AFRE Accounting Financial Review
Vol. 7 No. 1 (2024): March 2024

Can Internal Mechanisms Control Detect Corruption Through Fraudulent Behaviour?

Magda Siahaan (Trisakti School of Management)
Theonino David Nauli (Universitas Terbuka, Accounting Department, 15437 South Tangerang, Banten, Indonesia)
Bonar Paul Siahaan (Monash University, Tangerang Regency, Banten)



Article Info

Publish Date
30 Jun 2024

Abstract

This paper aims to find the link between integrated GRC (governance, risk management, and compliance) and internal audit, which is included in internal mechanisms control for detecting corruption and regulatory compliance in its success. This study uses the Partial Least Square method for primary data analysis on 48 public and private companies and hypothesis testing, supplemented by interviews with respondents.  This study indicates the significant influence of the integrated GRC on corruption detection and necessary mediation with internal audit, in addition to the importance of regulatory compliance and the need for the regulatory drive for the successful implementation of internal mechanisms control. The limited application of GRC for model alignment, strategic integration, and standardization of GRC terminology shows the depth of context to identify the application of GRC in organizations in their success in detecting corruption. Organizations can assess root causes or weaknesses in existing systems/strategies/ regulations in detecting corruption to eradicate corruption. It is still rare for integrated GRC research to mediate the relationship between internal audit and corruption detection and its relation to regulatory compliance.DOI: https://doi.org/10.26905/afr.v7i1.11893

Copyrights © 2024






Journal Info

Abbrev

afr

Publisher

Subject

Economics, Econometrics & Finance

Description

Accounting and Financial Review (AFRe), is a publication of Graduate School Program, University of Merdeka Malang. The journal is an article published continuously which is intended not only as a place to share ideas, study, and analysis but also as an information channel to improve and develop ...