Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5, 465-477 2024 Publisher: Learning Gate DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate © 2024 by the authors; licensee Learning Gate * Correspondence: razana@uitm.edu.my The effect of attitude towards behaviour, local wisdom culture, whistleblowing intention on fraud prevention Rochman Marota1, Ida Rosnidah2, Razana Juhaida Johari3* 1Accounting Department, Faculty Economics and Business, Pakuan University, Bogor, Indonesia. 2Accounting Department, Faculty Economics and Business, Swadaya Gunung Jati University, Cirebon, Indonesia. 3Faculty of Accountancy, Universiti Teknologi MARA, Shah Alam, Malaysia; razana@uitm.edu.my (R.J.J). Abstract: The potential state losses due to corruption cases that occurred in Indonesia from 2017-2021 tend to increase very significantly. This research aims to explore the relationship between attitude and whistleblowing intentions which is also strengthened by local wisdom as well as the role of whistleblowing intention and its influence on fraud prevention. The research method used in this research is a quantitative approach using SEM PLS. The research results show that attitude towards behavior influences whistleblowing intention and whistleblowing intention influences fraud prevention. Meanwhile, the role of local wisdom is not proven to increase the whistleblower's attitude to act to report fraud violations. It is hoped that the results of this research can be used as a consideration in making decisions related to the phenomenon of whistleblowing and fraud in the world of practice and will also become material to be scrutinized in determining applicable regulatory policies to improve local traditions. Keywords: Attitude towards behavior Fraud prevention, Whistleblowing intention, Local wisdom perspective. 1. Introduction Clean government, free from corruption, collusion and nepotism, is a slogan that is often heard when candidates, along with the winning team, a campaign in the context of the election of prospective leaders, both presidential elections, governors, mayors and even down to the level of village head elections. However, it turns out that fraud is still often a trending topic, especially corruption committed by public officials and government officials, which results in the state suffering trillions of rupiah in losses. The potential state losses due to corruption cases that occurred in Indonesia from 2017-2021 tend to increase very significantly; the potential state losses due to corruption can be seen in the following figure: 466 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate Figure 1. Trends in potential state losses 2017-2021. Source: Indonesia corruption watch (ICW). The figure above shows that the trend of corruption cases in Indonesia is increasing significantly every year; the increase indicates that the financial management system both by the government, ministries, and state institutions is still evil and requires earnest attention because corruption has a background of economic crimes committed systematically and widely will violate the social and economic rights of the community (Indonesia Corruption Watch, 2022). During 2021, the Corruption Eradication Commission (KPK) has held six arrest operations (OTT), 49 cases from case building, and 7 cases from money laundering; from these cases, 127 suspects have been named consisting of law enforcement officials, legislative members, regional heads, and private parties. The cases handled consisted of 48% bribery cases, 44% goods and services procurement cases, 6% money laundering cases, 2% licensing cases, and 1% cases of obstructing the KPK process (Corruption Eradication Commission, 2021). The most detrimental fraud in Indonesia is corruption; this is based on data from a fraud survey in Indonesia conducted by ACFE, as shown in the table below: Table 1. Types of Fraud that harm in Indonesia. No. Type of fraud Number of cases Percentage 1 Corruption 167 69.90% 2 Misappropriation of assets state & company assets 50 20.90% 3 Financial statement fraud 22 9.20% Source: ACFE, 2019. Some of the costly fraud cases that occurred in West Sumatra and Riau include: 1. Corruption case of land procurement for the construction of Regional River Hospital in Dharmasraya Regency, West Sumatra Province, in the 2009 fiscal year. (Supreme Court, Number 47/Pid.Sus-TPK/2014/PN-Pdg) 2015. 2. Corruption case of fictitious accountability letter (SPJ) at the Road Infrastructure, Spatial Planning and Settlement Office (Prasjal Tarkim) of West Sumatra Province for the fiscal years 2012 to 2016. (Padang District Court Number 01/Pid.Sus-TPK/2018/PN.Pdg) 3. Corruption case of clean water installation procurement in Padang Pariaman Regency, West Sumatra. (Supreme Court Number 2185 K/PID.SUS/2016). 