PENGARUH INDEPENDENSI AUDITOR INTERNAL DAN SISTEM PENGENDALIAN INTERNAL TERHADAP PENCEGAHAN FRAUD, DENGAN LINGKUNGAN INSTITUSIONAL SEBAGAI VARIABEL MODERASI (STUDI PADA AUDITOR INTERNAL INSPEKTORAT KABUPATEN BUOL)

This study aims to analyze the effect of internal auditor independence and internal control systems on fraud prevention
with institutional environment as a moderating variable. This study uses a quantitative approach with an explanatory
research design. Data were obtained from internal auditors of the Buol Regency Inspectorate through an online
questionnaire using Google Forms. The sampling technique used was census sampling. Data analysis was performed
using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method using SmartPLS software, which
included testing the measurement model, structural model, and significance testing through the bootstrapping procedure.
The results showed that the independence of internal auditors and internal control systems had a positive and significant
effect on fraud prevention. However, the institutional environment was not proven to moderate the effect of internal
auditor independence on fraud prevention, and was proven to negatively moderate the relationship between internal
control systems and fraud prevention. These findings indicate that the effectiveness of internal audit and internal control
systems in preventing fraud does not only depend on technical aspects, but is also greatly influenced by institutional
environmental conditions. Therefore, strengthening a culture of integrity and institutional governance is important to
improve the effectiveness of fraud prevention in the public sector.