in preventing fraud in the Indonesian digital business ecosystem. Using a qualitative multiple case study approach, data was collected through interviews, observations, and analysis of policy documents from technology-based companies. The results show that transparency significantly contributes to increased accountability and the effectiveness of internal controls. The implementation of digital audit systems, real-time monitoring, and blockchain technology has proven to reduce information asymmetry and the opportunities for fraud. However, its effectiveness is still influenced by institutional factors, digital ethics, and collaboration among regulators. Therefore, further research is recommended to develop a quantitative model that measures the impact of transparency on reducing fraud risk longitudinally across various digital business sectors in Indonesia.

Analysis of the Effectiveness of Internal Control as Fraud Prevention in the Kupang City Government

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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.