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Reducing Accounting Fraud Tendencies: The Role of Internal Control Effectiveness, Information Asymmetry, and Religiosity I Nyoman Arta Nadi; Luh Kade Datrini
Husnayain Business Review Vol. 6 No. 1 (2026)
Publisher : Asosiasi Dosen Peneliti Ilmu Ekonomi dan Bisnis Indonesia (ADPEBI)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54099/hbr.v6i1.1768

Abstract

Purpose – This study aims to examine the effect of internal control effectiveness, information asymmetry, and religiosity on the tendency of accounting fraud in Village Credit Institutions (LPD) in Baturiti District. Methodology/approach – This research employed a quantitative approach using primary data collected through questionnaires distributed to LPD management and employees directly involved in financial management. The population consisted of 139 individuals, with 107 respondents selected through purposive sampling. Data were analyzed using multiple linear regression techniques. Findings – The results indicate that internal control effectiveness has a negative and significant effect on the tendency of accounting fraud, while information asymmetry has a positive and significant effect. Religiosity also shows a negative and significant influence on the tendency of accounting fraud. These findings suggest that stronger internal controls and higher religiosity reduce fraud tendencies, whereas greater information asymmetry increases the likelihood of fraud. Novelty/value – This study provides empirical evidence on the combined role of organizational control systems, information transparency, and moral values in preventing accounting fraud within LPDs. The results can serve as a reference for improving governance and fraud prevention strategies in rural financial institutions. Keywords: Internal Control Effectiveness, Information Asymmetry, Religiosity, Accounting Fraud Tendency, Village Credit Institutions (LPD)
Co-Authors A A S Manik Cindrawati A.A. Bagus Amlayasa Anak Agung Ayu Erna Trisnadewi Anak Agung Gede Oka Wisnumurti Anak Agung Rai Asmani K., Anak Agung Angga Adi Suarjaya I Komang Arlia Sugiarmini D K T Sukmadewi Dewa Ayu Nyoman Sriastuti, Dewa Ayu Nyoman Erminilda Alvionita Lehot Gde Deny Larasdiputra Gusti Ayu Kade Dewi Utari Gusti Ayu Kade Dewi Utari Hillary Christensen Haris I Gusti Ayu Agung Milla Cahyaninggaluh I Gusti Ayu Intan Saputra Rini I Gusti Ngurah Sanjaya I Kadek Rubi Mulyana I Ketut Bagus Indranatha I Ketut Selamet I Made Suwitra I Made Suwitra I Made Suwitra, I Made I Made Wianto Putra I Nyoman Arta Nadi I P A Raditya_Putra I W Widiantara_Putra I Wayan Sudemen I Wayan Wesna Astara I.B Made Putra Manuaba I.B. Made Putra Manuaba Ida Ayu Gita Sri Mahadewi Ida I Dewa Ayu Manik SASTRI Ida I Dewa Ayu Mas Manik Sastri Joannete Maria Cimpatara De Joman Joannete Maria Cimpatara De Joman Ketut Sudarmini L. G. P. Sri Eka Jayanti L.G.P Sri Eka Jayanti Luh Suriati Manik Sastri, I. I. D. A. Muhammad Asyraf Hasim N K Mardewi N L P Sulis_Dewi N P G Satria_Kesumayasa Ni Kadek Anik Maharani Ni Kadek Suartika Yanti Ni Komang Shinta Ayu Putri Kartika Sari Ni Luh Putu Aryani Ni Luh Putu Mita Miati Ni Luh Putu Ratna Wahyu Lestari Ni Made Dessy Natalia Ni Nengah Seri Ekayani Ni Nengah Widiasti Ni Nyoman Rusmiati Ni Putu Astri Purnama Dewi Ni Putu Diah Utari Ni Putu Pertamawati, Ni Putu Ni Putu Riasning Ni Putu Shinta Larassati Dewi Putu Gede Wisnu Permana Kawisana Sintya Wiranti Cahyono Winny Aprilia Nurita Ujur Agun Yoga, I Gusti Agung Prama