PENGENDALIAN INTERNAL, BUDAYA PERUSAHAAN, DAN INTEGRITAS KARYAWAN TERHADAP PENCEGAHAN FRAUD

Abstract

This study examines the effects of Internal Control, Corporate Culture, and Employee Integrity on Fraud Prevention in large-scale service companies in Balikpapan, Indonesia. The unit of analysis is the individual employee, with 196 respondents from 88 companies. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.2.9. The available research archive does not record the data-collection period, the number of questionnaires distributed and returned, or the response rate. Internal Control had a positive effect on Fraud Prevention (β=0.323; t=4.095; p<0.001), as did Corporate Culture (β=0.307; t=3.819; p=0.004) and Employee Integrity (β=0.259; t=2.913; p<0.001) under a two-tailed test. The model explained 61.0% of the variance in Fraud Prevention (R²=0.610). The novelty lies in jointly examining the three factors in large-scale service companies in Balikpapan. Practically, fraud prevention should integrate formal controls, ethical organizational culture, and employee integrity. Fraud Hexagon is used as a conceptual lens rather than a directly tested construct.

Keywords: Internal Control, Corporate Culture, Employee Integrity, Fraud Prevention, Fraud Hexagon