The Effect of Local Apparatus Competence, Financial Reporting Compliance and Internal Control Environment on Fraud Prevention: The Role of Local Assistants as Moderation Variable

Abstract

The aims of this research are to inspect and investigate the impact of the competence of village officials, compliance with financial reporting, and the internal control environment on fraud prevention and to test the effectiveness of the role of village assistants to strengthen or weaken. This research is the actors who manage the village funds taken from each village, namely the head, secretary and village treasurer, with a total of 327 respondents. Sampling using the perposive sampling method, namely sampling based on criteria. Methods of data analysis using the WarpPLS 7.0 program assistance technique. Results have demonstrated that the expertise of village officials, compliance with financial statements and the internal monitoring environment have had a substantial and partial impact on the fraud prevention in village fund administration, the efficacy of the position of village assistants has not improved the competence of village officials to deter fraud, the effectiveness of village assistants. Internal regulation of fraud prevention in the administration of village funds, the moderation variable in this analysis was listed as quasi-modersai because the effectiveness component has a direct effect on the prevention of fraud.