International Journal of Economics and Financial

Issues
ISSN: 2146-4138

available at http: www.econjournals.com

International Journal of Economics and Financial Issues, 2020, 10(1), 19-26.

Determinats of Fraud Prevention and Financial Performance as

an Intervening Variable

Hendri Hendri*, Yuliantoro, Maksimilianus Kolot Ama

Sekolah Tinggi Ilmu Ekonomi Y.A.I., Jakarta, Indonesia. *Email: wangsapertela@yahoo.com

Received: 10 October 2019 Accepted: 13 December 2019 DOI: https://doi.org/10.32479/ijefi.8955

ABSTRACT
The purpose of this study was to analyze the role of financial performance in mediating the effects of the performance of human resources (HRs),
internal controls, standard operating procedures (SOPs) and organizational culture to the prevention of fraud. The population of this study is 58 unit
school and all schools and power finance unit manager Tarakanita School unit in Indonesia amounting to 202 people. The sampling method using a
purposive sampling method. Data were processed amounting to 142 data with the data a processing method using the smart PLS. Hypothesis testing
results showed that the quality of HRs and a significant positive effect on financial performance. Internal controls and a significant positive effect on
financial performance. SOP positive and significant impact on financial performance. Organizational culture positive and significant impact on the
financial performance ko. Financial performance and significant positive effect on the prevention of fraud. The quality of HRs and a significant positive
effect on the prevention of fraud. Internal controls and a significant positive effect on the prevention of fraud. Standard operating prprocedures positive
and significant effect on the prevention of fraud. The organizational culture had no effect on the prevention of fraud. The results of the analysis of
mediating variables using the Sobel test found that financial performance is able to mediate the effect of the quality of HRs, internal controls, SOPs
and organizational culture to the prevention of fraud.
Keywords: Quality of Human Resources, Internal Controls, Standard Operating Procedures, Organizational Culture, Prevention of Fraud
JEL Classifications: E10, E32, E60

1. INTRODUCTION benefit for the company to survive and thrive. The desired
benefits taken by the company in various ways and strategies
Institutions of an economic entity which manages the funds to increase profits in their business activities from year to year,
coming from individuals, communities or government, therefore, but unwittingly following years the company experienced a
have an obligation Institutions of periodic financial reports on the decline in revenue even though the strategy and the policy
management of the fund resources to stakeholders. Demands for applied remains the same or even increase strategy. This situation
transparency and accountability of stakeholders encourage the often occurs in large and small companies due to fraud (fraud)
management to produce a quality rt that is free from the element happens in companies that were generally carried out by its
of fraud. The high cost of education at school level school-run own employees who can also work with other people outside
leads to cost becomes less. Tighter supervision needs to be done the company.
in an effort to prevent moregularities behavior through improving
the internal control systems (internal control system). Fraud (fraud) that plague educational institutions often occur in
Indonesia. Anti-corruption education is valid only for students,
The company or any large educational institutions and small but not for school finance staff, principals, and education officials.
in general, in addition to discount the aim to get the maximum They were supposed to set an example to the students, it ensnared

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 Hendri, et al.: Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

