The Role of Internal Control in Preventing Accounting Fraud in the Public Sector

Abstract

Public sector accounting plays a strategic role in ensuring accountability, transparency, and efficiency in managing public funds. However, the growing number of accounting fraud cases in government institutions indicates weaknesses in internal control systems and governance practices. This study aims to analyze the relationship between the implementation of public sector accounting, the effectiveness of internal control, and fraud prevention based on empirical literature from the past five years. The review results reveal that a strong internal control system, the application of government accounting standards, and ethical behavior among public officials significantly influence the reduction of fraud potential. The implementation of the Government Internal Control System, regular training for public officers, and enhanced community oversight strengthen financial accountability within public institutions. Therefore, public sector accounting serves not merely as a recording mechanism but as a moral and structural control instrument that reinforces institutional integrity, improves transparency, and minimizes the misuse of public resources to achieve good governance in the public sector.