Development of IT-based information systems as an anti-fraud framework for automotive repair businesses

Purpose This study aims to explore the development of IT-based information systems to strengthen internal controls and support anti-fraud frameworks within organizations. Design/methodology/approach This qualitative case study collected data through observations, interviews, focus group discussions (FGDs) and direct participation in the innovation process of developing IT-based information systems that support internal controls in an Indonesian automotive repair company. The study adopted the plan–do–check–action (PDCA) method to guide organizational innovation and develop an anti-fraud framework. Findings The findings demonstrate that PDCA-driven innovation successfully enhanced the company’s IT-based information system by addressing fraud risks arising from weaknesses in internal controls. The improvements included the automation of previously manual processes and the redesign of authorization mechanisms to strengthen the segregation of duties. These innovations also improved workflow efficiency and accelerated operational processes. Research limitations/implications The proposed framework provides a practical reference for organizations seeking to strengthen internal controls and reduce fraud risk through PDCA-driven IT innovation. The framework may also serve as a replicable model for organizations with similar operational characteristics, particularly in emerging economies. Practical implications The proposed framework provides a practical reference for organizations seeking to strengthen internal controls and reduce fraud risk through PDCA-driven IT innovation. The framework may also serve as a replicable model for organizations with similar operational characteristics, particularly in emerging economies. Social implications At a broader level, strengthening technology-enabled fraud prevention mechanisms may contribute to greater transparency, accountability and trust among organizational stakeholders. By promoting more reliable and responsible business practices, the proposed framework may support a more ethical and trustworthy organizational environment. Originality/value This study proposes an IT-based anti-fraud framework developed through a modified PDCA approach, illustrating how continuous improvement can be integrated with information systems to strengthen internal controls and mitigate fraud risk.