The Effect of Internal Control, Organizational Commitment, Compensation Fitness, and Organizational Culture in Prevention Goods Procurement Frauds in Denpasar Hospitals

Abstract

Fraud is an illegal act committed by people from within or outside the organization, with the intention of obtaining personal and or group gain that directly harms other parties. Fraud, we often encounter in
government organizations and companies, including hospitals, which
results in losses to the organization, both financially and non-financially. Hospitals are labor intensive and capital intensive industries. The procurement of goods at hospital is a risk of fraud. Therefore, fraud prevention needs to be done because it can detect and prevent fraud early because in connection with the enormous risk in the process of procuring goods and services, it is necessary to have the right efforts and strategies to prevent, detect and disclose fraud that is very likely to occur in the procurement of goods and services. It can be started from prevention carried out in the management sector at the hospital, it is necessary to evaluate the existing system in the hospital management itself. That it is necessary to build and implement internal controls, instill a high race of organizational commitment in each individual, the appropriateness of the compensation received and an organized organizational culture that is expected to create a deterrent against abuses committed by public services, especially in the health sector. There are three factors that cause fraud, namely the existence of opportunities, pressures, and rationalization of the fraud that was committed. This study aims to analyze the effect of internal control, organizational commitment, suitability of compensation, and organizational culture in preventing fraud in procurement of goods at hospitals in Denpasar. The data analysis technique used in this study is multiple linear regression analysis. The number of samples used in this study were 6. The respondents were 56 people. The technique of determining the sample using Purposive Sampling. The results of this study indicate that internal control and organizational commitment have a positive effect on the prevention of procurement fraud, the suitability of compensation and organizational culture does not affect the prevention of procurement fraud.