The Influence of Internal Audit, Internal Control And Quality of Accounting Information System in Fraud Prevention Efforts

Abstract

This study investigates the impact of internal audits, internal controls, and accounting information systems (AIS) on employee fraud prevention within PT. Amartha Mikro Fintek in Banyuwangi, a microfinance institution focusing on providing loans to rural entrepreneurs. Fraud, often perpetrated by employees, poses a significant challenge to organizational integrity and financial stability. The research employs a quantitative approach with a population of 54 employees, utilizing primary data collected through structured questionnaires and secondary data from internal reports. Statistical tools such as multiple linear regression were used to analyze the data. The findings reveal that internal audits significantly influence the prevention of employee fraud, highlighting the importance of systematic evaluations in identifying irregularities. However, internal controls and AIS were found to have no direct individual impact on fraud prevention. When assessed simultaneously, internal audits, internal controls, and AIS collectively demonstrate a significant effect in reducing fraudulent activities, emphasizing the necessity of their integration for effective fraud prevention. The study concludes that a combined approach involving rigorous internal audits, enhanced internal controls, and reliable AIS can create a robust framework to mitigate fraud risks and improve organizational governance. This research contributes to the understanding of fraud prevention mechanisms within financial institutions and offers practical insights for enhancing anti-fraud strategies. It underscores the importance of aligning operational processes with ethical standards and continuous improvement to maintain financial integrity and trust