The Impact Of Internal Control And Internal Audit On Fraud Prevention: Evidence From Bank Perkreditan Rakyat (Bpr) Malang City

Abstract

This study used a quantitative approach with a survey method by distributing questionnaires to all employees as the research sample. The data were analyzed using validity and reliability tests, classical assumption tests, multiple linear regression, t-test, F-test, and coefficient of determination with the help of SPSS. The test results showed that all research instruments were valid and reliable, and that the data met the normality assumption, with no multicollinearity and no heteroscedasticity symptoms. The results of the study indicate that internal control has a positive and significant effect on fraud prevention. Internal audit was also proven to have a positive and significant effect on fraud prevention, with a greater influence than internal control. Partially and simultaneously, both variables have a significant effect on fraud prevention at Rural Banks Malang City. In conclusion, the better the internal control and the more effective the internal audit, the higher the bank’s ability to prevent fraud. The contribution of both independent variables to fraud prevention is relatively strong, so strengthening the control system and audit function is a strategic step that needs to be continuously improved.

The results of the study indicate that internal control has a positive and significant effect on fraud prevention. Internal audit was also proven to have a positive and significant effect on fraud prevention, with a greater influence than internal control. Partially and simultaneously, both variables have a significant effect on fraud prevention at Bank Perkreditan Rakyat (BPR) Malang City. In conclusion, the better the internal control and the more effective the internal audit, the higher the bank’s ability to prevent fraud. The contribution of both independent variables to fraud prevention is relatively strong, so strengthening the control system and audit function is a strategic step that needs to be continuously improved.

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