The Influence of Organizational Culture and the Role of Internal Auditors on Fraud Prevention, with Internal Control Systems as Mediators: A Case Study on IGE

Abstract

The purpose of this research is to examine the influence of organizational culture and the role of internal auditors on fraud prevention, with internal control systems as a mediator. This study utilizes primary data by distributing questionnaires to employees working at IGE (General Inspection of the State) and five Ministries, namely the Ministry of Agriculture, Ministry of Transportation and Communication, Ministry of Health, State Ministry, and the Ministry of Higher Education. The sampling is done using the census sample method, with 100 employees as the sample in this research. The analysis method used to test hypotheses is path analysis using the SmartPLS data analysis tool version 4.0. The results of this study indicate that organizational culture influences fraud prevention, the role of internal auditors influences fraud prevention, organizational culture influences internal control systems (SPI), the role of internal auditors does not influence SPI, SPI influences fraud prevention, organizational culture influences fraud prevention through SPI, and the role of internal auditors influences fraud prevention through SPI.