Mediation Effects of Moral Reasoning and Integrity in Organizational Ethical Culture on Accounting Fraud Prevention

Title : Mediation Effects of Moral Reasoning and Integrity in Organizational Ethical Culture on Accounting Fraud Prevention

Authors :
1. Hidayatul Khusnah
2. Noorlailie Soewarno

Department :  Akuntansi

Journal Name :  ABAC Journal

Kinds of Journal : Q4

Keywords : Organizational ethical culture, moral reasoning, integrity, prevention of accounting fraud.

ABSTRACT

This study aims to investigate the mediating effect of moral reasoning and integrity on the effect of ethical organizational culture on the prevention of accounting fraud. This study also examines the effects of ethical organizational culture, moral reasoning, and integrityon ac counting fraud prevention. This research was conducted at the BPKP (Financial and Development Supervisory Agency) of East Java Province, BPKP is a government agency that oversees the use of budget allocations for regional development. Data was collected from a sample of 84 respondents. The data analysis technique in this study consisted of apartial least squares analysis. The results of the hypothesis testing discovereda positive influence of ethical organ-izational culture on moralreasoning and employee integrity. In contrast, there was no statistical support for theeffect of ethical organizational culture on preventingaccounting fraud. The main finding in this study is that moral reasoning and integrity positively affect the prevention of accounting fraud, indicatingthat ethical and moral culture can change employees’perspectives by allowing them to distinguish good work behavior frompoor or wrongful work behavior.

For details : http://www.assumptionjournal.au.edu/index.php/abacjournal/article/view/5781