Main Article Content
Abstract
The present study aims to examine the effect of human resource competence, ethical behavior, and work motivation on the prevention of financial reporting fraud moderated by whistleblowing systems. Primary data were garnered from banks in Pekalongan, Central Java, Indonesia. This study employed a moderation regression analysis with an interaction testing. Study findings reveal that human resource competence and work motivation give a significant effect on the prevention of financial reporting fraud, while ethical behavior had no significant effect on the prevention of financial reporting fraud. In addition, whistleblowing systems strengthened both the negative effect of human resource competence on the prevention of financial reporting fraud and the positive effect of ethical behavior on the prevention of financial reporting fraud. Nonetheless, the whistleblowing system did not moderate work motivation toward the prevention of financial reporting fraud. The control variable, i.e., reward and punishment, showed a significant impact on the prevention of financial reporting fraud. The study concludes with some empirical evidence for how banking management fosters the whistleblowing system to prevent financial reporting fraud.
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References
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- Albrecht, W. S. (2009). Fraud Examination (Fourth Edi). Ohio: Cengage Learning.
- Alfian, N., Subhan, S., & Rahayu, R. P. (2018). Penerapan Whistleblowing System Dan Surprise Audit Sebagai Strategi Anti Fraud Dalam Industri Perbankan. Jurnal Akuntansi Muhammadiyah, 8(2). https://doi.org/10.37598/jam.v8i2.573
- Arens, A. A., Elder, R. J., & Beasley, M. S. (2008). Auditing dan Jasa Assurance: Pendekatan Terintegrasi (Terjemahan Herman Wibowo). Jakarta: Penerbit Erlangga.
- Awang, Y., Ismail, S., & Abdul Rahman, A. R. (2016). Measuring the Potential for Financial Reporting Fraud in a Highly Regulated Industry. International Journal of Accounting and Business Society, 24(1), 81–98.
- De Cremer, D., & Vandekerckhove, W. (2017). Managing unethical behavior in organizations: The need for a behavioral business ethics approach. Journal of Management and Organization, 23(3), 437–455. https://doi.org/10.1017/jmo.2016.4
- Desai, N. (2020). Understanding the Theoretical Underpinnings of Corporate Fraud. Vikalpa: The Journal for Decision Makers, 45(1), 25–31. https://doi.org/10.1177/0256090920917789
- Djamal, V. A. Y., Pikir, T. W., & Wardani, R. P. (2019). The Influence of the Characteristics of Whistleblower to Whistleblowing Intentions. Journal of Accounting and Strategic Finance, 2(1), 56–69. https://doi.org/10.33005/jasf.v2i1.47
- Elimanto, L. S., & Mulia, T. W. (2016). Pengaruh Reward, Profesionalisme Profesi, dan Moral Terhadap Intensitas Auditor Internal Melakukan Whistleblowing. Jurnal Akuntansi Kontemporer, 8(1), 33–52. Retrieved from http://journal.wima.ac.id/index.php/JAKO/article/view/2579
- Exmeyer, P. C. (2020). Inside Job: Exploring the Connection Between Whistleblowing and Perceptions of Procedural Justice. Public Integrity, 22(1), 18–38. https://doi.org/10.1080/10999922.2018.1519687
- Fitriyah, R., & Maghviroh, R. El. (2019). Analysis of factors that affect internal whistle-blowing intentions. The Indonesian Accounting Review, 9(1), 59. https://doi.org/10.14414/tiar.v9i1.1675
- Ghozali, I., Achmad, T., & Pamungkas, I. D. (2019). Determinants of fraudulent financial reporting and whistleblowing system: Applying theory of planned behavior. WSEAS Transactions on Business and Economics, 16, 393–402.
- Governance, K. N. K. (2008). Pedoman sistem pelaporan pelanggaran-SPP (whistleblowing system –WBS).
