THE MODEL OF ISLAMIC WORK ETHIC IN LOWERING A PERSON'S DESIRE TO PERFORM INTERNAL FRAUD ACTION: A DETERMINANT OF CHEATING AS INTERVENING VARIABLE

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1 International Journal of Business, Accounting and Management ISSN : Volume 1, Issue THE MODEL OF ISLAMIC WORK ETHIC IN LOWERING A PERSON'S DESIRE TO PERFORM INTERNAL FRAUD ACTION: A DETERMINANT OF CHEATING AS INTERVENING VARIABLE Hamdani Lecturer at the Economic and business Faculty Muhammadiyah University Tangerang hamdani_82m@yahoo.com Abstract: This research aimed to look at the influence of Islamic work ethic models (EKI) in lowering a person's desire to perform Internal Fraud (IF) action: determinants of cheating as an interven ing variable. To detect internal fraud first analyzed some determinants of cheating such as: pressure (TKN), opportunity (KSPT) and rationalization (RAS). Through the application of EKI was expected to lowering a person's desire to perform internal fraud action. The population in this research was a Cooperative KPP UMKM Syariah. The samples study were 84 people (Managers, area staffs and KCP members) in 19 Branches of Tangerang, 7 Branches of Serang, 2 Branches of Lebak, 2 branches of Pandeglang. The sample technique used Area Probability sample. The technique of data collection through surveys used primary data. Measurements of the variables Islamic Work Ethic (EKI), Determinant of Cheating and Internal Fraud (IF) used a likert scale of 1-5. Data processing used SEM Software PLS 4.0 from WarpPLS.The research results showed that: the line EKI-KSPT-IF, EKI-RAS-IF were proven and the EKI-TKN-IF was not proven. Some variables such as pressure, opportunity, and rationalization of classified were as partial mediator. On syariah cooperative, rationalization was critical to success of internal fraud action. Keywords: Islamic work ethic (EKI), pressure (TKN), opportunity (KSPT), Rationalization (RAS). Internal Fraud (IF). I. Introduction Cooperative loan has risk including trouble credit, human error and cheating (Arfamaini and Sawarjuwono, 2001). Cheating on financial cooperative can involve employees or internal corporate parties in terms of reporting and financial management. The case of cheating on Cipaganti Karya Guna Persada Cooperative involves one President Director and two officers of the company. Since 2008 until may 2014, they cheat customers by gathering funds from 8,700 partners until getting a total of USD 3.2 billion value for residential investment, gas stations, transportation, hospitality, heavy equipment, and mine ( 2014). Business investment scams impersonate cooperative have done by Koperasi Langit Biru (KLB). The leadership of cooperative embezzled belonging to 140 thousands customers that reached Rp 6 trillion. By the lure of getting interest percent, many residents are inveigled (Fokus.news.viva.co.id). Social and community development especially in UMKM business practices, requires the existence of the role of accounting in every economic decision making. Cooperative accounting is the systematic record-keeping system that reflects the cooperative management of transparent and responsible in accordance with the values, norms and principles of cooperation (Lampiran Peraturan Menteri Negara Koperasi Dan Usaha Kecil Dan Menengah Republik Indonesia Nomor 04/Per/M.KUKM/VII/2012). The development of accounting that is so rapidly not only bring benefits to the business world and industry but will be the source of the problem of cheating (fraud) such as: corruption, misuse of assets and the manipulation of financial statements (Dewi, 2014). Fraud (cheating) up to this point is one thing phenomenally not only in developed countries but also in developing countries (Festi T, et.al., 2014). A number of research topics with the manipulation of financial statements, one of which was done by DeChow, et.al., (1996). Testing have done to 92 companies that perform the manipulation of earnings which are then subject to action by the SEC (Security Exchange Commission). The research provides evidence that the desire to obtain cheap financing is the main motivation for companies to manipulate their financial performance. In addition, weak corporate governance structure and the burden of high capital pressure and provide opportunities for the company (Dechow, et.al., 1996). The rise of the Annunciation indication irregularities (fraud) on the company and in the management of the country both in the newspapers and television are increasingly made aware that we have to do something to fix the muddle. Although the main Spotlight currently common in the top management of the company, or what's more against a high official of an agency, but actually the behavior lapses can also occur at various layers of the work of the organization. The law enforcement effort against fraud action during this less brings results. Actions taken by the Government to improve the situation as a whole has yet to show signs of a significant success. The effectiveness of the provisions of the law can not be achieved if not supported norms and ethical values. In the context of the Organization's ethical and moral values, the individual must appear as an organization ethical rules have been codified as a code of ethics and its furnishings (Aofianingsih, 2014). A big challenge for the company with the concept of Syariah, because as good as any system built within the company will not mean when ethics is not executed (Nawatmi, 2010). That is why Islamic work ethic are b ecoming very important for Islamic finance institutions particularly on KPP UMKM Syariah Cooperative. The operational of KPP UMKM Cooperative refers to 35

