The Influence of Internal Control on Fraud Prevention In Company Financial Management

Rahma Damayanti
Mamat, Suryanti
Febriantoko, Jovan

JURNAL MANAJEMEN MOTIVASI
Vol 22 No 2 (2026): Jurnal Manajemen Motivasi

This study analyzes the effect of internal control comprising Risk Assessment (X1), Control Environment (X2), and Control Activities (X3) on Fraud Prevention in financial management among IDX listed mining companies from 2021 to 2023. Using secondary data from 111 observations across 37 companies and Random Effect Model regression, the results indicate that Control Activities have a significant positive impact on fraud prevention. Conversely, Control Environment shows a significant negative effect, while Risk Assessment has no significant influence. Together, these variables explain 55.10% of fraud prevention variance. The findings emphasize the vital role of structured control procedures.