Fraud practice. They make education a commodity just to satisfy norms, values and understandings that are shared (cultural) of
political interests and the object of material gains. members of several organizations supporting strict controls at
the top (Al Mehrzi and Singh, 2016), cultural organiasi properly
Current conditions many kinds of ways in which the finance executed by members of the organization can shape the attitudes,
staff to commit fraud from the start manipulation of data even norms and niai good. Culture comply with company rules, a
up embezzlement charges tuition of students and that happens positive attitude towards co-workers or bosses, have honesty high
in the school environment Tarakanita. Fraud is happening in the level of environmental organizations and others. Conditions good
territories Tarakanita in Indonesia is due to dishonesty by the Tu employees in accordance with organiasi culture can improve the
financial officer school unit and weak supervision of the school passage of the company’s internal control system and to prevent
principal so that really hurt the value material Tarakanita party. actions that may deviate from the purpose of the company or act
Many energy finance unit of the school when it was discovered of fraud (fraud). The low implementation of the organization’s
during the inspection of internal audits conducted by the Central culture or attitude Tarakanita can melemahan important norm of
Office 2016 and 2018, there is still an lot of fraud committed by the fraud committed by the attitude of honesty and comply with
the power of finance, for it continues to take steps to prevent fraud regulations. Employees who do not have the attitude of honesty
on an ongoing basis selanjutanya be tegasdalam processing power and adhere to the rules could weaken the implementation of the
of financial melakuakan fraud. performance and easily perform tndakan fraud at the institution.
Organizational culture has an influence on internal control and
This phenomenon invites researchers to conduct deeper analysis fraud prevention. The low implementation of the organization’s
to see the culture of organizations and the quality of human culture or attitude Tarakanita can melemahan important norm of
resources (HRs) in order to prevent fraud because kepandaian the fraud committed by the attitude of honesty and comply with
education criminals invent a mode using a program or insert regulations. Employees who do not have the attitude of honesty
interests in various programs, even many of its own financial and adhere to the rules could weaken the implementation of the
power to manipulate data and financial statements to eliminate performance and easily perform tndakan fraud at the institution.
the recording of valid evidence. All processing is done behind Organizational culture has an influence on internal control and
closed doors in the school unit. Lack of accountability, and weak fraud prevention. The low implementation of the organization’s
internal pengendalianan easier for unscrupulous and criminal culture or attitude Tarakanita can melemahan important norm of
groups embezzled funds from the learners. the fraud committed by the attitude of honesty and comply with
regulations. Employees who do not have the attitude of honesty
Tarakanita in Indonesia realizes the importance of prevention of and adhere to the rules could weaken the implementation of the
fraud (fraud) by way of understanding organizational culture, and performance and easily perform tndakan fraud at the institution.
an increase in the effective implementation of internal control. Organizational culture has an influence on internal control and
Cheating happens in institutions are often the result of which is fraud prevention.
less than the maximum supervision of the management company.
Companies that do form of supervision is through internal control SOP is a guideline or a reference to perform job duties in
needs to take place to increase the implementation of internal accordance with the functions and government institutions
control so that it can function properly in order to prevent fraud performance assessment tool based on indicators of technical
in the company. indicators, administratively and procedurally in accordance with
the work procedures, work procedures and systems of work at
Effective internal control is necessary for the company to achieve the work unit concerned. SOP purpose is to create a commitment
its goals, while growth in financial performance may be influenced of what is done by the company’s work unit to achieve good
by the culture of the organization, standard operating procedures governance. SOP is not only internal but also external, for
(SOPs), quality of natural resources and internal controls. The SOP in addition be used to measure the performance of public
ineffectiveness of internal controls in Indonesia, especially in organizations related to the accuracy of the program and the time,
an environment evidenced by the emergence Institutions of was also used to assess the performance of public organizations in
allegations of corruption. During the year 2012 there have been the public eye in the form of responsiveness, responsibility, and
at least 5 (five) Institutions suspected of involvement in acts of accountability of the performance of the company or institution.
fraud. Nevertheless, it is still a conjecture that the principle of the
presumption of innocence must be upheld. Tarakanita in particular, the performance appraisal is very useful
for assessing the quantity, quality, and efficiency of services,
Tarakanita School has realized the importance of prevention of motivating the executive bureaucrats, make adjustments to the
fraud (fraud) by improving the ability of competency for financial budget, pushing for more attention to the school unit values
or resource manuasi. HR capacity is the ability of a person or honesty in serving students.
individual, a organiasi (institutional) or a system to perform
functions or kewewenangannya to achieve its goals effectively and Every company or educational institution and the form of any kind,
efficiency. Its capacity should dililhat as the ability to achieve the however, requires a guide to perform the duties and functions of
performance to produce outputs outputs and results (outcomes) each element or unit of the company. SOP is a system designed to
in addition to competence of employees that affect the prevention facilitate, trims and curb work. This system contains a sequence of
of fraud how culture organiasasi applied. Culture organiasi the the process of doing the job from start to finish. SOP is a guideline

