Auditor's Individual Morality In Moderating The Love Of Money And Machiavellian Characteristics Of Accounting Fraud Tendencies

Abstract

A survey conducted by the Association of Certified Fraud Examiners (ACFE)
in 2022 revealed 2,448 reported fraud cases across 125 countries, with
Indonesia leading the Asia Pacific region at 36 cases. This research aims to
analyze the influence of Love of Money and Machiavellian traits on accounting
fraud tendencies, with individual morality as a moderating variable. The
study, conducted in Makassar City Public Accounting Firms (KAP), involved
65 auditors as respondents. Data were analyzed using Moderated Regression
Analysis (MRA). The findings indicate that Love of Money and Machiavellian
traits significantly affect accounting fraud tendencies. Furthermore, individual
morality moderates the relationship between Love of Money and
Machiavellian traits on fraud tendencies. This study is essential due to its focus
on understanding behavioral factors that contribute to accounting fraud in
Indonesia, a country with significant fraud cases. The contribution of this
research lies in providing insights for improving auditing practices by
emphasizing the importance of moral values in preventing fraud.