Ethical Accounting Perspectives on Fraud Pervention within Indonesia's MSMEs Ecosystem

Amatus Venantius Sabubun

doi:10.55927/fjst.v5i1.380

Authors

Amatus Venantius Sabubun Universitas Terbuka

DOI:

https://doi.org/10.55927/fjst.v5i1.380

Keywords:

Accounting Ethics, Fraud Prevention, MSMEs, Financial Governance, Ethical Accounting Practices

Abstract

Financial fraud remains a significant issue in Indonesia’s MSME ecosystem, generally driven by weak financial governance and low internalization of ethical values in accounting practices. This study examines the influence of accounting ethics on fraud prevention in MSMEs by analyzing the relationship between ethically based accounting practices and fraud prevention mechanisms. Using a quantitative explanatory research design, data were collected through structured questionnaires from 150 MSME financial owners and managers selected via purposive sampling and analyzed using multiple linear regression. The results show that accounting ethics—reflected in integrity, objectivity, transparency, and accountability—have a positive and significant effect on fraud prevention. These findings confirm that accounting ethics function not only as a normative framework but also as a practical mechanism to strengthen fraud prevention efforts, providing practical implications for policies and programs promoting integrity-based financial governance in MSME development.

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