The Role of Internal Audit, Control Policies, and Staff Training in Reducing Fraud Frequency: A Quantitative Approach

Prayogi, Gusti Dian and Haryana, Ratih Dewi Titisari and Memin, Teresia The Role of Internal Audit, Control Policies, and Staff Training in Reducing Fraud Frequency: A Quantitative Approach. UNSPECIFIED.

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Abstract

This study explores the relationship between quality internal supervision and frequency of financial statement fraud and its impact on the integrity of financial reports, using a case study of PDAM in East Java. Using a quantitative approach, the research analyzes data from PDAMs in the region to assess how effective internal supervision can influence the frequency of financial statement fraud. Internal supervision is measured through indicators such as the frequency of internal audits, control policies andstaff training, while fraud frequency is assessed based on audit reports and fraud complaints. Partial Least Squares is used to analyze the relationships among latent variables with two stages: the Measurement and the Structural Model and hypothesis testing using bootstrapping to evaluate the significance of relationships with path coefficients. The findings show that while control measures and staff training levels have no discernible impact on fraud frequency, the frequency of internal audits has a considerable impact. These results highlight how crucial efficient internal oversight is to be lowering financial statement fraud and improving the quality of financial reports at PDAM in East Java.Keywords: Internal Supervision, Financial Statement Fraud, Control Effectiveness

Item Type:	Other
Depositing User:	Ismi Putri Merdekawati
Date Deposited:	29 Apr 2026 08:48
Last Modified:	29 Apr 2026 08:48
URI:	http://repository.stieyapan.ac.id/id/eprint/216

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