FRAUD BEHAVIOR IN VILLAGE FUND MANAGEMENT IN NORTH TIDORE DISTRICT: A PENTAGON FRAUD THEORY STUDY
This study was conducted to look at the factors that influence fraud behavior in village fund management based on the Pentagon fraud theory. Each factor is represented by proxies of external pressure, information system weaknesses (opportunities), organizational ethical culture (rationalization), intentions, as well as attitudes and behavioral controls (capability), and subjective norms (arrogance). The research sample was determined using the purposive sampling method, which consists of village equipment in Maitara. The data were analyzed by descriptive quantitative methods, which were tested using Partial Least Square (PLS). The result of this study is that external pressure has proven to affect fraud in the process of managing village funds. Opportunities proxied with information system weaknesses proved to not affect Village Fund Fraud. Rationalization measured by the ethical culture of the organization is proven to affect Village Fund Fraud. Attitudes are proven to not affect the intention to commit fraud in the process of managing village funds. Subjective norms have proven no effect on the intention to commit fraud in the process of managing village funds. Behavioral control has been shown to affect the intention to commit fraud in the process of managing village funds. Intention affects fraud behavior in the process of managing village funds.
Fraud, Pentagon Fraud Theory, Village Fund, North Tidore.