American Journal of Economic and

Management Business

p-ISSN: XXXX-XXXX

e-ISSN: 2835-5199

Vol. 2 No. 1 January 2023

THE EFFECT OF A SITUATIONAL LEADERSHIP STYLE AND

THE APPLICATION OF ACCOUNTING INFORMATION

SYSTEMS TO FRAUD ON VILLAGE FUND MANAGEMENT IN

TANGERANG DISTRICT

Yudha Brata

Postgraduate Universitas Mercu Buana Jakarta, Indonesia

Email: yudhabrata76@gmail.com

Abstract

The research is motivated by the many cases of corruption, especially when the

management of village funds began to be implemented. This type of quantitative

research with survey techniques using closed questionnaire 5 Likert scale choices.

Affordable population 224 people. A sample of 90 people was taken by simple random

sampling. The results showed: 1) Situational leadership style in the Good category. 2)

Application of AIS in the Good category. 3) Management of village funds has the

potential to cause fraud. 4) Situational leadership style has a significant effect on fraud

with a negative correlation that is if the situational leadership style increases, the

potential for fraud decreases. 5) The application of SIA has a significant effect on

Fraud, with a negative correlation that is if the application of AIS is high, the potential

for fraud is reduced. 6) Situational leadership style and application of AIS together

influence fraud. The determination index shows that 71.5% of fraud is influenced

jointly by the Situational Leadership Style and Application of AIS.

Keywords: Situational Leadership Style, AIS, Fraud.

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International

INTRODUCTION

A study on the trend of corruption cases in the 2018 period shows that the

phenomenon of corruption in the regions has become more widespread after the

implementation of village fund allocations, although when compared to the budget

provided by the government, the state losses are relatively small, but this indicates that

corruption has occurred at the lowest level of government, namely the village which in

practice takes refuge behind the concept of participation. Supervision of village funds is

regulated by Law no. 6 of 2014, but not yet fully implemented, this is indicated by

many problems in the management of village funds. Does leadership style have an

influence on cheating? Does the application of the Accounting Information System have

an influence on fraud? Does the leadership style and the implementation of the

Accounting Information System simultaneously have an influence on fraud?

American Journal of Economic and Management Business

Vol. 2 No. 1 January 2023

In simple terms, fraud is defined as an act of fraud, including lying, stealing,

fabricating and embezzling those committed by people inside and or outside the

organization with the intention of obtaining personal or group benefits (Nainggolan,

2022).

Many theories put forward the factors that cause cheating, including the Fraud

Triangle theory developed by (Cressey, 1986) which states that cheating is caused by

pressure / encouragement, opportunity, and justification. Among these 3 factors, the

opportunity factor is most likely to be minimized through the application of good

processes, transparent financial implementation procedures, control and early detection

of problems that occur. Fraud in this study is measured to be limited to the act of

cheating in the dimension of Diamond Fraud, namely: 1) Pressure; 2) Opportunity; 3)

Rationalization (Rationalization); 4) Capability.

According to (Susanto, 2017) defines SIA as a collection of physical and non-

physical sub-systems that are interconnected and work together harmoniously to process

transaction data related to financial issues into financial information. Azhar Susanto

(2017: 8) states that the accounting information system is built with the main objective:

"processing financial data from various sources into accounting information required by

various kinds of assessments".

(Romney & Steinbart, 2015) suggest that the components of the Accounting

Information System consist of: 1) People who use the system; 2) Procedures and

instructions used; 3) Data regarding organizations and business activities; 4) accounting

data processing software; 4) Information technology infrastructure; 5) Internal control

and security measures. The implementation of SIA is measured from the dimensions

according to the opinion of Azhar Susanto (2017: 207), namely: 1) Hardware; 2)

Software (Software); 3) Otrak Device (Brainware); 4) Procedure; 5) Database 6)

Communication Network.

According to (Stoner et al., 1996) leadership tasks include: 1) making decisions;

2) developing the imagination of subordinates; 3) develop follower loyalty; 4) initiator,

activation and control of the plan; 5) Utilizing human resources and other resources; 6)

Controlling and making improvements to subordinates' mistakes; 7) Give awards; 8)

Delegating authority to subordinates; 8) implementation of decisions.

According to (Yukl, 2010) states that there are 14 principles of leadership

behavior, namely: 1) Planning and organizing (planning and organizing); 2)

Troubleshooting (problem solving); 3) Explaining roles and objectives (clarifying roles

and objectifies); 4) Providing information (informing); 5) Monitoring (monitoring); 6)

Motivating and inspiring (motivating and inspiring); 7) Consulting (consulting); 8)

Delegating (delegating); 9) Provide support (supporting); 10) Developing and guiding

(developing and mentoring); 11) Managing conflict and team (managing and team

building); 12) Building a network (networking); 13) Recognizing; and 14) Giving gifts

(rewarding).