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 Hendri, et al.: Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

or a reference to perform job duties in accordance with the These activities include the creation of a standard fee, the cost
functions and tools judging the performance of employees is based of monitoring agency, the creation of accounting information
on technical indicators, administrative and work procedures and systems and others. This activity raises the cost of the so-called
working systematically on work unti concerned. With its structured agency cost. Oversight is one component of the GCG. Quality
operational standards can explain the details of the procedures monitoring which can reduce opportunistic behavior committed
or standards that remain about the activities of repetitive work by the manager.
organized within an organization.
2.1.3. Standards agency relations theory with the operational
HRs is a very important factor in the organization. HRs said the procedures
most important capital therefore has a value far exceeds all of Agency theory according to Falik et al., 2016 is “a contract under
the equipment, technologies and systems of the organization. one or more of which involve the agent to perform some service
Recognizing the importance of the quality of HRs for educational for them by delegating authority make decision to agent,” for
institutions Tarakanita today, amid competition takes place, better or agent assumed the rational economic and exclusively - the
there is a phenomenon that occurs in the organization include eye motivated by personal interests. Delegate decisions about the
many employees who still need to development both in terms of company to the manager or agent.
knowledge (knowledge) or expertise, willpower and skills (skills)
for improving the performance management of organizations in Agency theory seeks to answer the agency problems that occur
the management of HRs. Maximal understanding of organizational because parties - parties that work together have different
culture and SOPs related to finance in the School of Tarakanita objectives. Agency theory (agency theory) emphasized to
this causes could happen fraud. overcome two problems that can occur in the agency relationship
(Burkart and Panunzi, 2006).
2. LITERATURE REVIEW
2.1.4. Agency relationship with organizational culture theory
2.1. Agency Theory This theory is a theory that emerged in the development of
2.1.1. Relations agency theory with HRs quality accounting research which is a modification of the development of
HRs quality the quality of HRs is the human capacity to carry financial accounting model by adding aspects of human behavior
out the duties and responsibilities assigned to him by the pprothe in economic models. Agency theory basing contractual relationship
vision of education, training, and experience are sufficient. between shareholders and management owners/managers. Menerut
Homburg et al., 2014 claimed to produce financial reports this theory the relationship between owners and managers are
required of qualified local HRs to understand and are competent intrinsically difficult tersipta because of their conflicting interests
in government accounting, financial, organizational and even (conflict of interest).
areas of government. According to TRB and Manual, 2000, to
assess the capacity and quality of HRs in carrying out a function, 2.1.5. Relations agency theory with fraud prevention
including accounting, can be seen from the level of responsibility Agency theory looked into the company’s management will act,
and competence of these resources. Responsibility can be seen with full awareness of its importance, management cannot be
from or contained in the job description. A position description is trusted to act as well as possible for the benefit of the public in
a basis to perform the task well. Without a clear job description, general and shareholders in particular.
these resources cannot do their job properly. While competence
can be seen from an educational background, training has been 2.1.6. Agency relations theory with financial performance
followed, and of the skills stated in the execution of tasks. Financial performance or the financial performance of a company’s
ability to manage its finances. Environmental performance can be
2.1.2. Relations with the internal control agency theory measured using profitability, the company’s ability to profit from
A perspective agency relationship is a basis used to understand its activities. Companies that have high profitability expected
the relationship between managers and shareholders. Falik et al., management have more opportunities to express statements
2016 argued that the agency relationship is a contract between regarding the company’s activities widely. Disclosure of
the manager (agent) to the shareholders (principal). The agency information, especially regarding the environment will facilitate
relationships sometimes cause problems between managers and the survival of the company to give a good image to the public.
shareholders. Conflicts occur because humans are creatures of the
economy that has the nature of altruistic self. Shareholders and 2.2. Auditing
managers have different purposes and each want their purpose Audit is a science that is used to assess the internal controls
terpenuhi. Causality happened is the emergence of a conflict of which aims to provide protection and security in order to detect
interest. The shareholders want a greater return and as quickly the occurrence of fraud and irregularities committed by the
as possible on investment they invest while managers want their company. The audit process is necessary a company because the
interests accommodated by the provision of compensation or process is a certified public accountant can deliver an opinion on
incentives profusely for their performance in running the company. the fairness or appropriateness of financial statements based on
Therefore, principals need to design a control system that monitors international generally accepted auditing standards. To understand
the behavior of the agent preventing the actions that increase the better understanding of the audit, the following definition in the
wealth of agents at the expense of the interests of the principal. opinion of some experts audit accounting.

