Fraud Prevention: The Forensic Auditors’ Knowledge and Religiosity Perspectives

Abstract

The research aims to get empirical evidence on how to handle corruption. Indonesia became the most corrupt country in Asia with a score of 9.07 out of 10. This research is vital because fraud in the government sector (corruption), has occurred systematically, and widely, and has affected the whole lifeline of Indonesian society. The analysis tool that is used is the structural equation modeling with Partial Least Square (PLS) approach. The respondents were professionals (forensic auditors in Indonesia’s Financial and Development Supervisory Agency/BPKP). The sample in this research is 65 auditors. The results showed that there is a positive and significant influence on the knowledge of forensic auditor and fraud prevention; religiosity with fraud prevention; the knowledge of forensic auditor with religiosity; and auditor's knowledge through religiosity significantly positively give influence fraud prevention. This study provided a significant impact in preventing of fraud not only by relying on external human supervision, but it needs to internalize the values of religiosity for auditors who always follow the rules at work. Therefore, it will reduce any unethical behaviors that not following the rules. The limitation of this research the sample size is limited to Indonesia, with only internal government auditors and generalizations cannot be made.