The Effect of Internal Control System, Leadership Style and Compensation System Toward Fraud Prevention
Bambang Leo Handoko1, Ang Swat Lin Lindawati2, Jennifer3
1Bambang Leo Handoko*, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
2Ang Swat Lin Lindawati, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
3Jennifer, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
Manuscript received on November 20, 2019. | Revised Manuscript received on November 26, 2019. | Manuscript published on 30 November, 2019. | PP: 3793-3798 | Volume-8 Issue-4, November 2019. | Retrieval Number: D7952118419/2019©BEIESP | DOI: 10.35940/ijrte.D7952.118419
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In internal control, one of the elements is the control environment, where in the control environment there is the term strong tone at the top. This term means that when a leader can lead well and become a role model for his subordinates, then it can strengthen internal control and prevent fraud. One of the causes of fraud is suspected is employee dissatisfaction with the company. Things that are sensitive to employees are payroll or compensation issues. The purpose of this study was to determine the effect of internal control systems, leadership styles and compensation systems on fraud prevention. This research was conducted at Pulp and Papers Company; which is engaged in oil palm using quantitative methods and questionnaire data collection techniques. This research was given to 235 respondents. Data processing is performed using the SPSS program by using several types of tests. The results of this study indicate that the internal control system does not influence while the leadership style and compensation system can influence fraud prevention. On simultaneous test, we have result that of the three variables x influence fraud prevention.
Keywords: Internal Control, Leadership, Compensation, System, Fraud, Prevention.
Scope of the Article: Signal Control System & Processing.