Suppressing Fraud of Village Financial Management with Organizational Culture and Control System

Village financial management faces various problems related to fraud. This study examines the effect of personal behavior on the tendency to commit fraud and the organizational mechanisms that can suppress it. This research was conducted using a questionnaire using the snowball method. Analysis can use the data of 157 respondents. The results show that greed and love of money directly affect ethical sensitivity but do not affect the tendency to fraud. The influence of both variables through ethical sensitivity. The higher the ethical sensitivity, the more the tendency to fraud decreases. Organizational culture and control systems are moderating variables. These organizational mechanisms can weaken the influence of personal behavior on actions that affect the organization. The village government must create an organizational culture and a capable control system so that individual behavior can be limited and directed according to organizational goals. Organizational mechanisms can suppress fraud and do not depend on personal aspects.