Acceso usuarios
Danny Ivan Rantung
, Nouke Sysca Oroh, Ika Prayanthi
Purpose: There is very little empirical research on fraud in non-profit organization. Previous researchers have conducted, and the results are mixed and inconsistent. Only a few models link several variables that have been previously proven to be related to one another. The purpose of this study is to combine the relationships of several variables to examine whether individual morality, effectiveness of internal control and compensation suitability have a significant effect on unethical behavior and its impact also to accounting fraud tendencies in nonprofit organization context.
Theoretical framework: This research is based on several theories, namely the theory of moral development, the theory of attribution, the theory of hope and the theory of cheating. Some empirical research also provides varying results. The new model in this study links several variables that have been previously proven to be related to one another.
Design/methodology/approach: The research design used is descriptive research using quantitative survey as a data collection method and a structural equation model (SEM) for the data analysis process. The population in this study were all permanent employees working in the office of the Seventh-day Adventist Church, especially in the conference/mission, namely those working as officers, heads of departments and employees working in the finance department. Using convenient sample method, the sample in this study amounted to 156 respondents taken proportionally represent each region of conference, or mission spread in East Indonesia.
Findings: The result of this study found that effectiveness of internal control had a significant positive effect on unethical behavior, appropriateness of compensation had a significant negative effect on unethical behavior and unethical behavior had a significant positive effect on accounting fraud tendencies. For individual morality variables, the effectiveness of internal controls and appropriateness of compensation do not have a significant effect on unethical behavior, as well as the effectiveness of internal controls do not have a significant effect on the tendency of accounting fraud.
Research, Practical & Social implications: This research contributes to a non-profit organization, in this case the religious organization of the Seventh-day Adventist Church, especially in the Eastern Indonesia region. The results of the study show that organizations need to pay attention to the appropriate compensation variable because it has a significant negative effect on the tendency of accounting fraud. Besides that, because the results of the study show that unethical behavior has a significant positive effect on the tendency of accounting fraud, it is necessary to minimize unethical behavior so that an increase in unethical behavior will increase the tendency of accounting fraud. Originality/value: The new model in this study links several variables that have been previously proven to be related to one another.