- Houdek, P. (2020). Fraud and Understanding the Moral Mind: Need for Implementation of Organizational Characteristics into Behavioral Ethics. Science and Engineering Ethics, 26(2), 691–707. https://doi.org/10.1007/s11948-019-00117-z
- Hutapea, P., & Nurianna, T. (2008). Kompetensi Plus: Teori, Desain, Kasus dan Penerapan untuk HR dan Organisasi yang Dinamis. Jakarta: Gramedia Pustaka Utama.
- Kurniawan, A. (2015). Fraud di Sektor Publik dan Integritas Nasional. Yogyakarta: BPFE.
- Malisetty, S., Archana, R. V., & Kumari, K. V. (2017). Evaluating the impact of organisation ethical culture and ethical climate on deviant behaviour using ECQ. International Journal of Civil Engineering and Technology, 8(8), 217–231.
- Mangala, D., & Kumari, P. (2017). Auditors’ perceptions of the effectiveness of fraud prevention and detection methods. Indian Journal of Corporate Governance, 10(2), 118–142. https://doi.org/10.1177/0974686217738683
- Mangkunegara, A, P. (2015). Manajemen Sumber Daya Manusia. Bandung: Remaja Rosdakarya.
- Mohd, M. (2006). Akhlak, Moral, dan Etika. Jakarta: PT. Gramedia Pustaka Utama.
- Mustafa, G., & Ali, N. (2019). Rewards, autonomous motivation and turnover intention: Results from a non-Western cultural context. Cogent Business and Management, 6(1), 1–16. https://doi.org/10.1080/23311975.2019.1676090
- Nurharjanti, N. N. (2017). Persepsi Mahasiswa dalam Mengurangi Fraud Akademik: Whistleblowing Sistem. Jurnal Akuntansi Dan Bisnis, 17(1), 1. https://doi.org/10.20961/jab.v17i1.218
- Nwanyanwu, L. (2018). Accountants’ Ethics and Fraud Control in Nigeria: The Emergence of a Fraud Control Model. Journal of Accounting, Finance and Auditing Studies, 4(1), 108–129.
- Okafor, O. N., Adebisi, F. A., Opara, M., & Okafor, C. B. (2020). Deployment of whistleblowing as an accountability mechanism to curb corruption and fraud in a developing democracy. Accounting, Auditing and Accountability Journal, 33(6), 1335–1366. https://doi.org/10.1108/AAAJ-12-2018-3780
- Pamungkas, I. D., Ghozali, I., & Achmad, T. (2017). The effects of the whistleblowing system on financial statements fraud: Ethical behavior as the mediators. International Journal of Civil Engineering and Technology, 8(10), 1592–1598.
- Park, H., & Blenskinsoop, J. (2009). Whistleblowing as Planned Behaviour A Survey as South Korean Police Officer. Journal of Bussiness Ethics, 85, 545–556.
- Penelitian, J., Vol, A., Intention, W., & Graham, M. (2020). Analisis faktor-faktor yang memengaruhi whistleblowing intention menggunakan graham’s model 1 1, 1(1), 66–79.
- Purnamawati, I. G. A. (2018). Individual Perception of Ethical Behavior and Whistleblowing on Fraud Detection through Self-Efficacy. Jurnal Keuangan Dan Perbankan, 22(2), 362–372. https://doi.org/10.26905/jkdp.v22i2.1991
- Putri, C. M. (2012). Pengujian Keefektifan Model Whistleblowing: Pendekatan Eksperimen. Yogyakarta: Universitas Gajah Mada.
- Rehman, A. ur, Ali, T., Hussain, S., & Waheed, A. (2021). Executive remuneration, corporate governance and corporate performance: Evidence from China. Economic Research-Ekonomska Istrazivanja , 0(0), 1–26. https://doi.org/10.1080/1331677X.2020.1867214
- Rivai, V. (2005). Manajemen Sumber Daya Manusia untuk Perusahaan: Dari Teori ke Praktik. Jakarta.
- Sagara, Y. (2018). Profesionalisme Internal Auditor Dan Intensi Melakukan Whistleblowing. Liquidity, 2(1), 34–44. https://doi.org/10.32546/lq.v2i1.127
- Semendawai, A. H. Santoso, F. Wagiman, W. O. (2011). Understanding Whistleblowers. Jakarta: Witness and Victim Protection Agency (LPSK).
