Factors That Can Influence the Tendency of Accounting Fraud

The tendency of accounting fraud is influenced by several factorssuch as individual moral behavior, the effectiveness of internal control and the appropriateness of compensation in Cimahi City SMEs are the objectives of this study. Primary data was collected using a saturated sample or non-probability sampling method from a questionnaire. The population of this study is Cimahi city MSME employees who have penetrated the global market, totaling 148 employees. While the samples taken were 50 respondents. The instrument test for the questionnaire statements includes validity and reliability tests to then test the normality of the data up to the hypothesis test. Methods of data analysis using multiple linear regression techniques. Simultaneously individual morality, the effectiveness of internal controls and the suitability of compensation affect the tendency of accounting fraud which is the result of the research obtained.


INTRODUCTION
Accounting fraud has become a media concern in the current era of globalization.
Fraud does not only occur in Indonesia, but occurs in various other countries.Fraud is a threat and an important concern for the world's economy, considering how much money is lost due to ongoing fraud.The tendency of accounting fraud is the tendency of fraudulent behavior carried out by violators of financial trust, misuse of assets or illegal behavior that can be detrimental.The phenomenon of fraud itself is of course familiar to the public, it can be a problem for every company in various countries (1).In general, fraud is an unlawful act committed within or outside an organization / company.For personal gain.
Fraud in small companies with less than 100 employees causes companies to lose an average of two hundred thousand US dollars per year or the equivalent of 2.8 billion rupiah per year, which value does not include intangible losses (2).
It is found that almost 90 percent of MSMEs do not have good financial planning and usually the businesses they undertake go bankrupt over time due to a lack of caution in managing the MSME income sources (3).

Murah and PT Muncul Lestari Makmur
Mandiri, an MSME company in Solo City, was found to have embezzled taxes or manipulated financial reports of 9 billion (4).

The fraud case experienced by Sabana Fried
Chicken Surabaya was in the case of an employee who took away sales money, manipulated the composition of chicken and flour, and manipulated reports regarding raw material supplies.
Morality can be interpreted as a quality that refers to the merits of a person's attitude or actions.In fact, many people break the law because they act and behave according to their wishes to harm others for their own benefit.
Someone who is immoral is more likely to commit fraud that can harm himself or others.
Another factor is the occurrence of accounting fraud committed due to the lack of oversight functions resulting in losses for the company due to ineffective company internal controls.
The impact of the damage can also affect the person's character.The human person must be seen from his character and mentality not to commit fraud.

Research Purposes
This study aims to determine: Agency Theoryis a difference of interest between the agent and principal relationship, which is a derivative of neo-classical economic theory (5).

Association of Certified Fraud
ExaminersDefining fraud as an illegal act that is against the law and carried out intentionally with the aim of manipulating or providing information that is incorrect or inaccurate for personal or group gain, so that it can harm other parties.There are three types of fraud: Financial statement fraud, Asset Theft, and Corruption (6).
Triangle Fraud theory in general explains the reasons why people commit acts of fraud (7).
Whereas in the triangle fraud theory there are several elements, namely: Pressure, Opportunity, Justification (Rationalization) (8).
Fraud is anything that is obtained by cunning and is used for profit by concealing facts, deception, fraud or deception and other dishonest means (9).Accounting fraud can be interpreted as an act that leads to false reporting presented in a financial report or a deliberate act by misusing organizational resources and falsifying information to advance their own interests (10).
Morals are things that are done based on generally accepted beliefs in society that usually refer to standard evaluations of human activity (11).Morality is how morality, principles and values that are overarching in the public eye oversee matters related to positive or negative actions taken (12).
Although the effort that everyone takes to reach this stage of development is different, everyone goes through the same stages and periods of moral development (13).The lowest level is the pre-conventional level, at this level an individual will begin to develop sensitivity to rules and begin to be able to distinguish between comparisons of different benefits or bad, right or wrong for an action from the point of view of the results that will occur or the results of the actions taken.Compensation is an award received by employees in return for their work contribution to the company (17).
Compensation is one of the company's efforts to distribute individual awards in return for carrying out tasks.
Compensation exists in two forms, namely: 1.The compensation is financial 2. Compensation is non-financial in nature (18).
There is little or no compensation will encourage fraud (19).

