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The efficacy of control environment as fraud deterrence in local government


  • Nuswantara Dian Anita


  • Maulidi Ach


  • Pujiono

    (Universitas Negeri Surabaya, Jl. Raya Kampus Unesa, Lidah Wetan, Lakarsantri, Kota SBY, Jawa Timur 60213, Indonesia)


In a globalised scenario, the topic of an enormous increase of malfeasance in the local governments, posing catastrophic threats which come from vicious bureaucratic apparatus, becomes a global phenomenon. This current study uses case study material on the risk management control system specially the control environment in Indonesia local governments to extend existing theory by developing a contingency theory for the public sector. Within local government, contingency theory has emerged as a lens for exploring the links between public sector initiatives to improve risk mitigation and the structure of the control system. The case illustrates that the discretion of control environment - the encouragement of a local government’s control environment - is considered as a springboard for fraud deterrence and might be the loopholes in the government control systems.

Suggested Citation

  • Nuswantara Dian Anita & Maulidi Ach & Pujiono, 2017. "The efficacy of control environment as fraud deterrence in local government," Management & Marketing, Sciendo, vol. 12(4), pages 591-613, December.
  • Handle: RePEc:vrs:manmar:v:12:y:2017:i:4:p:591-613:n:5

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