- Sijbom, R. B. L., Lang, J. W. B., & Anseel, F. (2019). Leaders’ achievement goals predict employee burnout above and beyond employees’ own achievement goals. Journal of Personality, 87(3), 702–714. https://doi.org/10.1111/jopy.12427
- Stubben, S. R., & Welch, K. T. (2020). Evidence on the Use and Efficacy of Internal Whistleblowing Systems. Journal of Accounting Research, 58(2), 473–518. https://doi.org/10.1111/1475-679X.12303
- Sujana, I. K., Suardikha, I. M. S., & Laksmi, P. S. P. (2020). Whistleblowing System, Competence, Morality, and Internal Control System Against Fraud Prevention on Village Financial Management in Denpasar. E-Jurnal Akuntansi, 30(11), 2780. https://doi.org/10.24843/eja.2020.v30.i11.p06
- Tarjo, T., Suwito, A., Aprillia, I. D., & Ramadan, G. R. (2019). Theory of planned behavior and whistleblowing intention. Jurnal Keuangan Dan Perbankan, 23(1), 43–57. https://doi.org/10.26905/jkdp.v23i1.2714
- Triantoro, H. D., Utami, I., & Joseph, C. (2020). Whistleblowing system, Machiavellian personality, fraud intention: An experimental study. Journal of Financial Crime, 27(1), 202–216. https://doi.org/10.1108/JFC-01-2019-0003
- Tuanakotta, T. M. (2010). Forensic accounting and investigative audits in the accounting department of the Indonesian faculty of economics. Faculty of Economics, University of Indonesia.
- Wahyuni, E. S., & Nova, T. (2019). Analisis Whistleblowing System dan Kompetensi Aparatur terhadap Pencegahan Fraud (Studi Empiris pada Satuan Organisasi Perangkat Daerah Kabupaten Bengkalis). Inovbiz: Jurnal Inovasi Bisnis, 6(2), 189. https://doi.org/10.35314/inovbiz.v6i2.867
- Yanti, H. B., Hasnawati, H., Astuti, C. D., & Kuncara, H. (2018). Kompetensi Moral dan Intensi Whistleblowing. Media Riset Akuntansi, Auditing & Informasi, 17(2), 131. https://doi.org/10.25105/mraai.v17i2.2074
References
Agusyani, N. K. S., Sujana, E., & Wahyuni, M. A. (2016). Pengaruh Whistleblowing System dan Kompetensi Sumber Daya Manusia Terhadap Pencegahan Fraud pada Pengelolaan Keuangan Penerimaan Pendapatan Asli Daerah (Studi pada Dinas Pendapatan Daerah Kabupaten Buleleng). E-Journal Akuntansi, 6(3), 1–10.
Albrecht, W. S. (2009). Fraud Examination (Fourth Edi). Ohio: Cengage Learning.
Alfian, N., Subhan, S., & Rahayu, R. P. (2018). Penerapan Whistleblowing System Dan Surprise Audit Sebagai Strategi Anti Fraud Dalam Industri Perbankan. Jurnal Akuntansi Muhammadiyah, 8(2). https://doi.org/10.37598/jam.v8i2.573
Arens, A. A., Elder, R. J., & Beasley, M. S. (2008). Auditing dan Jasa Assurance: Pendekatan Terintegrasi (Terjemahan Herman Wibowo). Jakarta: Penerbit Erlangga.
Awang, Y., Ismail, S., & Abdul Rahman, A. R. (2016). Measuring the Potential for Financial Reporting Fraud in a Highly Regulated Industry. International Journal of Accounting and Business Society, 24(1), 81–98.
