The Influence of Morality, Organizational Commitment, and Information Asymmetry on Fraud (Tendency Toward Deceptive Practices)

Fraud is a detrimental act that can cause significant harm to an organization or entity. Such misconduct is often committed by individuals who are entrusted with the responsibility of safeguarding the entity against activities that may threaten its sustainability. The Village Credit Institution (Lembaga Perkreditan Desa/LPD) is one of the vital assets and sources of income for traditional villages (desa adat), thereby requiring proper governance to prevent fraudulent practices by its management, employees, and supervisory bodies. In general, LPDs aim to improve the welfare of villagers and preserve the existence of traditional villages in Bali Province. Fraud in the accounting context refers to deviations from accounting procedures that must not be applied within an entity.This study seeks to examine the influence of several factors—namely morality, organizational commitment, and information asymmetry—on the tendency toward accounting fraud. The research sample consists of 12 actively operating LPDs located in Tabanan District. Respondents include the chairperson, secretary, and treasurer of each LPD, resulting in a total of 36 participants. Data were collected through questionnaires, of which three were incomplete, leaving 33 valid responses for analysis. The data were analyzed using Multiple Linear Regression. The results reveal that all three variables—morality, organizational commitment, and information asymmetry—have a significant influence on the tendency toward fraud.