Moderating Effect of Religiosity on the Relationship between Fraud Diamond and Accounting Fraud: Study on the Banking Sector of Indonesia
Abstract
Objective – This study examines and analyzes the effect of fraud diamond on accounting fraud, with religiosity as the moderator, among management staff in the banking sector of Indonesia.
Design/methodology – This study uses the primary data taken from a survey conducted on the employees and officials of 82 Regional Development Bank offices in Southeast Sulawesi, Indonesia. This study uses purposive sampling technique and 279 people were selected as respondents. This study applies quantitative method and uses 2 analysis techniques, multiple regression analysis and moderated regression analysis.
Results – This study finds that the higher the pressure, opportunity, rationalization, and the capability at the workplace are, the higher the likelihood of accounting fraud to occur. Further, the result of moderation regression analysis indicates that religiosity weakens the effects of pressure and rationalization on accounting fraud, but it does not moderate the influence of opportunity and capability on accounting fraud.
Research limitations/implications – Company leaders and staff to better understand personal and situational (organizational) factors—such as pressure, opportunity, rationalization, and capabilities—that can affect individuals to avoid accounting fraud behavior.
Novelty/Originality – This paper presents the cases of accounting fraud caused by internal company parties and accounting fraud problems involving directors, managers, and employees. In this case, the aspects of pressure, opportunity, rationalization, and capability can be considered predictors of what affect individuals to commit accounting fraud. This is to reduce accounting fraudulence in the company. This claim is supported by those who are highly religious and are able to suppress fraudulent behaviors.Keywords
Full Text:
PDFReferences
Abdullahi, R., & Mansor, N. (2018). Fraud prevention initiatives in the Nigerian public sector: understanding the relationship of fraud incidences and the elements of fraud triangle theory. Journal of Financial Crime, 25(2), 527–544.
Albrecht, W. S., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2018). Fraud examination. Cengage Learning.
Amalia, U. T., & Nurkhin, A. (2019). Dimensi Diamond Fraud dan penggunaan smartphone terhadap academic fraud dengan religiusitas sebagai variabel moderasi. Economic Education Analysis Journal, 8(1), 1–17.
Aprianti, N. W. T., Kusumawati, N. P. A., & Pratiwi, N. P. T. W. (2022). Pengaruh bystander effect, ketaatan aturan akuntansi dan religiusitas terhadap kecenderungan kecurangan akuntansi. Hita Akuntansi Dan Keuangan, 3(2), 129–133.
Apsari, A. K., & Suhartini, D. (2021). Religiosity as Moderating of Accounting Student Academic Fraud with a Hexagon Theory Approach. Accounting and Finance Studies, 1(3), 212–231.
Asmah, A. E., Atuilik, W. A., & Ofori, D. (2020). Antecedents and consequences of staff related fraud in the Ghanaian banking industry. Journal of Financial Crime, 27(1), 188–201.
Avortri, C., & Agbanyo, R. (2021). Determinants of management fraud in the banking sector of Ghana: the perspective of the diamond fraud theory. Journal of Financial Crime, 28(1), 142–155.
Bachtiyar, M. N. (2020). Analisis Pengaruh Dimensi Fraud Diamond Terhadap Kecurangan Akademik dengan Religiusitas Sebagai Variabel Moderasi. STIE Perbanas Surabaya.
Bandura, A. (1989). Human agency in social cognitive theory. American Psychologist, 44(9), 1175.
Beasley, M. S., Hermanson, D. R., Carcello, J. V, & Neal, T. L. (2010). Fraudulent financial reporting: 1998-2007: An analysis of US public companies.
Bonsu, O.-A. M., Dui, L. K., Muyun, Z., Asare, E. K., & Amankwaa, I. A. (2018). Corporate fraud: causes, effects, and deterrence on financial institutions in Ghana. European Scientific Journal, 14(28), 315–335.
Boyatzis, R. E. (2001). How and why individuals are able to develop emotional intelligence. The Emotionally Intelligent Workplace: How to Select for, Measure, and Improve Emotional Intelligence in Individuals, Groups, and Organizations, 1, 234–253.
Budiartini, K., Dewi, G. A. R. S., & Herawati, N. T. (2019). Faktor-Faktor yang Mempengaruhi Terjadinya Kecurangan Akuntansi dalam Perspektif Fraud Diamond (Studi Empiris pada Bank Perkreditan Rakyat (BPR) Kabupaten Buleleng). JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, 10(2), 113–123.
