The Effect Of Institutional Ownership, Internal Audit Organization Status, And Audit Committee On Fraud Prevention With Political Connection As Moderating Variable

Abstract

This study aims to examine the effects of institutional ownership, internal audit organization status, and audit committee on the frequency of audit committee meetings on fraud prevention, with a moderating variable of political affiliation. The study's sample consisted of 32 mining sector businesses that were listed on the Indonesia Stock Exchange between 2020 and 2024, using the Purposive Sampling technique. Secondary data was taken from the websites of individual firms and the Financial Statements and Annual Reports of Mining firms that were posted between 2020 and 2024 on the Indonesia Stock Exchange's official website (www.idx.co.id). The analysis method used in this study is known as Moderated Regression Analysis (MRA). The following are the study's conclusions: 1) Institutional ownership greatly enhances the ability to avoid fraud, 2) The status of the internal audit organization has a significant benefit for fraud prevention, 3) The frequency with which the Audit Committee meets has an adverse effect on fraud prevention, 4) Political connections can lessen the negative effects of institutional ownership on fraud prevention, 5) The influence of Internal Audit Organization Status may be lessened by the connection between Political Connection and Fraud Prevention, 6) Political Connection is not able to minimize the influence of the Audit Committee on the Frequency of Audit Committee Meetings on Fraud Prevention.