2 provisions of the Qur'an and Sunnah, specifically the regarding Islamic business procedures. Through the implementation of Islamic values and Islamic work ethic will guide economic activity in accordance with the guidance of Islamic jurisprudence. Someone doing fraud is based on three things, namely the existence of the chance (opportunity ), incentive or pressure (pressure or incentive) and rationalization (rationalization). These factors reinforce each other and form a pillar rigged with triangular fraud (fraud triangle) (Sukirman and Sari, 2013). The other reason, fraud action occurs because companies do not carry out with the good work ethic. As a result of injustices occurred, the emergence of moral hazard, greasing the palm and others (Nawatmi, 2010). The application of business ethics of Islam is influential negative significant against the tendency of accounting fraud in financial reporting. This means that cultural entity with a low ethical standards have a high fraud risk accounting, as otherwise the entity with a high ethical standards can prevent the occurrence of accounting fraud. Maharani (2013), test the influence of Islamic business ethics against the tendency of cheating in financial reporting. The conclusion provides strong evidence that Islamic business ethic has significant effects of the negative against fraud in financial reporting in public agency in Indonesia. Based on the practice of the accounting fraud perpetrators can happen on internal company that engages employees and management of the company (internal fraud). the practices of cheating employees may be misuse of assets. While the practice of cheating that involves the management of the wrong providing can be incurred because of the cheating financial reporting. The management and employees of cheating usually to satisfy corporate interests or personal interests. As in the case of Enron, fraud involving executives by providing financial reports is wrong with raising compensation to profit greatly from the company (Pu tra, 2012). Cheating done management by doing the mark-up of the financial statements the purpose is to make management looked successful, gaining large profits so that management is maintained (Umar, 2012). Research by identifying variables that can influence the occurrence of cheating on a Syariah Micro small and Medium Business (UMKM) is only a few done at the present. The researchers more have focused their research on large companies. Thus the research on UMKM Syariah is interesting to be examined because of not many do. Through in-depth study is expected to be obtained information related to potential internal fraud in the UMKM sector and prevention efforts. This research initiates an important aspect in the detection and the efforts of prevention of the occurrence internal fraud committed by employees of the company by using a model of Islamic work ethic. Thus the Islamic work ethic is expected to reduce the occurrence of internal fraud action. Model research can be seen in the figure 1. Figure 1. Research Model This research was conducted on a KPP UMKM Syariah. The samples study are 84 people (Managers, area staffs and KCP members) in 19 Branches of Tangerang, 7 Branches of Serang, 2 Branches of Lebak, 2 branches of Pandeglang. The sample technique use Area Probability sample. The technique of data collection through surveys uses primary data. Measurements of the variables Islamic Work Ethic (EKI), Determinant of Cheating and Internal Fraud (IF) us e a likert scale of 1-5. Data processing use SEM Software PLS 4.0 from WarpPLS. This research is expected to contribute to the efforts of building management ideological by using the model of Islamic work ethic in lowering a person's desire in doing internal fraud action at KPP UMKM Syariah. II. The Study of Literature and Hypothesis 2.1 The influence of Implementation of Islamic Work Ethic Models Against Pressure and its Implications on Internal Fraud. Internalization of Islamic values into the work ethic able to guide the activities of employees in accordance with ethical values. With the implementation of the Islamic work ethic can reduce the occurrence of fraud action (Maharani, 2013). Risk of fraud tend to be greater when one is in a circumstantial pressure and low integrity. Diany and Ratmono (2004) explain that the pressure is positive and significant effect against the cheating financial report. While Hall (2001) in Diany, Y.A dan Ratmono, D. (2004) explains that the high pressure, the high opportunity and low personal integrity have a greater risk of fraud. In contrast to the low pressure, low opportunity and low personal integrity have a lower risk of fraud. When the pressure is there, then the employees who carry out 36