De Cremer, D., & Vandekerckhove, W. (2017). Managing unethical behavior in organizations: The need for a behavioral business ethics approach. Journal of Management and Organization, 23(3), 437–455. https://doi.org/10.1017/jmo.2016.4
Desai, N. (2020). Understanding the Theoretical Underpinnings of Corporate Fraud. Vikalpa: The Journal for Decision Makers, 45(1), 25–31. https://doi.org/10.1177/0256090920917789
Djamal, V. A. Y., Pikir, T. W., & Wardani, R. P. (2019). The Influence of the Characteristics of Whistleblower to Whistleblowing Intentions. Journal of Accounting and Strategic Finance, 2(1), 56–69. https://doi.org/10.33005/jasf.v2i1.47
Elimanto, L. S., & Mulia, T. W. (2016). Pengaruh Reward, Profesionalisme Profesi, dan Moral Terhadap Intensitas Auditor Internal Melakukan Whistleblowing. Jurnal Akuntansi Kontemporer, 8(1), 33–52. Retrieved from http://journal.wima.ac.id/index.php/JAKO/article/view/2579
Exmeyer, P. C. (2020). Inside Job: Exploring the Connection Between Whistleblowing and Perceptions of Procedural Justice. Public Integrity, 22(1), 18–38. https://doi.org/10.1080/10999922.2018.1519687
Fitriyah, R., & Maghviroh, R. El. (2019). Analysis of factors that affect internal whistle-blowing intentions. The Indonesian Accounting Review, 9(1), 59. https://doi.org/10.14414/tiar.v9i1.1675
Ghozali, I., Achmad, T., & Pamungkas, I. D. (2019). Determinants of fraudulent financial reporting and whistleblowing system: Applying theory of planned behavior. WSEAS Transactions on Business and Economics, 16, 393–402.
Governance, K. N. K. (2008). Pedoman sistem pelaporan pelanggaran-SPP (whistleblowing system –WBS).
Houdek, P. (2020). Fraud and Understanding the Moral Mind: Need for Implementation of Organizational Characteristics into Behavioral Ethics. Science and Engineering Ethics, 26(2), 691–707. https://doi.org/10.1007/s11948-019-00117-z
Hutapea, P., & Nurianna, T. (2008). Kompetensi Plus: Teori, Desain, Kasus dan Penerapan untuk HR dan Organisasi yang Dinamis. Jakarta: Gramedia Pustaka Utama.
Kurniawan, A. (2015). Fraud di Sektor Publik dan Integritas Nasional. Yogyakarta: BPFE.
Malisetty, S., Archana, R. V., & Kumari, K. V. (2017). Evaluating the impact of organisation ethical culture and ethical climate on deviant behaviour using ECQ. International Journal of Civil Engineering and Technology, 8(8), 217–231.
Mangala, D., & Kumari, P. (2017). Auditors’ perceptions of the effectiveness of fraud prevention and detection methods. Indian Journal of Corporate Governance, 10(2), 118–142. https://doi.org/10.1177/0974686217738683
Mangkunegara, A, P. (2015). Manajemen Sumber Daya Manusia. Bandung: Remaja Rosdakarya.
Mohd, M. (2006). Akhlak, Moral, dan Etika. Jakarta: PT. Gramedia Pustaka Utama.
Mustafa, G., & Ali, N. (2019). Rewards, autonomous motivation and turnover intention: Results from a non-Western cultural context. Cogent Business and Management, 6(1), 1–16. https://doi.org/10.1080/23311975.2019.1676090
Nurharjanti, N. N. (2017). Persepsi Mahasiswa dalam Mengurangi Fraud Akademik: Whistleblowing Sistem. Jurnal Akuntansi Dan Bisnis, 17(1), 1. https://doi.org/10.20961/jab.v17i1.218
Nwanyanwu, L. (2018). Accountants’ Ethics and Fraud Control in Nigeria: The Emergence of a Fraud Control Model. Journal of Accounting, Finance and Auditing Studies, 4(1), 108–129.
Okafor, O. N., Adebisi, F. A., Opara, M., & Okafor, C. B. (2020). Deployment of whistleblowing as an accountability mechanism to curb corruption and fraud in a developing democracy. Accounting, Auditing and Accountability Journal, 33(6), 1335–1366. https://doi.org/10.1108/AAAJ-12-2018-3780
Pamungkas, I. D., Ghozali, I., & Achmad, T. (2017). The effects of the whistleblowing system on financial statements fraud: Ethical behavior as the mediators. International Journal of Civil Engineering and Technology, 8(10), 1592–1598.
