Moderation of spiritual intelligence: Machiavellian personality, ethical organizational culture and whistleblowing system on fraud intention

Authors

  • Ida Ayu Surya Maharani Udayana University, Denpasar, Indonesia
  • I Gusti Ngurah Agung Suaryana Udayana University, Denpasar, Indonesia
  • I Gusti Ayu Nyoman Budiasih Udayana University, Denpasar, Indonesia
  • Komang Ayu Krisnadewi Udayana University, Denpasar, Indonesia

Keywords:

Machiavellian Personality, Organizational Ethical Culture, Whistleblowing system, Spiritual Intelligence, Fraud Intention

Abstract

This study aims to explore personal and organizational factors in auditors' intention to commit accounting fraud through Machiavellian personality, organizational ethical culture and Whistleblowing system with spiritual intelligence moderation. The Fraud Hexagon Theory is considered effective in detecting the possibility of fraud and the tendency of fraud that is motivated by personal and organizational factors. Therefore, the researcher tested several factors including Machiavellian personality, organizational ethical culture and Whistleblowing system with spiritual intelligence moderation in mitigating the intention to commit fraud. Data obtained through submitting questionnaires to auditors working at the BPK RI Representative Office of Bali Province. With the increasing cases of corruption involving BPK auditors in issuing opinions related to bribery cases, it shows that there is great potential in the auditor environment at BPK in committing accounting fraud. This research model was tested using the SEM-PLS (Structural Equation Modelling Partial Least Square) method. The results of the study indicate that personal factors in the form of Machiavellian will have a significant impact on the intention to commit fraud. In addition, the ethical culture of the organization and the Whistleblowing system can reduce the intention to commit fraud. And the existence of spiritual intelligence moderation can direct auditors to act responsibly.

Downloads

Download data is not yet available.

References

Acfe. (2016). Report To The Nation On Occupational Fraud And Abuse. Austin, Texas: Association Of Certified Fraud Examiners.

Ajzen, I. (1991). The Theory Of Planned Behavior. Organizational Behavior And Human Decision Processes, 50(2), 179-211.

Ajzen, I. (2005). E-Book: Attitudes, Personality And Behaviour. Mcgraw-Hill Education (Uk).

Aprimulki, E. (2017). Pengaruh Konflik Peran, Kelebihan Peran, Independensi, Dan Kompetensi Terhadap Kinerja Auditor Dengan Kecerdasan Spiritual Sebagai Variabel Moderasi (Studi Empiris Pada Kantor Akuntan Publik Pekanbaru Dan Padang). Jom Fekon, 4(1), 3124–3138. Www.Pppk.Kemenkeu.Go.Id

Ariati K, K., & Raharja. (2014). Pengaruh Kompetensi Auditor Terhadap Kualitas Audit Dengan Kecerdasan Spiritual Sebagai Variabel Moderating (Studi Persepsi Auditor Pada Badan Pengawasan Keuangan Dan Pembangunan Provinsi Jawa Tengah). Diponegoro Journal Of Accounting, 487–495.

Bali.bpk.go.id. (n.d.). Bidang Tugas Pemeriksaan _ BPK RI Perwakilan Provinsi BALI.

Dewi, P. P., Ramantha, I. W., & Rasmini, N. K. (2015). Pengaruh Pengalaman, Orientasi Etika, Komitmen Dan Budaya Etis Organisasi Pada Sensitivitas Etika Auditor Badan Pengawasan Keuangan Dan Pembangunan Perwakilan Provinsi Bali. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 4(Februari), 841–866.

Estikasari, I. P., & Priyo Hari Adi. (2019). Ketaatan Akuntansi, Kontrol Atasan, Budaya Etis Organisasi, Penegakan Hukum dan Kecurangan Akuntansi. Jurnal Riset Akuntansi & Perpajakan (JRAP), 6(02), 1–12. https://doi.org/10.35838/jrap.v6i02.791

Handoko, B. L., & Tandean, D. (2021). An Analysis of Fraud Hexagon in Detecting Financial Statement Fraud (Empirical Study of Listed Banking Companies on Indonesia Stock Exchange for Period 2017-2019). ACM International Conference Proceeding Series, 93–100. https://doi.org/10.1145/3457640.3457657

Hanifah, I. A., & Clyde, V. (2022). The Effect of Whistlebowing System toward Fraud Prevention: Mediation of Forensic and Investigative Audit. AFRE (Accounting and Financial Review), 5(2), 97–105. https://doi.org/10.26905/afr.v5i2.7530

Irawan, N. A. (2023). 4 Kasus Suap Auditor BPK Demi Meraih Opini Wajar Tanpa Pengecualian, Paling Anyar Terjadi di Riau. In RiauAkses. https://www.riauakses.com/berita/1576/4-kasus-suap-auditor-bpk-demi-meraih-opini-wajar-tanpa-pengecualian-paling-anyar-terjadi-di-riau?page=1

Kalau, A. A. (2020). The Role of Spiritual Intelligence in Moderating the Relationship between Auditor competency on Audit Quality. The International Journal of Business Management and Technology, 4(6), 167–175.