Faisol, A., & Gamayuni, R. R. (2018). he Effect of Good University Governance, Effectiveness of Internal Controlling System, and Obedience of Accounting Regulation on the Tendency of Fraud in PTKIN-BLU. Research Journal of Finance and Accounting, 9(4), 105–112.
Furseth, I., & Repstad, P. (2017). An introduction to the sociology of religion: classical and contemporary perspectives. Routledge.
Ghanem, K. A., & Castelli, P. A. (2019). Accountability and moral competence promote ethical leadership. The Journal of Values-Based Leadership, 12(1), 11.
Gunayasa, I. M. R., & Erlinawati, N. W. A. (2020). Pengaruh Moralitas Individu, Religiusitas Dan Bystander Effect Terhadap Kecenderungan Kecurangan Akuntansi (Fraud). Hita Akuntansi Dan Keuangan, 1(1), 650–680.
Hariyanto, W., Rini, D. D. O., & Margianawati, D. (2018). Pengaruh dimensi fraud diamond terhadap perilaku kecurangan akademik mahasiswa akuntansi yang dimoderasi religiusitas.
Hidajat, T. (2020). Rural banks fraud: a story from Indonesia. Journal of Financial Crime, 27(3), 933–943.
Istifadah, R. U., & Senjani, Y. P. (2020). Religiosity as the moderating effect of diamond fraud and personal ethics on fraud tendencies. Journal of Islamic Accounting and Finance Research, 2 (1), 91, 116.
Kazemian, S., Said, J., Hady Nia, E., & Vakilifard, H. (2019). Examining fraud risk factors on asset misappropriation: evidence from the Iranian banking industry. Journal of Financial Crime, 26(2), 447–463.
Pamungkas, I. D., Ghozali, I., Achmad, T., Khaddafi, M., & Hidayah, R. (2018). Corporate governance mechanisms in preventing accounting fraud: A study of fraud pentagon model. Journal of Applied Economic Sciences, 13(2), 549–560.
Putri, P. A. A., & Irwandi, S. A. (2017). The determinants of accounting fraud tendency. The Indonesian Accounting Review, 6(1), 99–108.
Rahmatullah, N., & Irianto, G. (2018). The Effects Of Intellegence Quotient. Emotional Quotient, And Spritual Quotient On The Tendency Of Accounting Fraud, 7(9), 212–216.
Said, J., Alam, M. M., Karim, Z. A., & Johari, R. J. (2018). Integrating religiosity into fraud triangle theory: findings on Malaysian police officers. Journal of Criminological Research, Policy and Practice.
Said, J., Alam, M. M., Ramli, M., & Rafidi, M. (2017). Integrating ethical values into fraud triangle theory in assessing employee fraud: Evidence from the Malaysian banking industry. Journal of International Studies, 10(2), 170–184.
Suh, J. B., Nicolaides, R., & Trafford, R. (2019). The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions. International Journal of Law, Crime and Justice, 56, 79–88.
Sunardi, S., & Amin, M. N. (2018). Fraud detection of financial statement by using fraud diamond perspective. International Journal of Development and Sustainability, 7(3), 878–891.
Talib, D. C. (2021). Pengaruh Fraud Diamond Theory dan GONE Theory terhadap Tindak Kecurangan yang Dimoderasi Religiusitas. Universitas Hasanuddin.
Vacumi, N., & Halmawati, H. (2022). Pengaruh Religiusitas dan Machiavellian terhadap Kecenderungan Kecurangan Akuntansi. Jurnal Eksplorasi Akuntansi, 4(3), 563–573.
Van Driel, H. (2018). Financial fraud, scandals, and regulation: A conceptual framework and literature review. Business History.
Wolfe, D. T., & Hermanson, D. R. (2004). ‘The Fraud Diamond : Considering the Four Elements of Fraud: Certified Public Accountant’, The CPA Journal, 74(12), pp. 38–42.
Yurmaini, Y. (2017). Accounting Fraud (Fraud Accounting) in Islamic Perspective. Journal of Accounting and Business
DOI: https://doi.org/10.24815/jaroe.v6i3.33772
Article Metrics
Abstract view : 0 timesPDF - 0 times
Refbacks
- There are currently no refbacks.
Published by:
Accounting Department
Economics and Business Faculty
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
E-ISSN: 2621-1041
Journal of Accounting Research, Organization and Economics by Accounting Department of Economics and Business Faculty of Syiah Kuala University is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.unsyiah.ac.id/JAROE/index.