Abstract

The term fraud becomes a familiar thing in the world of work both in the private sector and the government sector. Fraud

spread throughout the foundations of the life of the perpetrator known better as the fraud triangle where pressure,

opportunity, and justification are the main factors that form the basis for fraud. Public service agencies are formed by the

government on the basis of improving services to the community where the government gives an authority to State

Universities to manage their funds to be utilized and developed to be more productive, efficient and beneficial for their

users. This study aims to determine the perception of financial managers regarding some actions that can affect the

occurrence of fraud. The test tool used SPSS with the sample acquisition method is purposive sampling with a

quantitative approach. Based on the results of the study it can be concluded that the good and bad of the internal control

system in an institution greatly affects the tendency of fraud, the better internal control make the lower tendency of fraud

as well as the suitability of compensation received by employees will minimize fraud and the potential for fraud will be

greater if unethical behavior of employees tends to increase, while enforcement of regulations is not as an indicator of

fraud.

Keywords: Fraud, internal control, compensation, and behaviour