THE EFFECT OF ACCOUNTING INFORMATION SYSTEMS, INTERNAL CONTROLS, AND INDIVIDUAL MORALITY ON THE PREVENTION OF ACCOUNTING FRAUD

Abstract

This study aims to prove and analyze the influence of accounting information systems, internal controls, and individual morality on the prevention of accounting fraud in MSMEs in Pekanbaru City. The method used in this study is descriptive quantitative with the type of data used being primary data and research instruments in the form of questionnaires used to obtain data on MSMEs in Pekanbaru City, Riau Province. The relationship between variables was tested using the PLS (Partial Least Square) program SmartPLS 4. The results showed that the independent variables of accounting information systems, internal controls, and individual morality had an effect on the prevention of accounting fraud in MSMEs in Pekanbaru City. The limitations of this study began with the geographical scope, which was still limited to the city of Pekanbaru. Furthermore, the research variables only tested three independent variables against one dependent variable. In addition, research that only uses a quantitative approach is considered incapable of capturing the subjective nuances of respondents, in this case MSME business actors. Finally, the cross-sectional research design only represents perceptions and conditions at a certain time or moment, so it is not yet able to explain changes in perceptions related to accounting fraud prevention efforts that may occur over time.