Pengaruh Fraud Heptagon terhadap Tingkat Fraud dalam Pengelolaan Keuangan Daerah: Peran Whistleblowing System di DPPKAD Jawa Timur

Abstract

The purpose of this study was to examine the effect of Fraud heptagon components on the level of fraud in regional financial management by considering the moderating effect of the whistleblowing system. The East Java Province Revenue, Financial Management, and Regional Asset Service (DPPKAD) which has 38 work units was the location of the study. A total of 150 employees were selected using a purposive sampling method based on factors of position, work experience, and involvement in regional financial management. Data were collected using a questionnaire and the results were analyzed using the Statistical Package for the Social Sciences (SPSS) 26. Multiple linear regression analysis, moderation interaction test, validity and reliability test, and classical assumption test were used to evaluate the effect of the whistleblowing system on the relationship between the Fraud heptagon variables and the level of fraud. Financial pressure, opportunity, rationalization, ability, arrogance, egoism, and external circumstances are the seven components of the Fraud heptagon, and the results show that these factors have a significant impact on the level of fraud in regional financial management. Furthermore, the relationship between fraud in regional financial management and fraud in Heptagon has been shown to be moderated by the violation disclosure system, which weakens it. According to the study's conclusion, increasing transparency, strengthening internal control systems, and improving disclosure systems can all be useful tactics to stop public sector fraud. It is hoped that this study will provide useful information for local governments to improve financial management and accountability.