The Effect of Good University Governance, Effectiveness of Internal Controlling System, and Obedience of Accounting Regulation on the Tendency of Fraud in PTKIN-BLU

Abstract

This study aims to search the empirical evidence of implementation effect of good university governance, effectiveness of internal controlling system, and obedience of accounting regulation on the tendency of fraud in PTKIN-BLU. This study consists of an independent variable and three dependent variables. The independent variable of this study is the tendency of accounting fraud, while the dependent variables in this study are good university governance, effectiveness of internal controlling system, and obedience of accounting regulation. The sample of this study is 80 respondents by using purposive judgment sampling method, which is a sampling with certain criteria. Data are collected by using questionnaire survey method by distributing questionnaires to the respondents in financial report making division of PTKIN-BLU. After data are collected, data analysis is done by using SEM (Structural Equation Square) with the use of SmartPLS software. Based on the data processing result, it is known that there is negative and significant effect from variable good university governance and the effectiveness of internal controlling system on variable the tendency of accounting fraud. It demonstrates the advantage of governance reinforcement as well as internal controlling to prevent fraud behavior in PTKIN-BLU. Meanwhile, variable obedience of accounting regulation does not affect the tendency of accounting fraud. Therefore, the level of accounting regulation obedience in PTKIN-BLU does not affect the decrease of accounting fraud tendency.

Keywords: Good university governance, effectiveness of internal controlling system, obedience of accounting regulation, and tendency of accounting fraud