Khusnah, H., & Agustina, H. (2019). Dampak Mediasi Moral Reasoning Pada Pengaruh Organizational Ethical Culture Terhadap Kecenderungan Kecurangan Akuntansi. Accounting and Management Journal, 3(2), 69–76. https://doi.org/10.33086/amj.v3i2.1403

Khusnah, H., & Soewarno, N. (2022). Mediation Effects of Moral Reasoning and Integrity in Organizational Ethical Culture on Accounting Fraud Prevention. ABAC Journal, 42(4).

Listya, K., Yahya, I., & Abu Bakar, E. (2018). The Factors Which Influence Accounting Students Understanding with Spiritual Intelligence as Moderating Variable (An Empirical Study on the student of USU, UNIMED, and UINSU). 46(Ebic 2017), 169–175. https://doi.org/10.2991/ebic-17.2018.27

Mahdi, S. A. R., Djaelani, Y., Suwito, & Buamonabot, I. (2021). Determinants of fraud prevention with spiritual intelligence as moderator. Estudios de Economia Aplicada, 39(12). https://doi.org/10.25115/eea.v39i12.6004

Mahmoudi, F., & Bagheri Majd, R. (2021). The effect of lean culture on the reduction of academic corruption by the mediating role of positive organizational politics in higher education. International Journal of Educational Development, 80(May 2020), 102319. https://doi.org/10.1016/j.ijedudev.2020.102319

Meiryani, Daniel, Huang, S. M., Lindawati, A., Wahyuningtias, D., Purnomo, A., Winoto, A., & Fahlevi, M. (2023). Systematic Literature Review on Implementation of Whistleblowing System in Preventing Financial Accounting Fraud. Journal of Theoretical and Applied Information Technology, 101(9), 3305–3315.

Mursalim, M., Su, M., Ahmad, H., & Hajering, H. (2021). Point of View Research Accounting and Auditing Whistleblowing’s effectiveness in preventing fraud through forensic audit and investigative audit. Point of View Research Accounting and Auditing, 2(1), 81–91. https://journal.accountingpointofview.id/index.php/povraa

Ningsih, K. R. R., & Budiartha, K. (2022). Budaya Catur Purusa Artha Memoderasi Love of Money dan Sifat Machiavellian, Terhadap Indikasi Fraud. E-Jurnal Akuntansi, 32(7), 1812. https://doi.org/10.24843/eja.2022.v32.i07.p11

Oriade, A., Osinaike, A., Aduhene, K., & Wang, Y. (2021). Sustainability awareness, management practices and organisational culture in hotels: Evidence from developing countries. International Journal of Hospitality Management, 92(September 2020), 102699. https://doi.org/10.1016/j.ijhm.2020.102699

Parasitic, N. P. E., Wirakusuma, M. G., & Muliartha, K. (2019). The Influence of Machiavellian Character, Love of Money Against Decision of Ethical Auditors with Manacika Parisudha as Moderating Variables (Empirical Study on BPK RI Province of Bali). International Journal of Siences: Basic and Applied Research (IJSBAR), 48(4), 178–187.

Prawitasari, P. P., Suardikha, I. M. S., Sari, M. M. R., & Putra, I. N. W. A. (2018). Tri Hita Karana Culture as a Moderate Influence of Public Accounting Firm Competition and Machiavellian Personality on the Auditor Independence. International Journal of Sciences: Basic and Applied Research (IJSBAR), 41, 1–24.

Purnamasari, P. P. D., Sari, M. M. R., Sukartha, I. M., & Gayatri. (2021). Religiosity as a moderating variable on the effect of love of money, machiavellian and equity sensitivity on the perception of tax evasion. Accounting, 7(3), 545–552. https://doi.org/10.5267/j.ac.2021.1.004

Putu, I. K. S., Rasmini, N. K., Budiartha, I. K., & Widanaputra, A. A. G. P. (2020). The mediating effect of auditor dysfunctional behavior on machiavellian character and time budget pressure of audit quality. Accounting, 6(6), 1093–1102. https://doi.org/10.5267/j.ac.2020.7.009

Rachmawati, D. I., Yuniarti, D., & Nohe, D. A. (2015). Model Regresi Variabel dengan Metode Selisih Mutlak Moderating Variable Regression Model with an Absolute Difference Method. Jurnal Eksponensial, 6(2), 187–192.

