Fraud Phenomenon in The Government Sector in Indonesia

Abstract

. This study aims to prove the factors that can reduce fraud in the public sector in Indonesia, especially in Lampung Province. Fraud is an action that endangers the sustainability of an organization because the organization will massively be destroyed when fraudulent practices cannot be detected. Collecting data in this study through a questionnaire with respondents internal and external auditors of local government in Lampung Province. The data were processed using the PLS Structural Equational Model (SEM). The results showed that gender and task complexity did not affect fraud. The audit process is conducted in accordance with State Financial Audit Standards so that whoever carries out the audit, will give the same conclusion. The complexity of the auditor's duties does not affect fraud practice. When the auditor has several duties, the completion process will always go through the supervision of the supervisor so that the audit process still in high quality.