The leadership style of each leader tends to differ from situation to situation

(Khoironi & Hamid, 2020). Situational leadership style suggests that effective leader

behavior must always pay attention to the situation at hand, and treat subordinates

according to their respective needs (Mustapa et al., 2018).

Measurement of leadership style in this study is taken from several indicators

developed from several dimensions, namely: 1) Leaders' directions and directions; 2)

leadership relationship behavior; 3) readiness level of followers.

Yudha Brata

RESEARCH METHODS

The research was conducted in Tangerang Regency. The study population was

224 people. Samples were taken for research purposes as much as 40% of the

population or as many as 90 people randomly. The data analysis method used is

descriptive correlational.

RESULT AND DISCUSSION

General Description

The leadership style applied in the Tangerang district government has worked

well. The implementation of SIA in the Tangerang Regency Government is in the good

category and the management of village funds in the Tangerang district government is

in the category of potential fraud.

Data Analysis

Table 1. Correlation

Leadership

style

Implementat

ion of AIS

Fraud

Leadership

style

Pearson Correlation

0.830

-0.771

Sig. (2-tailed)

0.000

Implementati

on of AIS

Pearson Correlation

0.830

-0.827

Sig. (2-tailed)

0.000

Fraud

Pearson Correlation

-.771

-0.827

Sig. (2-tailed)

0.000

**. Correlation is significant at the 0.01 level (2-tailed).

Table 2. Determination Koeficient

Model

R Square

Adjusted R Square

Std. Error of the

Estimate

0,845

0.715

.708

1.649

a. Predictors: (Constant), Implementasi SIA, Gaya Kepemimpinan

b. Dependent Variable: Fraud

Tabel 3. Multiple Regression

Model

Unstandardized Coefficients

Standardize

d Coeff

Sig.

Std. Err

Beta

(Constant)

67.16

2.30

29.18

0.000

Leadership Style

-0.23

0.08

-0.29

-3.04

0.003

AIS Implementation

-0.55

0.09

-0.59

-5.99

0.000

Dependent Variable: Fraud

American Journal of Economic and Management Business

Vol. 2 No. 1 January 2023

Discussion

The correlation coefficient between the variable leadership style and fraud is -

0.771 at df = 89. Based on the criteria it can be seen that the sig. <0.05 so that the

correlation that occurs between the Leadership Style variable and Fraud is a significant

correlation in the reverse direction, meaning that if the Leadership Style increases, then

Fraud decreases.

The correlation coefficient between the variable AIS application and fraud is -

0.830 at df = 89. The value of sig. <0.05, so the correlation that occurs between the

variable AIS application and fraud is a significant correlation. The R value obtained is

0.851 close to number 1, so the simultaneous correlation between Leadership Style and

SIA Implementation with Fraud is in the very strong category.

Leadership style together with the implementation of SIA provides a relatively

large and significant contribution to fraud. This is indicated by the acquisition of the

value of R ¬2 (coefficient of determination) = 0.716 (71.6%), or Ῡ = 67.20 + (-0.23X1)

+ (- 0.55X2).

First hypothesis test: Ῡ = -11.05 +1.15X1. This equation provides information that

the addition of one leadership style score will be followed by a decrease in the score of

1.15 cheating. The correlation coefficient (r) of 0.795 indicates a strong relationship or

an index of determination of 0.630, which means that 63% of leadership styles influence

fraud, the rest is determined by other factors.

Second hypothesis test: Ῡ = 20.85+0.88X2. This equation provides information

that the addition of one score for the implementation of AIS will be followed by an

increase in the score of fraud. The correlation coefficient (r) is 0.675 or the

determination index is 0.456, indicating that 45.6% of fraud is determined by the

implementation of SIA, the rest determined by other factors.

Third hypothesis test: Ῡ = 67.17+(-0.24X1)+(-0.55X2). This equation provides

information that the score of cheating will decrease 0.23 times if there is an addition of

one leadership style score, and will decrease by 0.55 if there is an addition of one score

for the application of SIA. R = 0.845 (84.5%) or with a contribution of R2 = 0.715

(71.5%), the price of the correlation coefficient (R) = 0.845 or the index of

determination (R2) of = 0.715 indicating that 71.5% fraud is determined collectively -

the same by the leadership style and the application of AIS.

CONCLUSION

There is a direct and significant influence of leadership style on the potential for

fraud. There is a direct and significant effect of the implementation of SIA on potential

acts of fraud. Simultaneously there is a direct and significant influence on the

implementation of AIS and transformational leadership styles on the potential for fraud.

REFERENCES

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Yudha Brata

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Yudha Brata (2023)

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