CAN THE INTERNAL CONTROL SYSTEM REDUCE FRAUDULENT USE OF VILLAGE FUNDS IN ADVERSE SELECTION CONDITION?
DOI:
https://doi.org/10.28986/jtaken.v5i1.294Keywords:
Internal control system, adverse selection, village fundsAbstract
In recent years, corruption cases at the village level have been in the public spotlight. This was evidenced through around 154 corruption cases at the village level involving 112 village heads, 32 village officials and 3 village heads. This corruption case resulted in the state experiencing a loss of 47.56 billion rupiah during 2015-2017. This case is carried out through various modes such as the practice of budget abuse, fictitious reports, fictitious activities/projects, and budget bubbles. These various modes occur because the internal control system is ineffective, so it provides an opportunity for actors to act opportunistically. The goal is to maximize his personal interests as agents rather than the interests of the community as principals. This opportunistic behavior is caused by the existence of information asymmetry. Information asymmetry creates conditions for obtaining information that is not aligned between the village head as an agent and the community as the principal, so that the emergence of adverse selection. This study aims to examine the effect of the internal control system on fraudulent use of village funds in agency conflict conditions through adverse selection. This study used the laboratory experiment method with the subject being Accounting Student at Pattimura University Ambon. The data analysis technique uses Two-Way ANOVA with a 2x2 factorial experimental design. The results of the study show that (1) adverse selection conditions affect the relationship between the internal control system and fraudulent use of village funds, (2) the internal control system that does not effectively affect fraudulent use of village funds under adverse selection is compared to no adverse selection (3 ) adverse selection conditions do not affect fraudulent use of village funds when the internal control system is effective, and (4) in the absence of adverse selection, an effective internal control system will reduce fraudulent use of village funds compared to ineffective internal control systems.References
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Krismadji. (2008). Sistem informasi akuntansi. Yogyakarta: AMP YKPN.
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Lestari, N. K. L., & Supadmi, N. L. (2017). Pengaruh pengendalian internal, integritas dan asimetri informasi pada kecurangan akuntansi. E-Jurnal Akuntansi Universitas Udayana, 21(1), 389-417.
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Nahartyo, E., & Utami, I. (2015). Panduan praktis riset eksperimen. Jakarta: Indeks.
Narsa, N. P. D. H. R., & Supriyadi. (2017). Peran kode etik perusahaan dalam memitigasi perilaku eskalasi manajer berbingkai teori keagenan. Prosiding Simposium Nasional Akuntansi XX, Jember, Indonesia.
Nurhayati., & Muniarty, P. (2018). Pengaruh sistem pengendalian internal dan asimetri informasi terhadap kecenderungan kecurangan akuntansi serta dampaknya terhadap kualitas laporan keuangan. Jurnal Ilmiah VALID, 15(2), 125-135.
Puspasari, N., & Suwardi, E. (2012). Pengaruh moralitas individu dan pengendalian internal terhadap kecenderungan kecurangan akuntansi. Prosiding Simposium Nasional Akuntansi XV, Banjarmasin, Indonesia.
Randiza, I., Kamaliah., & Anisma, Y. (2016). Pengaruh pengendalian internal, asimetri informasi, moralitas aparat pemerintah dan ketaatan aturan terhadap kecenderungan kecurangan akuntansi: Studi kasus pada SKPD Kabupaten Indragiri Hilir. Jom Fekon, 3(1), 1108-1122.
Regulation of the Minister of Finance of the Republic of Indonesia Number 257/ PMK.07/2015 on Procedures for delays and/or deductions of balancing funds to regions that do not meet village fund allocation (Tata cara penundaan dan/atau pemotongan dana perimbangan terhadap daerah yang tidak memenuhi menimbang mengingat alokasi dana desa). Retrieved from http:// ditjenpp.kemenkumham.go.id/arsip/ bn/2015/bn2055-2015.pdf.