3 Islamic work ethic with good won't do the actions of internal fraud. Thus this argument could be used in formulating the hypothesis as follows: H 1 = there is the influence of the implementation of the Islamic work ethic model against pressure and its implications on internal fraud. 2.2 The Influence of Implementation of Islamic Work Ethic Models Against the Opportunity as Well as its implications on Internal Fraud. The Risk of fraud likely will be even greater when one has the chance to do internal fraud. Diany and Ratmono (2004) explain that the chance of a positive and significant effect against the cheating financial report. Employees who carry out Islamic work ethic with good won't do the actions of internal fraud. Through Islamic work ethic will form a good integrity so as not to do the internal fraud action although there are chance or opportunity. Thus this argument could be used in formulating the hypothesis as follows: H 2 = there is the influence of the implementation of the Islamic work ethic models against the opportunity as well as its implications on internal fraud. 2.3 The Influence of Implementation of Islamic Work Ethic Models Against Rationalization ond Its Implication on Internal Fraud The risk of fraud likely will be even greater if the person doing the rationalizing. When there is rationalization, then employees who carry out Islamic work ethic with good won't do the actions of internal fraud. This kind of awareness is growing because of the practice of the Islamic values are integrated in the work ethic as a motivation to work properly. Therefore Islamic work ethic into the power of the employees integrity to not do internal fraud. Through Islamic work ethic will form a good integrity so that it does not do justification of internal fraud action. Thus this argument could be used in formulating the hypothesis as follows: H 3 = there is influence of implementation of Islamic work ethic against rationalization and its implication on internal fraud. III. Methodology 3.1 Design and Sample Research The research method was designed as an empirical study in order to provide evidence of the implementation influence of the Islamic work ethic model in influencing internal fraud by looking at the cheating determinants on KPP UMKM Cooperative Syariah in Tangerang Regency. This research used descriptive research approach and case method. This research data is the quantitatif data using ordinal data (Santoso, 2014). The samples study are 84 people (Managers, area staffs and KCP members) in 19 Branches of Tangerang, 7 Branches of Serang, 2 Branches of Lebak, 2 branches of Pandeglang. The sample technique used Area Probability sample. The technique of data collection through surveys used primary data. 3.2 Research Instrument The instruments of research used likert scale ordinal data 1-5 (1 = strongly disagree 2 = disagree, 3 = Quite agree, 4 = Disagree, 5 = strongly agree). To test the reliability and validity of the research instrument used three testing, i.e. convergent validity, discriminant validity, and composite reliability test. Convergent validity and discriminant validity test were used to test the indicators validity of each variable, whereas the composite reliability test was used to measure the reliability of indicators that measure invalid constructs. a. Islamic Work Ethic Islamic work ethic is moral guidelines derived from the Qur'an and Sunnah which guides employee activity in the work, so they can tell which is good and bad, useful and not useful that indicated with good performance. Islamic work ethic variable measured using instrument Amaliah, et.al., (2013) consisting of 13 indicators. b. Internal Fraud Internal fraud is internal cheating committed by employees and management. Instruments used for measuring internal fraud developed from Purta research (2012) by looking at the accounting fraud committed by employees of both internal corporate and management. c. Determinant of Cheating Determinant of cheating consists of pressure, opportunity and rationalization. Determinant instrument of cheating by using model-based fraud detection of fraud triangle developed by Sukirman and Sari (2013). 37

4 IV. Analysis and Research Results 4.1 Evaluation Model Of The Measurement From data obtained as many as 84 respondents consisting of: Managers of KCP, area staffs and representatives of the member. Then conducted testing of Partial Least Squares (PLS) as follows: a. Convergent validity Table 1. Loading factor value of each Indicator No Laten Variabel Indicator Symbol Loading factor value 1 Islamic work ethic (EKI) EKI EKI EKI EKI EKI EKI EKI EKI EKI EKI EKI EKI Pressure TKN TKN Opportunity KSPT KSPT Rationalization RAS RAS Internal Fraud IF IF Source: Research Data are processed The size of the reflective individual is said to be high if correlated over 0.70 with construct that wants measured (Chin, 1998 in Ghozali, 2014:39). But for exploratory research more than 0.6 is considered quite (Chin (1998), Chin (2010b), Hair et. al. (2010), Hair et. al. (2012), in Latan and Ghozali, 2012:81). In the table above indicates that loading each latent variable indicator EKI, DK, and IF convergent validity are qualified because they have a value of more than 0.6 (Chin, 1998 in Ghozali, 2014:39). 38

