THE EFFECT OF INTEGRITY, OBJECTIVITY, CONFIDENTIALITY, AND COMPETENCY OF INTERNAL AUDITOR ON FRAUD DETECTION

Abstract

Supervision of internal auditors is needed to overcome cases of fraud and corruption that occur in central or local government agencies. Comprehensive and effective actions by internal auditors must be carried out to detect fraud, so that the use of government budgets can be transparent, accountable and free from corruption, collusion and nepotism. Therefore, the purpose of this research is to investigate the effect of integrity, objectivity, confidentiality, and competency on capability of fraud detection at National Counter Terrorism Agency. This research held at National Counter Terrorism Agency Inspectorate is using quantitative method  with population as 20 internal auditors of National Counter Terrorism Agency Inspectorate. Sampling technique is census method. Multiple linear regression is the research method. The results of this research state that integrity and competency significantly affect on capability of fraud detection, whereas objectivity and confidentiality not significantly affect on capability of fraud detection by  internal auditors at National Counter Terrorism Agency Inspectorate.