Fraud Prevention in Bumdes Fund Management with Internal Locus of Control as a Moderating Variable

This study aims to analyze the influence of individual morality and internal control systems on fraud prevention, with internal locus of control as a moderating variable, in Village-Owned Enterprises (BUMDes) in Sumbawa Regency. The study population includes BUMDes leaders and treasurers throughout Sumbawa Regency. The sampling technique used a purposive sampling method with a sample size of 76 BUMDes and 152 respondents, consisting of BUMDes leaders and treasurers. The results of the study indicate that partially, individual morality and internal control systems have a positive and significant effect on fraud prevention. In addition, internal locus of control moderates the influence of individual morality on fraud prevention positively. However, internal locus of control negatively moderates the influence of internal control systems on fraud prevention. The implications of this study provide insight to stakeholders in improving individual morality and the effectiveness of internal control systems to minimize the risk of fraud in BUMDes.