The Influence of Audit Quality and Whistleblowing System on Fraud Disclosure in Banking Companies Listed on the Indonesia Stock Exchange in 2022-2024

Abstract

This study was motivated by the discovery of a significant increase in fraud cases, especially in the banking sub-sector in Indonesia. This study was conducted with the aim of determining the effect of Audit Quality and Whistleblowing System on Fraud Disclosure (case study of banking sub-sector companies listed on the Indonesian Stock Exchange). There are two independent variables in this study, namely Audit Quality (X1) and Whistleblowing System (X2). There is also one dependent variable, namely Fraud Disclosure (Y). The sample in this study amounted to 90 samples with a total of 47 companies meeting the sample criteria. The location of the study and also the object of the study with financial report data from banking sub-sector companies listed on the Indonesia Stock Exchange (IDX) in the research period 2022-2024. The selection of samples in this study used the purposive sampling method. The type of data from this study uses a quantitative research method. The research instrument used was the financial report document of banking sub-sector companies during the observation period (2022-2024) obtained from http://www.idx.co.id/. This study shows that audit quality does not have a significant effect on fraud disclosure in banking sub-sector companies listed on the Indonesia Stock Exchange during the period 2022-2024. Meanwhile, the implementation of the whistleblowing system has been proven to have an effect on fraud prevention in these companies. This indicates the importance of the role of the violation reporting system in preventing fraud in the banking sector, although other factors such as audit quality do not have a significant effect on fraud disclosure in the period studied.