5 b. Discriminan validity Table 2. Average Variances Extracted (AVE) Average variances extracted EKI TKN KSPT RAS IF Source: Research data are processed From the testing result above shows that the value of the average variance extracted (AVE) are qualified above 0.50 as recommended by Fornell and Larker (1981) in Ghozali (2014). c. Composite reliability A construct is revealed reliability if the value of the composite reliability above 0.70 (Ghozali and Latan, 2014:95). The results of the composite reliability showed satisfactory values where each value is exceeded the 0.7. Table 3.Composite Reliability dan Cronbach Alpha No Contruct Composite Reliability Cronbach Alpha 1 Islamic work ethic (EKI) Pressure Opportunity Rationalization Internal Fraud (IF) Source: Research Data are processed 4.2 The Results of Inner Models Or Structural Model Testing inner model or structural model was done to look at the relationship between variables, significance and value of R- square model of research. The structural model was evaluated by using the R-square for the dependent variable, Stone-Geisser Q- square test for predictive relevance and t test as well as the significance of the structural parameters of line coefficients. The following table is the result R-square estimation using Smart PLS. Table 4. Latent variable coefficients EKI TKN KSPT RAS IF R-squared coefficients Adjusted R-squared coefficients Composite reliability coefficients Cronbach's alpha coefficients Average variances extracted Full collinearity VIFs Q-squared coefficients Source: Research Data are processed The output results above can be seen that value of R-Square for variable TKN, KSPT, RAS and IF each of 0.064, 0.03, and The coefficient of determination using the R-Square shows variations percentage of endogenous/kriteion construct can be explained by the hypothetical constructs affect it (exogenous / predictors). The higher the R-Square shows a good model. The R- Square is only there for exogenous construct (Sholihin and Ratmono, 2013:72). R-Square construct of pressure indicates that the pressure variation can be explained by the variation of 6.4% EKI, KSPT, RAS and IF. R-Square construct KSPT of 0.03 indicates that KSPT variation can be explained by 3% by the variation EKI, TKN, RAS and IF.. The R-Square value construct RAS of shows that RAS variation can be explained by the variation of 10.4% of EKI, TKN, KSPT and IF. R-Square value construct IF for show that IF variation of 44.7% can be explained by variations EKI, TKN, KSPT and RAS. In addition to seeing the value of R-Square, PLS model also is evaluated by looking at the Q-Square (usually called Stoner- Geisser Coefficient). Q-Square is a measure of nonparametik obtained through blindfolding algorithm that is used to assess the predictive validity or relevance of a set of latent variables in the variable Predictor kriterion. Q-Square is negative while the R-Square value is always positive. Models with predictive validity should have a value of Q-Square is greater than zero (Sholihin dan Ratmono 2013: 72-73). The results of the estimation model study showed a good predictive validity (0.068, 0.041, and 0.468) because of the value above zero. next to see the effect size can look at the table below: 39

6 Table 5. Effect Sizes for Line Coefficients EKI TKN KSPT RAS IF TKN 0.06 KSPT RAS IF Source: Research Data are processed The estimation results of the effect size indicates EKI influence against TKN of 0.06, EKI influence against KSPT of 0.032, influence of RAS against EKI The influence of TKN against IF of 0.042, KSPT influence against the IF of 0.13 and influence RAS against the IF of The Effect size that belongs to the weak is the influence of EKI against TKN of 0.06, EKI influence against KSPT of 0.032, EKI influence against RAS of 0.055, TKN influence against the IF of because it is still not far from The value of the effect size not far from 0.02 showed that the influence of Predictor latent variables is very weak of practical view (practical points of view). Effect size that qualifies as a medium is the influence of KSPT against IF of 0.13, the influence of RAS against the IF of 0.154, because those values are approaching With the help of the Program WarpPLS 4.0 can be acquired index fit as follows: Table 6. Model fit and quality indices Model fit and quality indices Average line coefficient (APC)= (APC)=0.183, P=0.007 Average R-squared (ARS)=0.157, P=0.014 Average block VIF (AVIF)=1.601, acceptable if <= 5, ideally <= 3.3 Source: Research Data are processed The output index fit in the picture above shows that all three indicators of fit have met the criteria. The output shows the results of goodness of fit of the model criteria have been met by the value of the APC = ARS = 0.157, with a significance value of p = and less than The value of 1,601 AVIF less than 5 meets the criteria. Thus the proposed model is supported by the data. The value of p for APC and ARS indicator are needed because both are calculated as the average parameters. Whereas the AVIF as an indicator of multicollinearity must be smaller than 5 so there isn t happen multicollinearity in the model. 