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 Hendri, et al.: Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

According Carcello and Nagy, 2004 audit is: An examination According to Anggraeni, 2014 “internal control system includes
conducted critically and systematically, by an independent party, organizational structure, methods, and coordinated measures to
the financial statements have been prepared by management, along safeguard the wealth of the organization. Checking the accuracy
with the copy of records and supporting evidence, in order to be and reliability of accounting data, encourage efficiency and
able to give an opinion on the fairness of the financial statements. promote compliance with management policies.”
According to Paananen et al., 2012 audit is: A systematic process
to obtain and evaluate evidence objectively about statements about According to Guo et al., 2016, the internal control system
events and economic events, with the aim to establish the level of consists of policies and procedures designed to provide adequate
concordance between these statements with established criteria, assurance that the management company has achieved its goals and
as well as the delivery of results to the user concerned. objectives. These policies and procedures are often called control,
and collectively form the entity’s internal control.
Audit according to De Fond and Zhang, 2014 is the collection
and evaluation of evidence about information to determine and According to the Committee of Sponsoring Organizations Report
report the degree of suitability of the information and criteria (Lumpkin and Dess, 2001) defines internal control as follows:
established. Of the various terms above, it can be said that the audit “Internal control is a process, effected by an entitiy’s board of
is a process that is carried out in a systematic examination of the directions, management, and other personnel, designed to provide
financial statements, internal control, and accounting records of reasonable assurance regarding the achievement of objectives
a company. Aims to evaluate and audit and give opinion on the relating to operations, reporting, and compliance.”
fairness of financial statements based on evidence obtained and
conducted by an independent and competent. And according to the AICPA in 1949 in (Markarian, 2014)
definition of internal control that contains the plan of organization
2.3. Understanding Quality of HRs and all methods of coordinated and measurements are applied in
Here are some of the sense of quality that is according to Merz the company to safeguard assets, check the accuracy and reliability
and Falloon, 2009 quality is: “In conformity with the standards- of accounting data, improve operational efficiency, and encourage
based measurable levels of mismatches, and is achieved through adherence to managerial policy that has been set.
examination.”
According to Onali and Ginesti, 2014 the purpose of internal
Furthermore, according to Beth, 2016 said HR definition is: control is to provide reasonable assurance in achieving the goal
“The ability to think the integrated power and physical power of of three groups: Reliability of financial information, compliance
the individual. And its behavior is determined by heredity and with laws and regulations, and the effectiveness and efficiency
environment.” of operations.

