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Internal Audit Organization Status, Audit Committee Characteristics, Political Connections and Fraud Prevention
Abstract
This study aims to examine the effect of the Internal Audit Organizational Status and Characteristics of the Audit Committee on Fraud Prevention with Political Connections as Moderating Variables. The sample in this study were 34 Consumer Goods Industrial Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2020 period using the Purposive Sampling method. The data used is secondary data obtained from the Financial Statements and Annual Reports of Consumer Goods Industry Sector Companies that have been published on the official website of the Indonesia Stock Exchange (www.idx.co.id) during the 2017-2020 period and the websites of each company. The analytical method used in this research is Moderated Regression Analysis (MRA). The results of this study are 1) Internal Audit Organizational Status has a significant negative effect on Fraud Prevention. 2) The characteristics of the Audit Committee have a significant positive effect on Fraud Prevention. 3) Political Connection is able to moderate the influence of Internal Audit Organizational Status with Fraud Prevention. 4) Political Connection is able to moderate the influence of the characteristics of the Audit Committee on Fraud Prevention.
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DOI: https://doi.org/10.26905/afr.v6i1.9510
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