Abstract:
This article describes the phenomenon of fraud occurring
due to weak internal control system. Based on a study
conducted by the Association of Certified Fraud Examiners
(ACFE), one of the major causes of fraud is lack of internal
control, or 29%, and override of existing internal control, or
20%. (ACFE, 2016). The phenomenon of fraud is still very
common in Indonesia. Poor organizational governance
is also part of the major causes of fraud. Corruption in
Indonesia has spread to all sectors, including the education
sector. There are many cases of corruption occurring in
schools involving principals, treasurers, and teachers. The
world of education in Indonesia is severely tarnished by
the involvement of teachers in several cases of fraud. If this
continues, the world of education will no longer be a role
model. Improved organizational governance is necessary
for early detection of fraud. This is intended to save
Indonesia, especially education sector. The establishment
of Internal Control Unit in schools is crucial because the
Internal Control Unit serves not only as the implementation
of good school governance but also as a tool to prevent
fraud at schools