467 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate 4. Bribery case for ratifying the Riau Regional Budget Plan (R-APBN) for the 2014 and 2015 fiscal years. (Supreme Court Number 2233 K/PID.SUS/2017) As one of internal control system to prevent fraud and corruption, whistle blowing has expected to accelerate integrity among public officials on their workplace (Zakaria et.al, 2020). Many countries have implemented whistleblowing systems, including Indonesia, such as the Corruption Eradication Commission (KPK), Bank Indonesia (BI), the Ministry of Finance of the Republic of Indonesia (Kemenkeu RI), the Investment Coordinating Board (BKPM), the Public Procurement Policy Agency (LKPP), PT Garuda Indonesia and many others. The whistleblowing system is very dependent on the primary source of the culprit, namely the whistleblower. A person's desire to act on behaviour, in this case including whistleblower behaviour, is influenced by intention or intention and willingness to behave. Intention is the main factor in a person taking an action. West Sumatra, known for its Minangkabau culture and Riau, with its Malay culture, have similar local wisdom values, namely ‘Adat Bersendi Syarak’ and ‘Syarak Bersendi Kitabullah’. This local wisdom shows the conditions and atmosphere of community life that is thick with the strength of Islamic customs and society, which makes ‘yarak’ a foothold for action and action; the meaning of ‘yarak’ here is ‘Islamic Shariah’ which guides the holy book of the Al-Quran and the Prophet's hadith. Every action and behaviour taken by individuals, organizations, and communities must pay attention to the teachings and guidance of Islamic law, including the carrying out of daily tasks. 2. Literature Review 2.1. Behavioural Accounting Theory Behavioural accounting studies play an important role in increasing our understanding of how accounting decisions are made and implemented in a variety of contexts, including in business organizations, financial institutions, governments, and the nonprofit sector. It also helps identify and address ethical issues in accounting as well as improve internal control systems to prevent fraud and errors (Hellman, 2016). This theory refers to an accounting methodology that considers organizational, social, and psychological aspects while attempting to explain a group's or individual's actions within the framework of accounting. Accounting behavioural theory examines how social norms, motivation, perception, and attitudes affect accounting decisions and how those decisions affect an organization's bottom line (Silva et al., 2023). Behavioural theory focuses on the behaviour of individuals who decide to report violations, non-compliance, or fraud that occurs within the organization. This involves understanding the psychological, social, and organizational factors that influence a person's decision to take decision steps taken for the purpose of whistleblowing (Jain et al., 2021). 2.2. Attitude Toward Behaviour Attitude studies all tendencies, actions, favorable and unfavorable, human goals, objects, ideas or situations (Beesley & Hawkins, 2022; Arfan & Muhammad, 2005). The term "attitude" is used for one of these categories: affect. The term "belief" will be used for the second category, cognition, and the term "intention" for the third category, conation (Fishbein et al.; I., 1975). This attitude is categorized into affective, cognitive and conative. Affective consists of feelings, emotions, and evaluations. Cognitive includes beliefs and opinions, while conative includes Intention, will or tendency to behave. Behaviour attitudes relate to the judgments individuals make to carry out a beneficial or otherwise behaviour (Saad and Haniffa., 2014). Attitude toward behaviour is a comprehensive evaluation of a person in performing a behaviour and is determined by solid beliefs about behaviour (Behaviour belief) (Jogiyanto, 2007). Behaviour in this writing is the act of whistleblowing; Attitude to behaviour means Attitude to whistleblowing behaviour, which means a person's tendency to respond to conditions, situations, and events in a good or bad way, which can influence and direct his beliefs, mentality, perceptions, feelings, and motivation to do whistleblowing. Whistleblowing behaviour is the concrete action of reporting violations or non-compliance to the authorities, both within the organization and outside the organization. Even if someone has a positive attitude towards whistleblowing, they may not always take 468 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate steps to report a breach, especially if they feel it is too risky or uncomfortable. An individual's attitude towards whistleblowing can influence their decision to report a violation or not. Positive attitudes towards whistleblowing usually include respect for integrity, courage and fairness. On the other hand, negative attitudes may include fear of negative consequences, such as dismissal or repression. (Detkova et al., 2021). 