Determinants of auditor fraud tendencies: The moderating effect of individual morality

Dewa Ayu Sri Laksmi Dewi; I Dewa Nyoman Badera; Ni Putu Sri Harta Mimba

doi:10.21744/ijbem.v9n2.2475

Authors

Dewa Ayu Sri Laksmi Dewi
adewi635@gmail.com
Udayana University, Denpasar, Indonesia
I Dewa Nyoman Badera Udayana University, Denpasar, Indonesia
Ni Putu Sri Harta Mimba Udayana University, Denpasar, Indonesia

Keywords:

Fraud Tendencies, Machiavellianism, Love of Money, Organizational Culture, Individual Morality

Abstract

This study aims to provide empirical evidence on the role of individual morality in moderating the influence of Machiavellian traits, love of money, and organizational culture on auditors’ fraud tendencies in Bali. This research employs a quantitative associative approach. The population consists of auditors working in Public Accounting Firms (KAP) in Bali Province registered with the Indonesian Institute of Certified Public Accountants (IAPI). The sample was determined using a non-probability purposive sampling method, resulting in 105 respondents who met the criteria. Data were collected through online questionnaires distributed via Google Forms. The data were analyzed using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) with SmartPLS 4.0. The findings indicate that Machiavellian traits and love of money have a positive effect on fraud tendencies, while organizational culture has a negative effect. Individual morality does not moderate the relationship between Machiavellian traits and fraud tendencies. However, it significantly weakens the influence of love of money on fraud tendencies and strengthens the role of organizational culture in reducing fraud. These results highlight the importance of ethical values, professional integrity, and strong organizational culture in mitigating fraud risks among auditors.

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