Regulation of the Minister of Finance of the Republic of Indonesia Number 49/ PMK.07/2016 concerning Procedures for allocation, distribution, use, monitoring and evaluation of village fund (Tata Cara Pengalokasian, Penyaluran, Penggunaan, Pemantauan dan Evaluasi Dana Desa). Retrieved from http:// www.jdih.kemenkeu.go.id/fullText/ 2016/49~PMK.07~2016Per.pdf.
Regulation of the Minister of Finance of the Republic of Indonesia Number 50/ PMK.07.2017 concerning management of transfers to regions and village funds as amended by Regulation of the Minister of Finance Number 112/ PMK.07.2017 (Pengelolaan Transfer ke Daerah dan Dana Desa). Retrieved fromhttp://www.jdih.kemenkeu.go.id/ fullText/2017/50~PMK.07~2017Per.p df.
Rest, J. R. (1986). Moral development: Advances in research and theory. Newyork: Praeger.
Ruankaew, T. (2013). The fraud factors. International Journal of Management and Administrative Science, 2(2), 1-5.
Setiawan, M. D., Adiputra, I. M. A. P., & Yuniarta, G. A. (2015). Pengaruh sistem pengendalian intern, asimetri informasi, dan keadilan organisasi terhadap kecurangan: Studi empiris pada bank perkreditan rakyat se-Kabupaten Buleleng. E-Journal S1 Akuntansi Universitas Pendidikan Ganesha, 3(1), 1-8.
Scott, W. R. (2015). Financial accounting theory. Seventh Edition. Toronto: Pearson Prentice Hall.
Tehupuring, R., & Lingga, R. A. (2017). Sistem pengendalian intern sebagai prediktor kecurangan akuntansi pada pemerintah daerah. Dapatkah loyalitas individu memitigasinya? Jurnal Tata Kelola dan Akuntantabilitas Keuangan Negara, 3(2), 113-129.
Thoyibatun, S. (2009). Faktor-faktor yang berpengaruh terhadap perilaku tidak etis dan kecenderungan kecurangan akuntansi serta akibatnya terhadap kinerja organisasi. Ekuitas: Jurnal Ekonomi dan Keuangan, 16(2), 245-260.
Triasmara, R. R. M., & Anna, Y. D. (2014). Pengaruh efektivitas pengendalian intern, kesesuaian kompensasi dan asimetri informasi terhadap kecenderungan kecurangan pada PT. Telekomunikasi Indonesia, Tbk. E-Prosiding of Management, 1(3), 437-451.
Tunji, S. T. (2013). Effective internal controls system as antidote for distress in the banking industry in Nigeria. Journal of Economics and International Business Research, 1(5), 106-121.
Wainaina, S. W. (2011). An evaluation of the internal control function: The case of Kenya polytechnic University Collage. University of Nairobi.
Wanjohi, M. W. (2014). Fraud in the banking industry in Kenya: A case of Commercial Bank of Africa, Kenya. United States International University Africa.
Albrecht, S. W., & Albrecht, C. (2004). Fraud examination and prevention. Australia: Thomson, South-Western.
Arens, A. A., & Loebecke, J. K. (1996). Auditing: pendekatan terpadu. Buku Satu. Edisi Bahasa Indonesia. Jakarta: Salemba Empat.
Arnold, D., & Ponemon, L. (1991). Internal auditor’s perceptions of whistleblowing and the influence of moral reasoning: an experiment. Auditing: A Journal of Practice and Theory, 10(2), 1-16.
Bernardi, R., & Guptill, S. (2008). Social desirability response bias, gender, and factors influencing organizational commitment: An international study. Journal of Business Ethics, 81(4), 797-809.
Boynton, W. C., Johnson, R. N., & Kell, W. G. (2002). Modern auditing. Jakarta: Erlangga.
Campbell, D. T., &. J. C. Stanley. (1966). Experimental and quasi-experimental designs for research. Boston, Mass: Houghton Mifflin Company.
Dewi, K. Y. K., & Ratnadi, N. M. D. (2017). Pengaruh pengendalian internal dan integritas pada kecenderungan kecurangan akuntansi satuan kerja perangkat daerah Kota Denpasar. E-Jurnal Akuntansi Universitas Udayana, 18(2), 917-941.