The notion of HRs is according Studer, 2016 is: “HRs is the person 2.5. SOP
who called the manager, officers, employees, workers or workers Each organization company has its own patterns and mechanisms
who work for the organization.” in carrying out its activities, patterns and mechanisms through
manual procedures and guidelines, therefore, through this
Similar delivered by Telha et al., 2016 gave the sense, namely: section will explain some understanding relating to the patterns
“HRs are individuals within the organization who made a valuable and mechanisms in the company, such as understanding the
contribution to the achievement of organizational goals.” SOP and work standards. The procedure is a series of methods
that have become a fixed pattern to do a job that is a roundness
Later described by Joo and Ready, 2012 explain the meaning of (Anagnostopoulos and Buckland, 2005). While the procedure
quality of HRs, namely: “The quality of HRs is only determined by of office or office system is defined as a sequence of steps (or
the skill aspect of his physical force or power, but also determined operations are the work). According Stepanyan et al., 2016,
by education or experience or knowledge level of maturity and the working procedure is a series of interrelated tasks and the
attitude as well as its values.” chronological sequence in order to complete a task.

Notions of the above can be said that the quality of HRs is In carrying out the job, in addition to the order details or steps,
an individual within the organization who made a valuable also required a work standards to achieve the goals set, in this
contribution to the achievement of organizational goals with respect, labor standards is a reference line management or basic
aspects of the skills that are determined by the level of education, comparison (Jones et al., 2011). According Kozan and Liu,
honesty and experience. 2012, the standard of conduct or result of work is the minimum
expected to be achieved by all employees of the office. Meanwhile,
2.4. Internal Control according to Belyaev et al., 2005, the standard is something that
In general, internal control is a part of each system that is used as is formed by habit or by the power to measure things like quality.
the operational procedures and guidelines for a specific company
or organization. Companies generally use internal controls to steer, Based on the above, an organization of implementing a
monitor and measure the organization’s resources in an effort to procedure that is applied in a job that contains steps that work
prevent the occurrence of irregularities in achieving corporate goals. with the aim to achieve the expected work results or outcomes

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 Hendri, et al.: Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