4.3 The Results Of Hypothesis Testing Test hypotheses on the influence of a construct against other construct was known by looking at the value of t- statistic and correlation measurement of the correlation coefficient used as parameter coefficient. Testing was done using the trust level that is 95%. The following are the results of hypothesis testing each variable as follows : a. There was the influence of the implementation of the model work ethic Islami (EKI) against pressure and its implications on internal fraud (IF). Based on the results of calculations SEM PLS test indicated that EKI gave negative influence against pressure evidenced by the regression coefficients (β) of and significant at a p value of less than 0.01 (under 0.05). Pressure gave positive influece against IF evidenced by the coefficient regression (β) of 0.0 9, but not significant at p value 0.14 (above 0. 05). Therefore the pressure cannot mediate the influence between EKI against IF. To test SEM-PLS mediation can use the VAF method (Variance Acconted For) using the formula influence indirectly (indirect effect) divided the total influence (total effect). The total influence is direct influence added with indirect influence. If the VAF value above 80%, pressure is as full mediator. If the value of the VAF 20%-80%, it is categorized mediator partial. However, if the VAF less than 20%, it is said to be virtually no effect of mediation (Hair et.al., 2013 dalam Sholihin dan Ratmono, 2013:82). In testing the pressure as the influence mediator of Islamic work ethic against the IF. The calculation of VAF value can be seen in the table below: Table 7. Calculation of The VAF Line EKI-TKN-IF The indirect influence = * 0.09 The influence of pressure against EKI = and the influence of pressure on IF = The direct influence The influence of EKI against IF = The total influence VAF the indirect influence/total influence = /

7 The VAF calculation results of the value or %. The value of % are under 20%, so almost no pressure effects of mediation. Thus H 1 was denied and the pressure was almost no effects of mediation. Risk of fraud will be even greater if a person was in distress situation and had a low integrity. Through the implementation of Islamic work ethic on KPP UMKM Syariah Cooperative was expected to build high integrity. Through the implementation of Islamic work ethic employees will be able to distinguish what was good and what was not good. Thus the Islamic work ethic could decrease someone's cheating, being in the circumstances and the situation of distress. b. There was the influence of the implementation of the model work ethic Islami (EKI) against opportunities as well as its implications on internal fraud (IF). Based on the results of calculations SEM PLS test in table 4.14 PLS show the EKI line against opportunity with the p value 0.02 and estimation coefficient value (β) of The line opportunity against internal fraud with p value is less than 0.01 and estimation of coefficients (β) is Because the p value is much less than the critical value of 0.05 (5%), statistically proven work ethic Islami gives effect directly against the chance and the opportunity to significantly effect directly against internal fraud. Thus Islamic work ethic gives influence indirectly against internal fraud due to opportunity. In other words, the opportunity becomes a strong mediator variabel of EKI and IF influence. To test SEM-PLS mediation could use the VAF method (Variance Acconted For) using the formula influence indirectly (indirect effect) divided the total influence (total effect). The total influence is direct influence added with indirect influence. If the value is above 80% pressure VAF as full mediator. If the value of the VAF 20%-80% categorized mediator partial. However, if the VAF less than 20% is said to be virtually no effect of mediation (Hair et.al., 2013 dalam Sholihin dan Ratmono, 2013:82). In testing, this opportunity as the mediator of the Islamic work ethic influence against the IF. The calculation of VAF value can be seen in the table below: Table 8. Calculation of The VAF Line EKI-KSPT-IF The indirect influence = * 0.24 The influence of EKI against opportuniy = and the influence of opportunity against IF = The direct influence The influence of EKI against IF = The total influence VAF the indirect influence/total influence = / The VAF calculation result of the value is or %. The value of % are between 20%-80%, %, so the opportunity are categorized partial mediator. Thus the H 2 are received and the opportunity is as a partial mediator. The risk of internal fraud will be even greater if employees knew the gaps where cheating could be done, coupled with a low employee integrity. Through the implementation of Islamic work ethic on KPP UMKM Syariah Cooperative KPP SMEC Syariah was expected to build high integrity. Because the employees who carried out Islamic work ethic will be able to distinguish what was good and what was not good. This kind of internal awareness, employees of KPP UMKM Syariah Cooperative will keep away from infamy and and do not perform an internal fraud. Thus the intensity of cheating will increasingly diminish or even disappear. c. There was the influence of the implementation of the model work ethic Islami (EKI) towards the rationalization and its implication on internal fraud (IF). Based on the results of SEM PLS test