Prevention of Accounting Fraud in the Village Government

Abstract

This research has a purpose to examine factors that affect the level of accounting fraud. The population of this research was employees who work in 10 villages in Kesamben District, Blitar Regency. The approach used in this research was a mixed method, in which a qualitative approach was used to strengthen quantitative findings. The data were taken by directly spreading questionnaires to the respondents and there were 40 questionnaires and also the answers from the interview with the village head of Kemirigede. The data analysis used SmartPLS 3.0. The result of this research shows that individual morality positively affects accounting fraud. Besides that the result of this research shows that the information asymmetry, effectiveness of internal control, and conformity of compensation not significant towards accounting fraud. The result if the interview also supports these findings. Keywords—information asymmetry, effectiveness of internal control, conformity of compensation, level of accounting fraud,