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Proactive Fraud Audit, Whistleblowing and Cultural Implementation of Tri Hita Karana for Fraud Prevention

Author

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  • Anantawikrama Tungga Atmadja
  • Komang Adi Kurniawan Saputra
  • Daniel T.H. Manurung

Abstract

Purpose: Fraud prevention is required in managing village funds because the government distributes village funds with the aim of building the village economy so that the need for supervision and management of village funds must be proactive and transparent. This study aims to examine the proactive fraud audit, whistleblowing and tri hita karana culture variables for fraud prevention in village fund management. Design/Methodology/Approach: The study used a survey method with a personally administered questionnaire and multiple linear regression methodology with ordinary least squares on a sample of 88 villages in Bali Province. Findings: The results of this study are proactive fraud audit and tri hita karana culture that significantly influence fraud prevention in village fund management, while the whistleblowing variable does not show a significant influence on village fund management fraud prevention. Practical Implication: The village’s government is required to manage the village’s funds and formulate budgets according to the rule of the central government with the principles of honesty, transparency and accountability by knowing that all the flows of funds from the government are susceptible to fraud, so it needs to be protected by various systems and local cultures that exist in each region. Originality/Value: The research was conducted in a way to conclude that the public must know the practice of fraud related to village’s funds carried out by individuals in the management of village. In this case public can consider the management of village funds any time it has the chance to do so.

Suggested Citation

  • Anantawikrama Tungga Atmadja & Komang Adi Kurniawan Saputra & Daniel T.H. Manurung, 2019. "Proactive Fraud Audit, Whistleblowing and Cultural Implementation of Tri Hita Karana for Fraud Prevention," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 201-214.
    • Handle: RePEc:ers:journl:v:xxii:y:2019:i:3:p:201-214
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    References listed on IDEAS

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    1. Marcia P. Miceli & Janet P. Near & Charles R. Schwenk, 1991. "Who Blows the Whistle and Why?," ILR Review, Cornell University, ILR School, vol. 45(1), pages 113-130, October.
    2. Helmi Yazid & Tulus Suryanto, 2016. "An Investigation of Factors Influencing Audit Quality According to Islamic Audit: A Study for the Jakarta Islamic Index," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 20-38.
    3. Heungsik Park & John Blenkinsopp, 2009. "Whistleblowing as Planned Behavior – A Survey of South Korean Police Officers," Journal of Business Ethics, Springer, vol. 85(4), pages 545-556, April.
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    Cited by:

    1. Komang Adi Kurniawan Saputra & Daniel T. H. Manurung & Lia Rachmawati & Eka Siskawati & Franklin Kharisma Genta, 2021. "Combining the Concept of Green Accounting with the Regulation of Prohibition of Disposable Plastic Use," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 84-90.
    2. Sugeng Wahyudi & Tarmizi Achmad & Imang Dapit Pamungkas, 2022. "Prevention Village Fund Fraud in Indonesia: Moral Sensitivity as a Moderating Variable," Economies, MDPI, vol. 10(1), pages 1-16, January.
    3. Skoczylas-Tworek Agnieszka, 2022. "Internal Audit as a Tool to Reduce the Risk of Fraud and Abuse," Journal of Intercultural Management, Sciendo, vol. 14(4), pages 4-20, December.

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    More about this item

    Keywords

    Proactive fraud audit; whistleblowing; tri hita karana; fraud.;
    All these keywords.

    JEL classification:

    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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