PROACTIVE FRAUD AUDIT, WHISTLEBLOWING SYSTEM, AND INTERNAL CONTROL ON FRAUD PREVENTION IN BOS FUND MANAGEMENT EVIDENCE FROM ELEMENTARY SCHOOLS IN PALU Eusebius Alfonsus Rumengan- Jamaluddin- Ridwan- Ernawaty Usman- Muhammad Ansar
Tadulako University
Abstract
This study examines the proactive fraud audit, whistleblowing system, and internal control on fraud prevention in the management of School Operational Assistance (BOS) funds in elementary schools across Palu City. The issue of BOS fund irregularities remains a relevant challenge in Indonesia, particularly in post disaster regions where administrative capacity fluctuates and oversight mechanisms are strained. Using a quantitative approach with structured questionnaires distributed to treasurers, operators, and administrative officers directly involved in BOS management, the study employs PLS-SEM analysis to generate reliable empirical findings. The results reveal that proactive fraud audit and internal control significantly enhance fraud prevention, while the whistleblowing system shows no significant effect. These findings highlight the importance of strengthening structural and procedural controls within school financial governance, with novelty lying in the empirical integration of fraud audit practices and internal control mechanisms as key determinants of fraud prevention in post-disaster educational contexts.
