FACTORS AFFECTING THE GOVERNMENT PROCUREMENT FRAUD: THE INDEPENDENT AUDITOR’S POINT OF VIEW EVIDENCE FROM INDONESIA

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Zulaikha, Imam Ghozali, Paulus T. Hadiprajitno

DOI:10.22495/cbv12i3art7

Abstract

The objective of this study was examining the factors affecting the government procurement fraud. Based on the fraud triangle and the theory of planned behavior, this study proposed seven hypothesis, those are tested by regression analysis. This study used primary data gathered by surveys to members of The Boards of the Republic Indonesia- Financial Auditors, who act as external auditors for the Government. They were asked to assess factors influencing the government procurement of goods and services fraud. There were 297 auditors of the Boards that participated in this survey. The result showed that the procurement frauds were influenced by the lack of procurement committee quality, the weakness of procurement control, and the intentions to engage fraud. The intentions to engage fraud were significantly influenced by the attitude toward fraud, subjective norms, and the perceived behavioral control. Furthermore, other elements of fraud triangle, the financial pressure, did not influence to the procurement fraud.

Keywords: Procurement Fraud, The Attitudes, Subjective Norms, Perceived Behavioral Control, Intentions To Engage Fraud, Fraud Behavior

How to cite this paper: Zulaikha, Ghozali, I., & Hadiprajitno, P. T. (2016). Factors affecting the government procurement fraud: The independent auditor’s point of view. Evidence from Indonesia. Corporate Board: role, duties and composition, 12(3), 61-68. http://doi.org/10.22495/cbv12i3art7