Determination of Asset Misappropriation with Internal Control System as Moderating Variable

Asset misappropriation is one type of fraud that often occurs and is committed by management and employees. The purpose of this study was to analyze and empirically test the effect of fraud star and organizational culture on asset misappropriation detection with the internal control system as a moderating variable. This study uses a quantitative approach using a saturated sampling method by distributing questionnaires to Sidoarjo Regency OPD employees totaling 97 respondents. The analysis technique in this study is PLS analysis. The results in this study show that opportunity and ability have a positive effect on asset misappropriation, while pressure, justification, integrity and organizational culture have no effect on asset misappropriation. It was also found that the internal control system does not reduce the effect of pressure, opportunity, justification, ability and integrity on asset misappropriation but, the internal control system can moderate the relationship between organizational culture and asset misappropriation.