calculations indicate a line of EKI against rationalization with p value is less than 0.01 and estimation of coefficients (β) is Rationalization of the line against internal fraud with p value is less than 0.01 and estimation of coefficients (β) of Because the p value is much less than the critical value of 0.05 (5%), prove n statistically the most influential Islamic work ethic directly towards the rationalization and rationalization significantly influences directly against internal fraud. Thus the Islamic work ethic had influence indirectly against internal fraud due to rationalisation. In other words, the rationalization became the strong mediator ovariable of EKI and IF influence. To test SEM-PLS mediation can use the VAF method (Variance Acconted For) using the formula influence indirectly (indirect effect) divided the total influence (total effect). The total influence is direct influence added with indirect influence. If the value is above 80% pressure VAF as full mediator. If the value of the VAF 20%-80% categorized mediator partial. However, if the VAF is less than 20% are said to be virtually no effect of mediation (Hair et.al., 2013 dalam Sholihin dan Ratmono, 2013:82). 41

8 Table 9. Calculation of The VAF Line EKI-RAS-IF The indirect influence = * 0.28 The influence of EKI against rationalization = and the influence of rationalization against IF = The direct influence The influence of EKI against IF = The total influence VAF the indirect influence/total influence = / The VAF calculation results of the value is or %. The value of % are between 20%-80%, so the rationalization is categorized partial mediator. Thus the H 3 is received and the rationalization is as a partial mediator. The risk of internal fraud will be even greater if employees were performing a justification of the action not good or rationalization. Through the implementation of Islamic work ethic on KPP UMKM Syariah Cooperative proven could reduce employee rationalization to perform internal fraud. The reasoning was because of more emphasis on morality and ethics. Therefore Islamic work ethic were becoming increasingly important as guidelines and considerations in determining rational decisions. V. Conclusions, Limitations And Further Research 5.1 Conclusions a. The hypothesis stating there the influence of the implementation of the model of Islamic work ethic against pressure and its implications on internal fraud were rejected. Evidenced by looking at the influence of EKI against pressure was obtained value of regression coefficient (β) of and significant at a p value of less than 0.01 (under 0.05). Line of Pressure gave positive effect against IF evidenced by regression coefficients (β) of 0.0 9, but not significant at p value 0.14 (above 0.05). The results of the VAF calculation indicated value of or %. The value of % are under 20%, then almost no pressure effects of mediation. b. The hypothesis stating there the influence of the implementation of the model of Islamic work ethic toward the opportunities as well as its implications on internal fraud was acceptable. Evidenced by looking at the influence of EKI against opportunity retrieved p value of 0.02 and value estimation of the coefficients (β) of While the opportunity gave a positive influence and significant on internal fraud with p value less than 0.01 and estimation of coefficients (β) of Statistically proven influential indirectly against internal fraud with the opportunity. The results of the calculation of the value of indicates the VAF or %. The value of % are between 20%-80%, then the opportunity was categorized partial mediator. c. Hypothesis stating there the influence of the implementation of the model work ethic against rationalization as well as against Islamic implication on internal fraud was acceptable. Evidenced by looking at the influence of EKI towards rationalization of the retrieved p value less than 0.01 and estimation of coefficients (β) of Rationalization of the line against internal faud with value p value was less than 0.01 and estimation of coefficients (β) of The results of the calculation of the value of indicated the VAF or %. The value of % were between 20%-80%, then rationalizing was categorized partial mediator. 5.2 Limitations The sample of this research was quite small as many as 90 people but can be processed as many as 84 prespondents. This research was conducted only on employee of KPP UMKM Syariah Cooperative. One Syariah Cooperative was too little so that it will be an obstacle in making generalizations. Sub-variable of determinants of cheating such as pressure, opportunity and rationalization cannot be strong mediator, so the influence of the independent variable on the dependent variable correlation coefficient value was too low. Syariah cooperative in implementing the Islamic values are not easy to do. As attitudes and behaviours that exemplified the Prophet Muhammad SAW: shiddiq, fathonah, amanah dan tabligh (Pedoman Umum Good Corporate Governance Bisnis Syariah. 2011). 5.3 Further Research Research on fraud occurring on the grassroots is not much to do. Further research can take a larger sample on some Cooperative which apply Syariah principles. 42

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