expected minimum. Thus it was established SOP applied by 3. METHODOLOGY

the company to achieve the expected goals of the company,
according Kozan and Liu, 2012 SOP is a guideline or a reference In this study the authors method uses a quantitative approach.
to perform job duties in accordance with the functions and tools Researchers using quantitative approach will test a theory by way
work evaluation of government agencies based on technical of detailing a specific hypotheses, and collect data to support or
indicators, administrative and procedural appropriate the refute these hypotheses. This method is done by collecting data,
working procedures, work procedures and systems of work at testing of the data and get the results from the relationship due
the work unit concerned, Gervais, 2016 states that the SOP is to anatara varabel studied were influence quality of HRs, internal
relevant because as a benchmark in assessing the effectiveness control, SOPs and cultural organization on the prevention of fraud
and efficiency of the company’s performance in implementing to increase the performance of finance as an intervening variable.
its work program. The data used in this study are primary data obtained directly from
the School Tarakanita in Indonesia.
2.6. Organizational Culture
Organizational culture is a system for distributing trust and The population in this study are all the financial power and
values that thrive in an organization and guide the behavior of leadership Tarakanita School unit in Indonesia totaling 202 people.
its members. Organizational culture can be a major instrument
of competitive advantage, namely when the organizational The sampling technique used in this research is to use sampling
culture supports the strategy of the organization. Al Mehrzi and purpose is to determine the sample with the following specific
Singh, 2016 defines organizational culture as a system of shared criteria are as follows:
meaning held by members that distinguishes the organization with a. Aimed at the principal, vice principal, kapala in finance,
other organizations. Cycyota et al., 2016 defines organizational finance staff
culture as a pattern of basic assumptions that have discovered or b. Having work experience or get into office at least 1 year of
developed by a group of people while they learn to solve problems, tenure
adapt to the external environment, and integrate with the internal c. Have a minimum high school education background.
environment.
Based on these criteria, the samples used in this study as many
2.7. Prevention of Fraud as 150 people.
Erlangga and Mawardi, 2016 defines fraud as follows:
4. RESULTS AND DISCUSSION
“Cheating is defined as a broad legal concept, cheating describe
any intentional fraud attempts, which are intended to take the 4.1. Results
assets or rights of another person or party. In the context of an Based on test results PLS then the results can be tabulated in
audit or financial statements, fraud is defined as any intentional Figure 1.
misstatement of financial statements. Two main categories are
fraudulent financial reporting and misappropriation of assets.” Based on the structural model equation, it can be interpreted as
follows:
Meanwhile, according to hall, quoted by (Goldsmith, 2007) fraud 1. Sample original value estimate influence the quality of HRs to
is “…a phase representation of a material fact made by one party the financial performance of 0.320 (positive) meaning that the
to another party with the intent to deceive and induce the other higher the quality of HRs the higher the financial performance
party to justifiable Rely on the fact to his or her detriment.” 2. Value estimate the influence of the original sample internal
control over financial performance by 0.151 (positive),
Another definition of fraud proposed by Költzsch, 2006 as follows: meaning that the higher the higher the internal control of
“Cheating describe any intentional deception, intended to take the financial performance
assets or rights of another person or party. In the context of the 3. Value estimate the influence of the original sample SOPs on
audit of financial statements. Cheating is defined as any intentional the financial performance of 0.212 (positive) meaning that
misstatement of financial statements. Two main categories are the higher the higher the SOPs of financial performance
fraudulent financial reporting and misappropriation of assets.” 4. Sample original value estimate of organizational culture on
the financial performance of 0.251 (positive), meaning that
Meanwhile, according to the Institute of Internal Auditors, the higher the higher the culture of the organization’s financial
