Articles

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

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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.

Government Internal Control System and Quality of Financial Statements in West Aceh Regency, Indonesia

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The purpose of this study was to analyze the effect of the Government’s Internal Control System (SPIP) on the quality of presentation of Financial Statements in West Aceh Regency. The sample in this study were employees at the Regional Financial Management Agency (BPKD) of West Aceh Regency, totaling 25 respondents. The data used in this study were obtained by distributing questionnaires. The data analysis used in this study was simple linear regression analysis using SPSS 25. The results showed that the government’s internal control system affected the quality of the presentation of financial statements at BPKD of West Aceh Regency. The better the internal control system implemented by the authorized apparatus, the better the quality of the presentation of financial reports and government accountability in budget management.

The Effect of Accounting Information System on the Decision-Making Process of Addis Ababa City Electric Utility’s

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One of the supporting information systems utilized in performing managerial tasks including planning, organizing, controlling, and decision-making for the better utilization of the resources available is Accounting Information Systems.  The main objective of this study was to determine the effect of Accounting Information Systems on the decision-making process in the case of Addis Ababa City Electric Utility related to inventory management, Internal control system, bill collection (sales,) and financial statements. The researcher used both primary and secondary data and used explanatory research methods. The researcher used a random sampling technique and distribute questionnaires to the Addis Ababa City Electric Utility staff and used Pearson correlation and linear multiple regression to check the relationship and effect between the variables respectively. The finding of this study showed that accounting information systems have a positive and significant effect on inventory management, financial statement, bill collection, and internal control system in the decision-making process. As a result, the researcher came to the conclusion that the accounting information system significantly and favorably influences the decision-making process. For better decision-making, the study recommends businesses employ accounting information systems.

Factors That Influence the Performance of Saving and Loan Cooperatives in the Banyumas Residency Area with the Quality of Financial Statements as Intervening Variables

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This study aims to analyze AIS, leadership competency, and internal control system’s influence on performance with the quality of financial statements as an intervening variable. The research target is savings and loan cooperatives in the Banyumas Residency area (Banyumas, Purbalingga, Cilacap, and Banjarnegara). The samples were 110 savings and loan cooperatives. The data collection method was filling out questionnaires. Respondents in this study were leaders/managers from each saving and loan cooperative. The data analysis technique used is SEM PLS, including the outer model and inner model steps. The results of this study indicate that the use of AIS, leadership competency, and internal control system have a positive and significant effect on report quality. Then the internal control system and the quality of the financial statement have a positive and significant influence on performance. However, the use of AIS has a negative impact on performance and leadership competency does not affect performance. The results of the intervening variable test show that the quality of the financial statement is proven as the mediator, so the use of AIS, leadership competency, and internal control system have a positive and significant effect on performance. This research implies that savings and loan cooperatives can improve performance by maximizing the use of AIS, having competent leaders, optimizing the internal control system function, and improving the quality of financial statements.