The Influence of Internal Control, Compensation Appropriateness and Information Asymmetry on Fraud Tendencies in Banking Agencies

ABSTRACT : This research was conducted to determine the effect of internal control, suitability ofcompensation, and information asymmetry on the tendency of fraud in banking institutions. The independentvariables of this study are internal control, appropriate compensation, and information asymmetry. While thedependent variable is the tendency of fraud at banking institutions. The population of this study is a bank that isincluded in the Book 4 Bank. The research sample used a purposive sampling method using primary data. Basedon the criteria, found as many as 110 samples. Data were analyzed using multiple regression methods and testedusing the Smart PLS 4 statistical tool. This study found that the variables of internal control and suitability ofcompensation had no influence on the tendency to fraud while the information asymmetry variable had aninfluence on the tendency of fraud. This research succeeded in proving that the more information a person gets,the greater the tendency to fraud. The contribution of this research is proof to minimize circulating informationabout the company so as not to create opportunities for someone to commit fraud.

KEYWORDS: Internal Control, Compensation, Information Asymmetry, Fraud, Bank