The Role of Good Governance in Fraud Prevention Efforts: Internal Control as Moderator

Dana Desa (Village Funding), which is generated from the state's expenditure budget, is prone to fraud, particularly if the village's application of good governance is still lacking. Village fund fraud is intended to be reduced by effective internal controls. The focus of this research is how strong governance affects village financial fraud in Sleman Regency, using internal control as a moderator. In this study, good governance is defined as responsibility, accountability, and transparency. As a result, the research issue is whether excellent governance has a detrimental impact on fraud prevention and whether Internal Control strengthens good governance's affect on fraud prevention. The study's primary data was collected from a survey of 101 employees of the sub-district office in the Sleman Regency, Special Region of Yogyakarta, who completed a questionnaire. The findings revealed that in the Sleman district, partial responsibility, accountability, and transparency had no effect on fraud prevention. Internal control, it turns out, has no effect on the influence of good governance on fraud prevention. The presence of internal control variables, which are expected to enhance the influence of good governance on fraud prevention measures, is a novel part of this study.