Determinants of Fraud Prevention with Organizational Culture as a Moderating Variable

Joas; David Efendi

doi:10.24843/EJA.2026.v36.i08.p08

Authors

Joas Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya, Indonesia
David Efendi Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya, Indonesia

DOI:

https://doi.org/10.24843/EJA.2026.v36.i08.p08

Keywords:

Accounting Information Systems, Internal Control Systems, Good Corporate Governance, Fraud Prevention

Abstract

This study aims to analyze the effects of Accounting Information Systems (AIS), Internal Control Systems (ICS), and Good Corporate Governance (GCG) on fraud prevention in the cosmetics industry in Sidoarjo Regency. This study employs a quantitative research method with an ethnomethodological approach and uses accidental sampling, involving 124 respondents from 17 companies. Data were collected through questionnaires and secondary sources and were subsequently analyzed using Moderated Regression Analysis (MRA). The results indicate that Accounting Information Systems and Internal Control Systems have a positive and significant effect on Fraud Prevention, whereas Good Corporate Governance has a negative and significant effect on Fraud Prevention. Organizational Culture was found to weaken the effects of Accounting Information Systems and Internal Control Systems on Fraud Prevention, while strengthening the effect of Good Corporate Governance on Fraud Prevention. The implication of this study for the cosmetics industry is the importance of developing an Organizational Culture that is not solely oriented toward achieving targets but also emphasizes integrity, transparency, compliance, and accountability in all company activities.

References

Abdul Rahman, N. H., Hamzah, N., Jamaluddin, A., & Aziz, K. A. (2019). Establishing an effective internal control system for fraud prevention: A structured literature review. Asia-Pacific Management Accounting Journal, 14(3), 19–49. https://doi.org/10.24191/APMAJ.v14i3-02

Adiko, R. G., Astuty, W., & Hafsah. (2019). Pengaruh pengendalian intern, etika auditor, dan Good Corporate Governance terhadap pencegahan fraud PT. Inalum. Jurnal Akuntansi Dan Keuangan Kontemporer (JAKK), 2(1).

Chang, Y.-T., Chen, H., Cheng, R. K., & Chi, W. (2019). The impact of internal audit attributes on the effectiveness of internal control over operations and compliance. Journal of Contemporary Accounting & Economics, 15(1), 1–19. https://doi.org/10.1016/j.jcae.2018.11.002

Cressey, D. R. (1986). Why managers commit fraud. Australian & New Zealand Journal of Criminology, 19(4), 195–209.

Fatmawati, F., Ashari, M., & Alam, A. I. A. (2024). Pengaruh auditor internal, pengendalian internal, dan implementasi Good Corporate Governance terhadap pencegahan fraud. Akrual: Jurnal Bisnis Dan Akuntansi Kontemporer, 17(2), 145–157. https://doi.org/10.26487/akrual.v17i2.32835

Ferdiani, A. (2024). Pengaruh pengendalian internal, sistem informasi akuntansi, dan moralitas manajemen terhadap pencegahan kecurangan. Jurnal Kajian Akuntansi Dan Auditing, 20(1), 27–37. https://doi.org/10.37301/jkaa.v20i1.104

Hanifah, R., & Yasin, M. (2025). Kontribusi dan Daya Saing Industri Manufaktur di Kabupaten Sidoarjo: Analisis Strategi dan Faktor Pendukung. Maisyatuna, 6(2).

Irianti, L. R., Nuswantara, D. A., & Pujiono. (2025). The role of internal auditors in fraud prevention: A systematic literature review (SLR). Journal of Business and Information Systems, 7(1), 141–165. https://doi.org/10.31316/jbis.v7i1.290

Jefrian, & Sutandi. (2024). Pengaruh sistem pengendalian internal, sistem informasi akuntansi, dan Good Corporate Governance terhadap pencegahan fraud pada persediaan (Studi kasus PT. Mitra Bekerja Sejahtera). Global Accounting: Jurnal Akuntansi, 3(2).

Mandal, A., & Amilan, S. (2023). Preventing financial statement fraud in the corporate sector: Insights from auditors. Journal of Financial Reporting and Accounting, 23(1), 56–80. https://doi.org/10.1108/JFRA-02-2023-0101

Mandal, A., & S, A. (2025). Preventing financial statement fraud in the corporate sector: Insights from auditors. Journal of Financial Reporting and Accounting, 23(1), 56–80.

Meiryani, M., Andini, V., Fahlevi, M., Yadiati, W., Purnomo, A., & Prajena, G. (2022). Analysis of Accounting information systems based on artificial intelligence on fraudulent financial reporting trends in Indonesia. Proceedings of the 2022 4th International Conference on E-Business and E-Commerce Engineering, 83–93.

Nadirsyah, N., Indriani, M., & Mulyany, R. (2024). Enhancing fraud prevention and internal control: The key role of internal audit in public sector governance. Cogent Business & Management, 11(1), 2382389. https://doi.org/10.1080/23311975.2024.2382389

Nguyen, N. P., & Hoai, T. T. (2023). Internal controls driven by mindfulness toward enhanced ethical behaviors: Empirical evidence from Vietnam. Heliyon, 9(7), e18002. https://doi.org/10.1016/j.heliyon.2023.e18002

Qatawneh, A. M. (2025). The role of artificial intelligence in auditing and fraud detection in Accounting information systems: Moderating role of natural language processing. International Journal of Organizational Analysis, 33(6), 1391–1409. https://doi.org/10.1108/IJOA-03-2024-4389

Romney, M. B., & Steinbart, P. J. (2018). Accounting Information Systems (14th ed.). Pearson.

Shonhadji, N., & Maulidi, A. (2021). The roles of whistleblowing system and fraud awareness as financial statement fraud deterrent. International Journal of Ethics and Systems. https://doi.org/10.1108/IJOES-03-2021-0057

Sow, A. N. G., Basiruddin, R., Mohammad, J., & Rasid, S. Z. A. (2018). Fraud prevention in Malaysian small and medium enterprises (SMEs). Journal of Financial Crime, 25(2), 499–517. https://doi.org/10.1108/JFC-05-2017-0049

Wells, J. T. (2014). Principles of Fraud Examination. John Wiley & Sons.

Wu, H., Chang, Y., Li, J., & Zhu, X. (2022). Financial fraud risk analysis based on audit information knowledge graph. Procedia Computer Science, 199, 780–787.

Yanti, N. S. P., Anggraini, D., Florid, M. I., & Duha, R. I. (2026). Examining the Impact of Accounting Information Systems, Internal Control, and Corporate Governance on Fraud Prevention. Asian Journal of Management, Entrepreneurship and Social Science, 6(01), 288–304.

Yuniarti, R. D. Y., & Ariandi, I. (2017). The effect of internal control and anti-fraud awareness on fraud prevention (A survey on inter-governmental organizations). Journal of Economics, Business, and Accountancy Ventura, 20(1), 113–124. https://doi.org/10.14414/jebav.v20i1.751

Zahari, A. I., Said, J., & Arshad, R. (2022). The influence of ethical culture on corruption: The public sector’s perspective. International Journal of Public Sector Performance Management, 10(2–3), 236–257.

Zanaria, Y. (2017). Pengaruh aplikasi teknologi, Accounting reporting terhadap pencegahan fraud serta implikasinya terhadap reaksi investor. Akuisisi: Jurnal Akuntansi, 13(1), 91–100. https://doi.org/10.24127/akuisisi.v13i1.137