Factors Affecting Fraud in the Procurement of Government Goods/Services (PBJP): Empirical Study on BPKP in Indonesia

Abstract

This research looks at how BPKP auditors feel about the following factors: the PBJP committee's quality, its income, BPJB systems and procedures, the PBJP's ethics, and its environment. All of these factors have a big effect on procurement fraud in government agencies. The population comprises all PBJP assurance auditors, with a research sample of 141 individuals chosen through purposive sampling. Validity assessment, reliability assessment, multicollinearity analysis, heteroscedasticity testing, multiple regression analysis, hypothesis testing, and finding the coefficient of determination are all parts of testing data. The results show that all of these separate factors have a statistically significant effect on fraud. The PBJP environment has a positive effect on fraud, while the quality of PBJP committees, the income of PBJP officials, PBJP systems and procedures, and PBJP ethics all have a negative effect. Due to the limited scope of this study, extrapolating the results to other countries is not feasible. This study provides important strategic guidelines for policymakers to develop frameworks for better fraud prevention development. This study adds to the literature, particularly on the factors influencing fraud. There is still little research on this topic, particularly in Indonesia. The unique feature of this research is the use of a dataset of professional auditors who investigate most procurement issues.