The effect of internal control effectiveness and board of commissioner effectiveness on fraud occurrence

Carine Sophia Margaretha Nggadas; Vera Diyanti

The effect of internal control effectiveness and board of commissioner effectiveness on fraud occurrence

Carine Sophia Margaretha Nggadas, Vera Diyanti

Department of Accounting

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

This study examines the effect of internal control effectiveness and the Board of Commissioner effectiveness on the fraud occurrence in a company. The internal control effectiveness was measured using COSO Internal Control Framework, while the Board of Commissioner effectiveness was measured using ASEAN Corporate Governance Scorecard v.2.0 level 1. The research was based on a quantitative method, by analyzing the data collected from the annual reports of companies listed on the Indonesia Stock Exchange in the period 2015-2017, except financial sector companies. This study shows that internal control effectiveness has a negative impact to fraud occurrence in a company. But this study cannot prove the supervisory role of the Board of Commissioner in minimizing the probability of fraud occurrence in the company.

Original language	English
Title of host publication	Research on Firm Financial Performance and Consumer Behavior
Publisher	Nova Science Publishers, Inc.
Pages	69-85
Number of pages	17
ISBN (Electronic)	9781536180206
ISBN (Print)	9781536180206
Publication status	Published - 1 Jan 2020

Keywords

Board of commissioner effectiveness
Fraud occurrence
Internal control effectiveness

Cite this

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title = "The effect of internal control effectiveness and board of commissioner effectiveness on fraud occurrence",

abstract = "This study examines the effect of internal control effectiveness and the Board of Commissioner effectiveness on the fraud occurrence in a company. The internal control effectiveness was measured using COSO Internal Control Framework, while the Board of Commissioner effectiveness was measured using ASEAN Corporate Governance Scorecard v.2.0 level 1. The research was based on a quantitative method, by analyzing the data collected from the annual reports of companies listed on the Indonesia Stock Exchange in the period 2015-2017, except financial sector companies. This study shows that internal control effectiveness has a negative impact to fraud occurrence in a company. But this study cannot prove the supervisory role of the Board of Commissioner in minimizing the probability of fraud occurrence in the company.",

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N2 - This study examines the effect of internal control effectiveness and the Board of Commissioner effectiveness on the fraud occurrence in a company. The internal control effectiveness was measured using COSO Internal Control Framework, while the Board of Commissioner effectiveness was measured using ASEAN Corporate Governance Scorecard v.2.0 level 1. The research was based on a quantitative method, by analyzing the data collected from the annual reports of companies listed on the Indonesia Stock Exchange in the period 2015-2017, except financial sector companies. This study shows that internal control effectiveness has a negative impact to fraud occurrence in a company. But this study cannot prove the supervisory role of the Board of Commissioner in minimizing the probability of fraud occurrence in the company.

AB - This study examines the effect of internal control effectiveness and the Board of Commissioner effectiveness on the fraud occurrence in a company. The internal control effectiveness was measured using COSO Internal Control Framework, while the Board of Commissioner effectiveness was measured using ASEAN Corporate Governance Scorecard v.2.0 level 1. The research was based on a quantitative method, by analyzing the data collected from the annual reports of companies listed on the Indonesia Stock Exchange in the period 2015-2017, except financial sector companies. This study shows that internal control effectiveness has a negative impact to fraud occurrence in a company. But this study cannot prove the supervisory role of the Board of Commissioner in minimizing the probability of fraud occurrence in the company.

KW - Board of commissioner effectiveness

KW - Fraud occurrence

KW - Internal control effectiveness

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M3 - Chapter

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SP - 69

EP - 85

BT - Research on Firm Financial Performance and Consumer Behavior

PB - Nova Science Publishers, Inc.

ER -

The effect of internal control effectiveness and board of commissioner effectiveness on fraud occurrence

Abstract

Keywords

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