THE APPLICATION OF INTERNAL CONTROLS ON FINANCIAL STATEMENT FRAUD IN THE BANKING SECTORS

Authors

  • Denpharanto Agung Krisprimandoyo Magister of Management, Universitas Ciputra, Indonesia
  • Sri Setyo Iriani Department of Management, Faculty of Economics, Universitas Negeri Surabaya, Indonesia
  • Rida Perwita Sari Universitas Pembangunan Nasional "Veteran" Jawa Timur, Indonesia

Keywords:

internal control, COSO, fraudulent financial statement, banking sectors

Abstract

This study is to examine the application of internal control promulgated by COSO on the occurrence of fraudulent financial statement in the banking sectors. To satisfy our intellectual curiosity we distributed questionnaires to employees working in the banking sector. We tested the components of internal control on their relations to the occurrence of fraudulent financial statement using two step processes. Initially we tested them partially, then simultaneously to such a kind of lawsuit. The results shows a consistency on both tests, suggesting that internal control has a negative and significant relationship to the occurrence of fraudulent financial. This study supports the legitimacy that internal control promulgated by COSO can be one of effective fraud deterrents on the occurrence of fraudulent financial statement.

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Published

2022-08-12

How to Cite

Krisprimandoyo, D. A., Iriani, S. S., & Sari, R. P. (2022). THE APPLICATION OF INTERNAL CONTROLS ON FINANCIAL STATEMENT FRAUD IN THE BANKING SECTORS. Accounting, Organization & Economics, 2(1), 115-125. Retrieved from https://fortunepublishing.org/index.php/aoe/article/view/133

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Articles