Narrative Literature Review: Fraud Prevention Efforts Through Strengthening Organizational Governance and Ethics

This study aims to review and examine the existing literature on fraud prevention in the public sector, with a focus on strengthening governance and establishing an organizational ethical culture as the main mechanisms in mitigating fraudulent practices. The method used is a narrative literature review. This study analyzes reputable journal articles, policy reports, and institutional documents published over the past ten years. Relevant studies were identified through academic databases using keyword searches related to governance, ethics, and fraud prevention. The collected literature was analyzed using a literature review to identify research gaps and existing gaps. The research findings show that strong internal controls, effective whistleblowing mechanisms, and the internalization of ethical values significantly enhance an organization’s capacity to prevent and detect fraud. Furthermore, the integration of governance and ethics creates a synergistic effect that enhances transparency, accountability, and public trust in government institutions. The findings also highlight the limited research on fraud prevention that incorporates ethical culture and religiosity as moderating variables. Theoretically, this study contributes to the development of a governance and ethics framework for fraud prevention by consolidating various research findings. Practically, the results of this study provide insights for policymakers and auditors to design an integrated strategy that combines internal controls, reporting mechanisms, and an ethical culture to strengthen fraud prevention measures. The study is also expected to increase public awareness in participating in assisting the government in fraud prevention.