Internal Control Effectiveness, Compensation Suitability, Information Asymmetry, and Management Morality impact to Unethical Behavior on Accounting Fraud

Authors

  • Visensius Jericho Brian Aditama Universitas Tarumanagara
  • Hendro Lukman Universitas Tarumanagara

DOI:

https://doi.org/10.61536/escalate.v4i4.971

Keywords:

Fraud Accounting, Compensation Suitability, Information Asymmetry, Internal Control Effectiveness, Management Morality

Abstract

Accounting fraud can undermine organizational accountability, making organizational controls and ethical factors important to examine together. This study examined the relationship of internal control effectiveness, compensation suitability, information asymmetry, and management morality with a combined construct of unethical behavior and accounting fraud tendency. A quantitative, non-experimental survey design was used. The target population consists of workers aged 18 to 60 living in Indonesia; 110 respondents were recruited through convenience and snowball sampling. Data were collected using a closed-ended five-point Likert questionnaire via Google Forms and analyzed with descriptive statistics and Partial Least Squares Structural Equation Modeling. Results showed that internal control effectiveness, compensation suitability, and management morality had significant negative relationships with the dependent construct. Information asymmetry was positively but not significantly related. Findings underscore the relevance of effective internal controls, appropriate compensation, and managerial integrity. Future research should measure unethical behavior and accounting fraud tendencies separately and use a larger, more representative sample.

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Published

2026-10-26

How to Cite

Visensius Jericho Brian Aditama, & Hendro Lukman. (2026). Internal Control Effectiveness, Compensation Suitability, Information Asymmetry, and Management Morality impact to Unethical Behavior on Accounting Fraud. Escalate : Economics and Business Journal, 4(4), 863–876. https://doi.org/10.61536/escalate.v4i4.971

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