Rafiyadi, A., 1, Kartini, 2, & and Asri Usman. (2020). Spiritual Intelligence As A Moderating Effect On The Competence And Professional Skepticism Of Auditors On Fraud Detection (Study at the West Sulawesi BPKP Office). Www.Globalscientificjournal.Com, 08(10), 1784–1790. http://www.albayan.ae

Rahmawati. (2020). Bupati Meranti Diduga Suap Auditor BPK Riau Rp 1,1 Miliar agar Dapat Status WTP. In Kompas.com (Issue July, pp. 1–23). https://nasional.kompas.com/read/2023/04/08/07352141/bupati-meranti-diduga-suap-auditor-bpk-riau-rp-11-miliar-agar-dapat-status%0A

Ramadhani, M. A., & Trisnaningsih, S. (2023). Analysis of The Role Whistleblowing System For Fraud Pervention: Theory of Planned Behavior. International Journal of Management Science and Information Technology (IJMSIT), 3(1), 16–20.

Republika. (2023). ICW: 23 Auditor BPK Terlibat Kasus Suap dalam Dua Tahun Terakhir | Republika Online. https://www.republika.co.id/berita/oqlp6x377/icw-23-auditor-bpk-terlibat-kasus-suap-dalam-dua-tahun-terakhir

Sharma, S., Durand, R. M., & Gur-Arie, O. (1981). Identification and Analysis of Moderator Variables. Journal of Marketing Research, 18(3), 291. https://doi.org/10.2307/3150970

Suh, J. B., Shim, H. S., & Button, M. (2018). Exploring the impact of organizational investment on occupational fraud: Mediating effects of ethical culture and monitoring control. International Journal of Law, Crime and Justice, 53(February), 46–55. https://doi.org/10.1016/j.ijlcj.2018.02.003

Triantoro, H. D., Utami, I., & Joseph, C. (2020). Whistleblowing system, Machiavellian personality, fraud intention: An experimental study. Journal of Financial Crime, 27(1), 202–216. https://doi.org/10.1108/JFC-01-2019-0003

Urumsah, D., Wicaksono, A. P., & Pratama, A. J. P. (2016). Melihat jauh ke dalam: Dampak kecerdasan spiritual terhadap niat melakukan kecurangan. Jurnal Akuntansi & Auditing Indonesia, 20(1), 48–54. https://doi.org/10.20885/jaai.vol20.iss1.art5

Utami, I., Wijono, S., Noviyanti, S., & Mohamed, N. (2019). Fraud diamond, Machiavellianism and fraud intention. International Journal of Ethics and Systems, 35(4), 531–544. https://doi.org/10.1108/IJOES-02-2019-0042

Vousinas, G. L. (2019). Advancing theory of fraud: the S.C.O.R.E. model. Journal of Financial Crime, 26(1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128

Wijayani, D. R., & Ratmono, D. (2022). Early Warning Of Organizational Ethical Culture In Accounting Fraud. Proceedings of the 3rd International Conference on Business and Management of Technology (ICONBMT 2021), 202(Iconbmt), 210–218. https://doi.org/10.2991/aebmr.k.211226.028

Wijayanti, D. M., Senjani, Y. P., & Farah, W. (2023). The role of Machiavellian personality, altruistic personality, religiosity, whistleblowing system, and accounting firm size in mitigating fraud intention. Journal of Financial Crime. https://doi.org/10.1108/JFC-02-2023-0034

Wijayanti, D. M., & Yandra, F. P. (2020). The Role of Incentives, Emotional Connection, and Organizational Justice in Establishing an Effective Whistleblowing System : An Experimental Study. 7(1), 51–68.

Downloads

Published

2024-08-10

How to Cite

Maharani, I. A. S., Suaryana, I. G. N. A., Budiasih, I. G. A. N., & Krisnadewi, K. A. (2024). Moderation of spiritual intelligence: Machiavellian personality, ethical organizational culture and whistleblowing system on fraud intention. Tennessee Research International of Social Sciences, 6(2), 164–176. Retrieved from http://triss.org/index.php/journal/article/view/65

Issue

Section

Research Articles