The Role of Tri Kaya Parisudha as a Moderator in Whistleblowing Systems and the Effectiveness of Internal Controls for Fraud Prevention

Microfinance institutions play a significant role in the economy, serving as a credible tool for poverty alleviation and promoting financial inclusion in developing countries. This research explores the impact of both whistleblowing systems and the effectiveness of internal controls on fraud prevention. Additionally, it investigates the moderating role of Tri Kaya Parisudha's cultural influence. The study was conducted at the Village Rural Institution in Denpasar City, involving an analysis of 392 individuals. A non-probability sampling method was employed, utilizing a saturated sampling technique. Hypotheses were tested at a 5 percent significance level using Partial Least Square (PLS) analysis. The findings indicate that both the whistleblowing system and the effectiveness of internal control have a positive influence on fraud prevention. Moreover, the Tri Kaya Parisudha culture enhances the impact of the whistleblowing system on fraud prevention. However, Tri Kaya Parisudha's culture does not act as a moderator for the effect of internal control effectiveness on fraud prevention.