The Consequence of Whistleblowing System and Internal Control toward Fraud Prevention: A Study on Indonesian State Owned Enterprise
This research aims to analyze the influence of whistleblowing systems and internal control on fraud prevention on Indonesian State Owned Enterprise (SOEs). This study uses whistleblowing system and internal control as independent variables, while fraud prevention as the dependent variable. Population in this research is employed who were the internal audit, whistleblower, and other department related to fraud in SOEs Indonesia. The researcher used Solvin’s method of determining sample size. There were 62 respondents sampled out of a population of 122. Furthermore, the data were analyzed utilizing multiple regressions. The results show that the application of the whistleblowing system, internal control and fraud prevention at Indonesian SOEs is in a reasonably good category. And the whistleblowing system and internal control possess significant effects on fraud prevention. It indicates that performing fraud can be prevented by establishing a reliable internal control and increasing whistleblowing system to all parties in the organization.