quoted from (Erlangga and Mawardi, 2016) fraud is: “Fraud is an performance
irregularity and illegal acts characterized by intentional deception. 5. Sample original value estimate of financial performance on
It can be done for the benefit and or damages the organization by the prevention of fraud (fraud) of 0.208 (positive), meaning
outsiders or insiders.” that the higher the higher the financial performance of fraud
prevention
According to SAS 99 (Misailovic et al., 2010), quoted by Berry and 6. Sample original value estimate quality of HRs to the
Gresham, 1986, there are three factors someone cheating known as prevention of fraud (fraud) of 0.209 (positive), meaning that
the fraud triangle, namely: (1) Pressure (pressure); (2) opportunity the higher the quality of HRs the higher the prevention of
(opportunities); (3) rationalization (rationalization). fraud

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 Hendri, et al.: Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

Figure 1: Results of path coefficient analysis

Source: PLS output, 2019

7. The original value estimate internal control samples to the higher the SOPs, the higher the financial performance Tarakanita
prevention of fraud (fraud) of 0.176 (positive), meaning that Schools in Indonesia. SOPs are applied consistently, committed
the higher the higher the internal control fraud prevention and capable of binding Tarakanita School improved its financial
8. Estimate the value of the original sample SOPs on the performance in Indonesia.
prevention of fraud (fraud) of 0.398 (positive), meaning that
the higher the higher the SOPs of fraud prevention 4.2.4. Influence of organizational culture on financial
9. Sample original value estimate of organizational culture on the performance
prevention of fraud (fraud) 0.065 (positive), but not significant, Based on testing of financial performance organizational culture has
because it is not significant, it cannot be at interpret. a significant positive effect and can diintepetasikan that the higher
the culture of the organization, the higher the financial performance
4.2. Discussion Tarakanita Schools in Indonesia. Organizational culture through
4.2.1. HRs quality impact on financial performance the cultivation of values, heroism, spirituality, ritual gratitude can
Based on testing the quality of HRs to financial performance has improve financial performance school Tarakanita in Indonesia.
a significant positive effect and can diintepetasikan that the higher
the quality of HRs, the higher the financial performance Tarakanita 4.2.5. Effect of financial performance on fraud prevention
Schools in Indonesia. The quality of HRs in the form of abilities, Based on the financial performance testing on the prevention of
skills and knowledge can improve the financial performance fraud has a significant positive effect and can diintepetasikan that
management Tarakanita Schools in Indonesia. the higher the financial performance, the higher the prevention
of fraud school Tarakanita in Indonesia. Financial performance
4.2.2. Effect of internal control on financial performance has knowledge of liquidity, solvbilitas, profitability and stabiitas
Based on the testing of internal control over financial performance able to improve fraud prevention Tarakanita Schools in Indonesia.
has a significant positive effect and can diintepetasikan that the
higher the higher the internal control of financial performance 4.2.6. Quality impact HRs fraud prevention
Tarakanita Schools in Indonesia. Internal control is an internal Based on testing the quality of HRs to the prevention of fraud has
control system includes organizational structure, methods, and a significant positive effect and can diintepetasikan that the higher
coordinated measures to safeguard the wealth of the organization. the quality of HRs, the higher the fraud prevention Tarakanita
Checking the accuracy and reliability of accounting data, Schools in Indonesia. The quality of HRs is determined by skill
encourage efficiency and promote compliance with management or strength aspects of his physical strength, but also determined
policies (Eiselt and Marianov, 2015). by education or experience or maturity level of knowledge and
attitude as well as its values (Mutmainah, 2015).
4.2.3. Effect of standard operational procedures on financial
performance 4.2.7. Effect of internal control of the fraud prevention
Based on the SOPs of testing have a significant positive influence Based on testing internal control over fraud prevention has a
on the financial performance and may diintepetasikan that the significant positive effect and can diintepetasikan that the higher