2.3. Local Wisdom Culture Culture is believed to influence a person's actions and tendencies to behave and act, including whistleblowing. Macnab et al (2007) mentioned that culture could influence the tendency of individuals to report internally and become whistleblowers. Local wisdom is a local cultural value that regulates social life. The operationalization of cultural values in social life is used as wisdom and original knowledge (Sibarani, 2018). Local wisdom often reflects values of ethics, justice, and social responsibility that may influence individual attitudes and actions regarding reporting violations. Local wisdom often emphasizes the importance of integrity and honesty in social interactions. If these values are emphasized in local culture, individuals may feel more compelled to report violations to maintain integrity and fairness in their communities (Parwati et al., 2018). An understanding of local wisdom can help organizations and governments design whistleblowing strategies that are more effective and responsive to the local cultural and social context (Lestari et al., 2024). Minangkabau is a religious society that upholds Islamic values and local wisdom culture, with customs that are still carried out today. Islamic teachings are closely related to Minangkabau culture, and the community is consistent in complying with its customary rules. The strong cultural values in the community are believed to influence everyone’s actions and work. This Minangkabau customary philosophy is known as ‘Adat Basandi Syarak, Syarak Basandi Kitabullah’ (ABS-SBK). The explanation above shows that a person's understanding of the local wisdom value of ‘adat-versed yarak’, ‘yarak- versed Hizbullah’, and a community's original wisdom and knowledge can encourage a person to whistleblowing behaviour. A person's understanding of the value of local wisdom can be seen in his personality traits and attitudes in social society. 2.4. Whistleblowing Intention Whistleblowing can involve reports of legal violations, abuse of power, corruption, financial fraud, discrimination, harassment, or other ethical issues in the workplace or in other organizational contexts (Arkoful, 2022). Whistleblowing often involves risks for the whistleblower, including threats to their career, reputation, and even personal safety. However, whistleblowing can also have a positive impact in correcting non-compliance, increasing accountability, and preventing greater harm to organizations and society in general (Monroe et al., 2021). Whistleblowing is the disclosure of violations or disclosure of unlawful acts, unethical/immoral acts or other acts that can harm the organization or stakeholders, which employees or leaders of the organization carry out to leaders of other organizations or institutions that can act on these violations (KNKG, 2008). These disclosures are generally made on a confidential basis. Disclosures must be made in good faith and not as a personal grievance against a particular company policy (grievance) or based on ill will (KNKG, 2008). Whistleblowing culture provides the following benefits: 1) Potential problems are recognized early, 2) Avoidance of violations, 3) Obtaining important information that reaches the right people to solve the problem, 4) Demonstrating responsibility and good management to stakeholders, regulators, and law enforcement, 5) reducing compensation and costs of unexpected events, investigations, ligations and regulatory reviews. 6) maintenance and enhancement of reputation. (Dzomira, 2015). 2.5. Fraud Prevention Fraud can have detrimental impacts, both financial and non-financial, on individuals, organizations and society. Therefore, fraud detection, prevention, and response are critical in maintaining integrity, 469 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate fairness, and security in various environments (Hagen & Malisa, 2022). Organizations usually have specific policies and procedures for identifying and handling cases of fraud, and they often work closely with law enforcement agencies to follow up on cases of fraud that occur (Tarjo et al., 2022). Fraud committed by someone is driven by three factors: pressure, opportunity and rationalisation, known as the fraud triangle. Fraud prevention relates to measures to prevent fraud and limit the exposure to fraud when it does occur. The primary mechanism for fraud prevention is internal