Park, H., & Blenskinsoop, J. (2009). Whistleblowing as Planned Behaviour A Survey as South Korean Police Officer. Journal of Bussiness Ethics, 85, 545–556.
Penelitian, J., Vol, A., Intention, W., & Graham, M. (2020). Analisis faktor-faktor yang memengaruhi whistleblowing intention menggunakan graham’s model 1 1, 1(1), 66–79.
Purnamawati, I. G. A. (2018). Individual Perception of Ethical Behavior and Whistleblowing on Fraud Detection through Self-Efficacy. Jurnal Keuangan Dan Perbankan, 22(2), 362–372. https://doi.org/10.26905/jkdp.v22i2.1991
Putri, C. M. (2012). Pengujian Keefektifan Model Whistleblowing: Pendekatan Eksperimen. Yogyakarta: Universitas Gajah Mada.
Rehman, A. ur, Ali, T., Hussain, S., & Waheed, A. (2021). Executive remuneration, corporate governance and corporate performance: Evidence from China. Economic Research-Ekonomska Istrazivanja , 0(0), 1–26. https://doi.org/10.1080/1331677X.2020.1867214
Rivai, V. (2005). Manajemen Sumber Daya Manusia untuk Perusahaan: Dari Teori ke Praktik. Jakarta.
Sagara, Y. (2018). Profesionalisme Internal Auditor Dan Intensi Melakukan Whistleblowing. Liquidity, 2(1), 34–44. https://doi.org/10.32546/lq.v2i1.127
Semendawai, A. H. Santoso, F. Wagiman, W. O. (2011). Understanding Whistleblowers. Jakarta: Witness and Victim Protection Agency (LPSK).
Sijbom, R. B. L., Lang, J. W. B., & Anseel, F. (2019). Leaders’ achievement goals predict employee burnout above and beyond employees’ own achievement goals. Journal of Personality, 87(3), 702–714. https://doi.org/10.1111/jopy.12427
Stubben, S. R., & Welch, K. T. (2020). Evidence on the Use and Efficacy of Internal Whistleblowing Systems. Journal of Accounting Research, 58(2), 473–518. https://doi.org/10.1111/1475-679X.12303
Sujana, I. K., Suardikha, I. M. S., & Laksmi, P. S. P. (2020). Whistleblowing System, Competence, Morality, and Internal Control System Against Fraud Prevention on Village Financial Management in Denpasar. E-Jurnal Akuntansi, 30(11), 2780. https://doi.org/10.24843/eja.2020.v30.i11.p06
Tarjo, T., Suwito, A., Aprillia, I. D., & Ramadan, G. R. (2019). Theory of planned behavior and whistleblowing intention. Jurnal Keuangan Dan Perbankan, 23(1), 43–57. https://doi.org/10.26905/jkdp.v23i1.2714
Triantoro, H. D., Utami, I., & Joseph, C. (2020). Whistleblowing system, Machiavellian personality, fraud intention: An experimental study. Journal of Financial Crime, 27(1), 202–216. https://doi.org/10.1108/JFC-01-2019-0003
Tuanakotta, T. M. (2010). Forensic accounting and investigative audits in the accounting department of the Indonesian faculty of economics. Faculty of Economics, University of Indonesia.
Wahyuni, E. S., & Nova, T. (2019). Analisis Whistleblowing System dan Kompetensi Aparatur terhadap Pencegahan Fraud (Studi Empiris pada Satuan Organisasi Perangkat Daerah Kabupaten Bengkalis). Inovbiz: Jurnal Inovasi Bisnis, 6(2), 189. https://doi.org/10.35314/inovbiz.v6i2.867
Yanti, H. B., Hasnawati, H., Astuti, C. D., & Kuncara, H. (2018). Kompetensi Moral dan Intensi Whistleblowing. Media Riset Akuntansi, Auditing & Informasi, 17(2), 131. https://doi.org/10.25105/mraai.v17i2.2074