Professional ethical awareness: An approach in detecting public sector fraud

Abstract

Fraud practice is an extraordinary crime that has an impact on the loss of integrity that has a direct impact on oneself and society overall. This research was conducted in order to present a perspective in preventing fraud not only preventive or corrective processes but also detective processes. The benefits of this research are expected to be able to build character, behavior and ethical behavior that lead to moral integrity and honesty values. The research methodology used is a descriptive and explanatory analysis survey of the Public Sector Internal Auditors at the district/city Inspectorate in West Java Province with the technique Data analysis used is multiple regression analysis. In this study, the independent variable is ethical awareness with indicators of ethical principles and rules of behavior; while the dependent variable is Auditor Performance with indicators of Accountability, Independent and Objectives. The results of this study indicate that the Internal Auditor's Ethical Awareness with the Principles of Ethics and Behavior Rules has a significant influence on the performance of the public sector Internal Auditors partially or simultaneously. This research implies that professional ethical awareness of internal auditors can preventively detect fraud in the public sector, especially in the early detection of various fraudulent financial statements.