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 Hendri, et al.: Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

the higher the internal control fraud prevention Tarakanita Schools has a significant positive effect and can diintepetasikan that the
in Indonesia. Internal control system includes organizational higher the financial performance it will be able to increase the
structure, methods, and coordinated measures to safeguard the effect of SOPs on the financial performance school Tarakanita
wealth of the organization. Checking the accuracy and reliability in Indonesia. Financial performance has knowledge of liquidity,
of accounting data, encourage efficiency and promote compliance solvency, profitability and stability can increase the effect of the
with management policies (Eisenberger and Stinglhamber, 2011). consistency SOPs through the procedure, the commitments in
the run, the procedure shall be binding on the prevention of fraud
4.2.8. Effect of standard operational procedures on fraud school Tarakanita in Indonesia.
prevention
Based on standardized testing operational procedures on the 4.2.13. Influence of organizational culture on the prevention of
prevention of fraud has a significant positive effect and can fraud in financial performance as variables mediation
diintepetasikan that the higher the standard operational procedure, Based on testing of intervening on the influence of organizational
the higher the fraud prevention Tarakanita Schools in Indonesia. culture on fraud prevention and financial performance as an
The procedure is a series of methods that have become a fixed intervening variable has a significant positive effect and can
pattern to do a job that is a roundness (Maertz et al., 2007). diintepetasikan that the higher the financial performance it will
be able to increase the influence of organizational culture on the
4.2.9. Influence of organizational culture on fraud prevention financial performance school Tarakanita in Indonesia. Financial
Based on testing of organizational culture on fraud prevention has performance has knowledge of liquidity, solvency, profitability
a positive effect but not significant, because it is not significant, and stability is able to increase the influence of organizational
it cannot be interpreted. High and low culture of the organization culture through planting standard values, heroism, ritual gratitude
will not have an impact on fraud prevention Tarakanita Schools and tissue culture well to fraud prevention Tarakanita Schools in
in Indonesia. Not berdampaknya of organizational culture on Indonesia.
fraud prevention for businesses owned neighborhood school
Tarakanita in Indonesia is still in the moderate category this will 5. CONCLUSION
trigger an effect on the prevention of fraud, which in essence can
be minimized by the School Tarakanita in Indonesia. Based on the results of data analysis can be drawn some
conclusions as follows:
4.2.10. Effect of quality of HRs of the prevention of fraud in 1. The quality of HRs has a positive effect (0.320) and significant
financial performance as variables mediation (0.000) of the financial performance. It can be interpreted
Based on testing of intervening on the influence of the quality that the higher the quality of HRs, the higher the financial
of HRs to the prevention of fraud and financial performance performance school Tarakanita in Indonesia
as an intervening variable has a significant positive effect and 2. Internal control has a positive effect (0.151) and significant
can diintepetasikan that the higher the financial performance (0.005) of the financial performance. It can be interpreted
it will be able to improve the quality of HR influence on the that the higher the higher the internal control of financial
financial performance School Tarakanita in Indonesia. Financial performance school Tarakanita in Indonesia
performance has knowledge of liquidity, solvency, profitability and 3. SOP positive effect (0.212) and significant (0.001) of the
stability can improve the quality of resources manuaia influence financial performance. It can be interpreted that the better the
in the form of abilities, skills and knowledge to the prevention of SOPs are applied, the higher the financial performance school
fraud school Tarakanita in Indonesia. Tarakanita in Indonesia
4. Organizational culture has a positive effect (0.251) and
4.2.11. Effect of internal control of the prevention of fraud in significant (0.002) of the financial performance. It can be
financial performance as variables mediation interpreted that the higher the culture of the organization,
Based on testing of intervening on the influence of internal control the higher the financial performance Tarakanita School in
over fraud prevention and financial performance as an intervening Indonesia
variable has a significant positive effect and can diintepetasikan 5. Financial performancepositive effect (0.208) and significant
that the higher the financial performance it will be able to increase (0.000) on the prevention of fraud. It can be interpreted that
the influence of internal control on financial performance school the higher the financial performance, the higher the prevention
Tarakanita in Indonesia. Financial performance has knowledge of of fraud Tarakanita School in Indonesia
liquidity, solvency, profitability and stability is able to increase 6. The quality of HRs has a positive effect (0.209) and significant
the influence of internal controls in the form of the control (0.000) on the prevention of fraud. It can be interpreted that
environment, risk assessment, financial control, communication the higher the quality of HRs, the higher the prevention of
and monitoring of fraud prevention Tarakanita Schools in fraud Tarakanita School in Indonesia
Indonesia. 7. Internal control has a positive effect (0.176) and significant
(0.001) on the prevention of fraud. It can be interpreted that
4.2.12. Effect of SOPs of the prevention of fraud in financial the higher the internal control, the higher the prevention of
performance as variables mediation fraud school Tarakanita Indonesia
Based on the effect of intervening testing SOPs on the prevention 8. SOP positive effect (0.398) and significant (0.000) on the
of fraud and financial performance as an intervening variable prevention of fraud. It can be interpreted that the better the

International Journal of Economics and Financial Issues | Vol 10 • Issue 1 • 2020 25

 Hendri, et al.: Determinats of Fraud Prevention and Financial Performance as an Intervening Variable

operational standards are applied, the higher the prevention adequacy ratio (Car), finance to deposit ratio (Fdr) dan non
of fraud school Tarakanita Indonesia performing financing (Npf) terhadap return on assets (Roa) bank
9. Organizational culture has a positive effect (0.065) but not umum syariah di Indonesia periode 2010-2014. Jurnal Ekonomi
significant (0.108) on the prevention of fraud Syariah Teori Dan Terapan, 3(7), 561-574.
Falik, Y., Lahti, T., Keinonen, H. (2016), Does startup experience matter?
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Venture capital selection criteria among Israeli entrepreneurs. Venture
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Capital, 12(7), 12-23.
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can be interpreted that the higher the financial performance treatment policies on internal control weaknesses and financial
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on the prevention of fraud in school Tarakanita Indonesia Homburg, C., Wilczek, H., Hahn, A. (2014), Looking beyond the horizon:
12. The financial performance of the intervening variables influence How to approach the customers’ customers in business-to-business
markets. Journal of Marketing, 78(5), 58-77.
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increase the influence of the operational berthing procedures of Systems and Information Technology, 13(2), 163-178.
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