Eisenhardt, K. M. (1989). Agency theory. An assessment and review. The Academy of Management Review, 14(1), 57-74.
Frilia, F., Agusti, R., & Savitri, E. (2015). Pengaruh asimetri informasi, sistem pengendalian intern, dan kesesuaian kompensasi terhadap kecenderungan kecurangan akuntansi: Studi empiris pada bank swasta di Kota Pekanbaru. Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 2(1), 1-15.
Ghozali, I. (2006). Aplikasi analisis multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.
Government Regulation Number 8 of 2016 on the Second Amendment to Government Regulation Number 60 of 2014(Peraturan Pemerintah Nomor 8 Tahun 2016 Tentang Perubahan Kedua atas Peraturan Pemerintah Nomor 60 Tahun 2014). Retrieved from https://jdih.kemenkeu.go.id/fullText/2016/ 8TAHUN2016PP.pdf.
Gusmaini, W., Fauziati, P., & Yulistia, R. (2014). Pengaruh sistem pengendalian internal, sistem kompensasi, dan asimetri informasi terhadap kecenderungan kecurangan akuntansi. E-Jurnal
Bunghatta, 5(1), 1-13.
Hartman, B. (2014). Effects of internal control system on fraud in banks. Internal Journal of Financial Stability, 2(3), 45-50.
Ikatan Akuntan Indonesia. (2012). Standar akuntansi keuangan. Jakarta: Salemba Empat.
Indonesia Corruption Watch. (2018). Outlook Dana Desa 2018 Potensi Penyalahgunaan Anggaran Desa di tahun Politik. Indonesia.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency cost, and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Krismadji. (2008). Sistem informasi akuntansi. Yogyakarta: AMP YKPN.
Lane, R., & O’Connel, B. T. (2009). The changing face of regulator’s investigations into financial statement fraud. Accounting Research Journal, 22(2), 118-143.
Lestari, N. K. L., & Supadmi, N. L. (2017). Pengaruh pengendalian internal, integritas dan asimetri informasi pada kecurangan akuntansi. E-Jurnal Akuntansi Universitas Udayana, 21(1), 389-417.
Liyanarachi, G., & Newdick, C. (2009). The impact of moral reasoning and retaliation on whistle-blowing: New Zeland evidence. Journal of Business Ethics, 89(1) 37-57.
Muna, B. N., & Harris, L. (2018). Pengaruh pengendalian internal dan asimetri informasi terhadap kecenderungan kecurangan akuntansi: penelitian persepsi pengelola keuangan pada perguruan tinggi negeri BLU. Jurnal Akuntansi, Ekonomi dan Manajemen Bisnis, 6(1), 35-44.
Nahartyo, E. (2012). Desain dan Implementasi Riset Eksperimen Edisi 1. Semarang: UPP STIM YKPN.
Nahartyo, E. (2013). Desain dan Implementasi Riset Eksperimen Edisi 2. Semarang: UPP STIM YKPN.
Nahartyo, E., & Utami, I. (2015). Panduan praktis riset eksperimen. Jakarta: Indeks.
Narsa, N. P. D. H. R., & Supriyadi. (2017). Peran kode etik perusahaan dalam memitigasi perilaku eskalasi manajer berbingkai teori keagenan. Prosiding Simposium Nasional Akuntansi XX, Jember, Indonesia.
Nurhayati., & Muniarty, P. (2018). Pengaruh sistem pengendalian internal dan asimetri informasi terhadap kecenderungan kecurangan akuntansi serta dampaknya terhadap kualitas laporan keuangan. Jurnal Ilmiah VALID, 15(2), 125-135.
Puspasari, N., & Suwardi, E. (2012). Pengaruh moralitas individu dan pengendalian internal terhadap kecenderungan kecurangan akuntansi. Prosiding Simposium Nasional Akuntansi XV, Banjarmasin, Indonesia.
Randiza, I., Kamaliah., & Anisma, Y. (2016). Pengaruh pengendalian internal, asimetri informasi, moralitas aparat pemerintah dan ketaatan aturan terhadap kecenderungan kecurangan akuntansi: Studi kasus pada SKPD Kabupaten Indragiri Hilir. Jom Fekon, 3(1), 1108-1122.
