PENGARUH EFEKTIVITAS PENGENDALIAN INTERNAL DAN PERAN AUDIT INTERNAL TERHADAP PENCEGAHAN KECURANGAN DENGAN SENSITIVITAS ETIS SEBAGAI VARIABEL MODERASI

Abstract

According to the Association of Certified Fraud Examiners (ACFE), fraud is one of the most damaging issues organizations face. Based on 2019 ACFE data, the financial and banking industry experienced the highest losses, accounting for 41.4% of total fraud-related damages. To minimize such occurrences, a robust internal control system must be properly implemented, and internal audit plays a vital role in upholding ethical standards to prevent fraud within organizations. This study is a quantitative research that utilizes an online questionnaire for data collection. Data were analyzed using the WarpPLS 8.0 application with a second-order analysis method. The results show that the role of internal audit significantly influences fraud prevention, while the effectiveness of internal control does not have a significant impact. Additionally, ethical sensitivity has a weak effect in strengthening the influence of internal control on fraud prevention and does not significantly enhance the role of internal audit in preventing fraudulent activities.

Keywords: Effectiveness of Internal Control, Role of Internal Audit, Ethical Sensitivity and Fraud Prevention.