MANAGEMENT AND ACCOUNTING REVIEW

 


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Volume 22 No. 3, December 2023

 

ARTICLE INFO
Article History:
Received: 29 July 2023
Accepted: 07 October 2023
Available online: 01 December 2023

MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 22 NO. 3, DECEMBER 2023
https://doi.org/10.24191/MAR.V22i03-12

The Role of Unethical Behavior in Moderating the Influence of Governance, Risk Management, and Compliance on Financial Fraud Prevention in Indonesian Local Governments


Otniel Safkaur1♣, Tarjo Tarjo2, Alexander Anggono2, and Zuraidah Mohd Sanusi3

1Faculty of Economics and Business, Universitas Cenderawasih, Jayapura, Indonesia
2Department of Accounting, Universitas Trunojoyo Madura, Bangkalan, Indonesia
3Accounting Research Institute & Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia



ABSTRACT

This study examined the moderation effect of unethical behavior on the relationship of governance, risk management, and compliance on financial fraud prevention in the context of Indonesian Local Governments. Focusing on Regional Apparatus Organizations and local government auditor offices, the research comprised of a robust sample of 120 respondents. Employing the rigorous Structural Equation Modeling-Partial Least Square (SEM-PLS) with WarpPLS software for analysis, the findings revealed a significant weakening effect of unethical behavior on the relationship between governance, risk management, and compliance and financial fraud prevention in the local government setting. Notably, this research contributes to the limited literature on governance, risk management and compliance in the realm of local government studies. Moreover, by incorporating a moderating variable, this study enhances its academic significance, as it addresses the pervasive issue of unethical conduct that permeates the local government landscape and further engages with prior debates in the field.


Keywords: Governance, Risk management, Compliance, financial fraud prevention, unethical behavior
Corresponding Author: Otniel Safkaur; Faculty of Economics and Business, Universitas Cenderawasih, Jayapura, Indonesia; Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel: +62811488853

 

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