Regulation of the Minister of Finance of the Republic of Indonesia Number 257/ PMK.07/2015 on Procedures for delays and/or deductions of balancing funds to regions that do not meet village fund allocation (Tata cara penundaan dan/atau pemotongan dana perimbangan terhadap daerah yang tidak memenuhi menimbang mengingat alokasi dana desa). Retrieved from http:// ditjenpp.kemenkumham.go.id/arsip/ bn/2015/bn2055-2015.pdf.
Regulation of the Minister of Finance of the Republic of Indonesia Number 49/ PMK.07/2016 concerning Procedures for allocation, distribution, use, monitoring and evaluation of village fund (Tata Cara Pengalokasian, Penyaluran, Penggunaan, Pemantauan dan Evaluasi Dana Desa). Retrieved from http:// www.jdih.kemenkeu.go.id/fullText/ 2016/49~PMK.07~2016Per.pdf.
Regulation of the Minister of Finance of the Republic of Indonesia Number 50/ PMK.07.2017 concerning management of transfers to regions and village funds as amended by Regulation of the Minister of Finance Number 112/ PMK.07.2017 (Pengelolaan Transfer ke Daerah dan Dana Desa). Retrieved fromhttp://www.jdih.kemenkeu.go.id/ fullText/2017/50~PMK.07~2017Per.p df.
Rest, J. R. (1986). Moral development: Advances in research and theory. Newyork: Praeger.
Ruankaew, T. (2013). The fraud factors. International Journal of Management and Administrative Science, 2(2), 1-5.
Setiawan, M. D., Adiputra, I. M. A. P., & Yuniarta, G. A. (2015). Pengaruh sistem pengendalian intern, asimetri informasi, dan keadilan organisasi terhadap kecurangan: Studi empiris pada bank perkreditan rakyat se-Kabupaten Buleleng. E-Journal S1 Akuntansi Universitas Pendidikan Ganesha, 3(1), 1-8.
Scott, W. R. (2015). Financial accounting theory. Seventh Edition. Toronto: Pearson Prentice Hall.
Tehupuring, R., & Lingga, R. A. (2017). Sistem pengendalian intern sebagai prediktor kecurangan akuntansi pada pemerintah daerah. Dapatkah loyalitas individu memitigasinya? Jurnal Tata Kelola dan Akuntantabilitas Keuangan Negara, 3(2), 113-129.
Thoyibatun, S. (2009). Faktor-faktor yang berpengaruh terhadap perilaku tidak etis dan kecenderungan kecurangan akuntansi serta akibatnya terhadap kinerja organisasi. Ekuitas: Jurnal Ekonomi dan Keuangan, 16(2), 245-260.
Triasmara, R. R. M., & Anna, Y. D. (2014). Pengaruh efektivitas pengendalian intern, kesesuaian kompensasi dan asimetri informasi terhadap kecenderungan kecurangan pada PT. Telekomunikasi Indonesia, Tbk. E-Prosiding of Management, 1(3), 437-451.
Tunji, S. T. (2013). Effective internal controls system as antidote for distress in the banking industry in Nigeria. Journal of Economics and International Business Research, 1(5), 106-121.
Wainaina, S. W. (2011). An evaluation of the internal control function: The case of Kenya polytechnic University Collage. University of Nairobi.
Wanjohi, M. W. (2014). Fraud in the banking industry in Kenya: A case of Commercial Bank of Africa, Kenya. United States International University Africa.
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Submitted
2019-03-31
Accepted
2019-05-23
Published
2019-06-30
How to Cite
Sitanala, T. F. (2019). CAN THE INTERNAL CONTROL SYSTEM REDUCE FRAUDULENT USE OF VILLAGE FUNDS IN ADVERSE SELECTION CONDITION?. Jurnal Tata Kelola Dan Akuntabilitas Keuangan Negara, 5(1), 37–56. https://doi.org/10.28986/jtaken.v5i1.294
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