The Effect Of Internal Control System, Leadership Style And Compensation System Toward Fraud Prevention

Abstract

In internal control, one of the elements is the control environment, where in the control environment there is the term strong tone at the top. This term means that when a leader can lead well and become a role model for his subordinates, then it can strengthen internal control and prevent fraud. One of the causes of fraud is suspected is employee dissatisfaction with the company. Things that are sensitive to employees are payroll or compensation issues. The purpose of this study was to determine the effect of internal control systems, leadership styles and compensation systems on fraud prevention. This research was conducted at Pulp and Papers Company; which is engaged in oil palm using quantitative methods and questionnaire data collection techniques. This research was given to 235 respondents. Data processing is performed using the SPSS program by using several types of tests. The results of this study indicate that the internal control system does not influence while the leadership style and compensation system can influence fraud prevention. On simultaneous test, we have result that of the three variables x influence fraud prevention.