H1:
There is an influence of individual morality, the effectiveness of internal

Population and Sample
The population in this study were Cimahi City SMEs which had penetrated the global market as many as 25 SMEs under the auspices of the Cimahi City Trade, Cooperative, and Industry Office (Disdagkoperind).
In this study, non-probability sampling was used as the sampling method.Non-probability sampling is a sampling method in which there is no chance of being selected or every member of the population has an equal chance (20).Types of non-probability sampling can be done using purposive sampling in this study is saturated sampling or often also called census.
The entire population, including as many as 25 MSMEs, will be sampled in this study, as

Data analysis method
To facilitate the stages of data processing, The results of the above equation can be explained as follows: 1.The constant value is -2.826 and is indicative negative, indicating a tendency for accounting fraud to have a negative effect of -2.826.
2. Individual morality is 0.667, this shows a positive direction, so that with an increase in individual morality the variable tendency of accounting fraud will increase by 0.667.
3. Internal control effectivenessof 0.323, this shows a positive direction and therefore if the internal control effectiveness variable is increased, the accounting fraud tendency variable will increase by 0.323.
[a] The condition of individual morality, the effectiveness of internal controls and the suitability of compensation for the tendency of accounting fraud in SMEs in Cimahi City.[b] There is a simultaneous influence of individual morality, effectiveness of internal control, and suitability of compensation on the tendency of accounting fraud in SMEs in Cimahi City.[c] There is an influence of individual morality on the tendency of accounting fraud in Cimahi City SMEs.[d There is an effect of the effectiveness of internal control on the tendency of accounting fraud in Cimahi City SMEs.[d] There is an influence of the suitability of compensation on the tendency of accounting fraud in Cimahi City SMEs.
Audit Pajak Akuntansi Publik), Volume 2 No. 1 Juni 2023 Direktorat Pasca Sarjana Akuntansi -Universitas Sangga Buana YPKP 3 is an influence of individual morality on accounting fraud H3: There is an effect of the effectiveness of internal control on accounting fraud H4: There is an effect of suitability of compensation on accounting fraud.METHOD This research was conducted on Cimahi City SMEs that have penetrated the global market and already have business licenses, especially under the auspices of the Department of Trade, Cooperatives, SMEs and Industry of the Cimahi City Disdagkoperind Descriptive and verification research designs are used.Because it produces and describes ISSN: 2830-0726 E-ISSN: 2830-0645 Jurnal AJIB (Audit Pajak Akuntansi Publik), Volume 2 No. 1 Juni 2023 Direktorat Pasca Sarjana Akuntansi -Universitas Sangga Buana YPKP 4 the object under study, this research method will reveal a significant relationship between the variables studied.The descriptive method used in this study is to identify and obscure individual morale, internal control efficiency, and appropriateness of compensation with respect to accounting fraud tendencies.The means of control is to identify and limit the impact of individual morality, the effectiveness of internal controls, and the appropriateness of compensation on the possibility of accounting fraud.The types of data used in this research are primary data and secondary data.Where to use a questionnaire instrument or distribute questionnaires to MSME respondents who have penetrated the global market in Cimahi City.While secondary data is data that has been processed in quantitative form such as scientific journals, magazine articles, the internet, and other sources of information.
explained above.with the number of respondents 2 people from each company as representatives of the quality of financial reports with the qualifications of owners and the accounting department of MSMEs that have penetrated the global market in Cimahi City which already has a business license under the auspices of the Cimahi City Disdagkoperind.So the number of respondents in this study amounted to 50 people.

2 .
The Impact of Effective Internal Control on MSMEs The Tendency of Cimahi City Accounting Fraud This supports the notion that internal control is a set of policies and procedures designed to protect the wealth or wealth of a company from all threats (15).Effective internal control will close the opportunity for fraudulent tendencies to occur in accounting.The results of this study are in line with the existence of a fairly strong and negative relationship between internal controls and fraudulent tendencies (23).Likewise, the Effectiveness of Internal Control has a negative and significant effect on the Tendency of Accounting Fraud (11).3. The Effect of Appropriate Compensation on the Tendency of Accounting Fraud.The results of the study show that the suitability of compensation has no effect on the tendency of accounting fraud.The results of this study support the results of the study that the suitability of compensation has no effect on the tendency of accounting fraud (24).CONCLUSION Based on the results of data analysis and discussion that has been carried out regarding the tendency of accounting fraud in MSMEs in Cimahi City with the influence of individual morality, the effectiveness of internal controls and the suitability of compensation as a measuring tool for MSMEs in Cimahi City, the conclusions in this study are that: the condition of individual morality, the effectiveness of internal control, the suitability of compensation and the tendency of accounting fraud from the results of data processing stated that they were in good condition within a reasonable average not to fluctuate excessively.Individual morality, the effectiveness of internal controls and the suitability of compensation have a significant effect on the direction of a positive relationship to the tendency of accounting fraud.The partial results show that individual morality and the effectiveness of internal control have a ISSN: 2830-0726 E-ISSN: 2830-0645 Jurnal AJIB (Audit Pajak Akuntansi Publik), Volume 2 No. 1 Juni 2023 Direktorat Pasca Sarjana Akuntansi -Universitas Sangga Buana YPKP 8 significant effect on the direction of a positive relationship.On the other hand, the suitability of compensation does not have a significant effect on the direction of a positive relationship to the tendency of corporate accounting fraud.