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The Influence of Internal Control Effectiveness and Management Transparency in Preventing Fraud （Production Cost）in PT Sun Kaca Indonesia
Abstract
Fraud in production costs remains a significant organizational risk, with the potential to generate substantial financial losses and diminish stakeholder trust. This study analyzes the impact of internal control effectiveness and management transparency on the prevention of production cost fraud at PT Sun Kaca Indonesia. Employing a quantitative research methodology, data were collected through structured questionnaires administered to 62 employees within the production department. The dataset was processed using validity and reliability assessments, classical assumption testing, and multiple linear regression analysis through IBM SPSS 25. The findings reveal that internal control exerts a significant positive influence on fraud prevention (β = 0.462, p < 0.05), while management transparency also contributes positively, albeit to a lesser extent (β = 0.314, p < 0.05). The study enriches the theoretical discourse on governance mechanisms and fraud prevention, while emphasizing the practical necessity of enhancing internal control systems and transparency practices to strengthen organizational accountability and mitigate fraud risk
Keywords
production costs, fraud, internal control, management transparency.
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