control. Management has the primary responsibility for establishing and maintaining internal controls (ACFE, 2011). Fraud prevention is an organization's initiative to take proactive measures to avoid fraud (N'Guilla Sow et al., 2018). Effective fraud prevention involves two basic activities (Zimbelman et al., 2014), namely: (1) Create and maintain a culture of honesty and ethics; (2) Assess fraud risks and develop concrete responses to reduce risks and eliminate opportunities for fraud proactively by a) accurately identifying sources and quantifying risks, b) implementing appropriate preventive controls and detective controls to reduce those risks, c) establishing thorough monitoring by employees, and d) having internal and external auditors perform performance checks. 5. Hypothesis The positive influence of attitude on behaviour on whistleblowing Intention. Attitudes towards the behaviour can reflect a person's Intention to behave. The better one's Attitude to behaviour, the higher one's Intention to act (Rosnidah et. al, 2018 and Ajzen, 1991). Research conducted by Park and Blenkinsopp (2009) found that positive attitudes significantly affect internal whistleblowing intention. Research by Zakaria, Azmawaty and Yusoff (2016) found that attitude significantly affects internal and external whistleblowing intention. Research by Muhamad Nursalwani and Abdul Latiff Zulariff (2017) found that attitude towards behaviour significantly affects the Intention of Muslim youth at Kelantan University to consume halal-labelled chocolate. Thus, below hypothesis is proposed: H1: Attitude towards behaviour has a positive effect on whistleblowing intention. Moderating the cultural approach of local wisdom in strengthening the effect of Attitude on behaviour on whistleblowing Intention. Local wisdom is the value of culture; culture can encourage someone to act or behave. Research conducted by Edi Suryadi, Kusnendi, Maman Ukas, and Rasto (2007) found that the strength or weakness of local wisdom influences the high level of religious, educational, and scientific behaviour. Research conducted by Xin and Liu (2016) found that each country has its cultural concept; within the country, there is an osmosis evolution with a blend of world cultures, but still cannot get rid of the influence of national culture. In culture, factors were found that made the potential as a whistleblower when getting into trouble in the ethical judgment process. Thus, below hypothesis is proposed: H2: Local wisdom culture moderates the influence of attitude toward behaviour on whistleblowing intention. 5.1. The Positive Effect of Whistleblowing Intention on Fraud Prevention Dzomira (2015) found that a strong internal control system can protect against fraudulent behaviour, as can fraud prevention and detection techniques, one of which is whistleblowing. Yarry, Larasati and Surtikanti (2017) shows that whistleblowing significantly affects fraud prevention. Research by Pamungkas, Ghozali and Achmad (2017) found that the whistleblowing system has a positive effect on preventing financial reporting fraud. Furthermore, research conducted by Tripermata, Syamsurijal, Wahyudi and Fuadah (2021) found that whistleblowing Intention positively affects fraud prevention. Thus, below hypothesis is proposed: H3: Whistleblowing intention has a positive effect on fraud prevention. 470 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate 6. Research Method This research is a causal study conducted to prove the cause and effect of the relationship between variables. (Sekaran, U and Bougie, R, 2016). The sample of this study consists of all local governments in West Sumatra and Riau regions taken from area probability samples, namely regional apparatus organizations at the provincial, city and district levels. Data analysis uses the partial least squares method in structural equation modelling (SEM), which utilizes inner and outer models, two different types of models. This research uses causal quantitative techniques to verify the cause-and-effect relationship between variables and test the hypotheses that have been developed previously. 7. Result and Discussion 7.1. Structural Model Evaluation Evaluation of the structural model collinearity among sets of constructs, the significance of path coefficients, coefficient of determination (R2), effect size (f2), and predictive relevance (Q2 and q2 effect size) (Hair et al., 2014). Structural model evaluation can be done using R2 for the dependent construct, the value of the path coefficient or t-values for each path, to test the significance between constructs in the structural model (Willy et al., 2015). This test is done by looking at the VIF (Variance Inflated Factor) value, and the tolerance value for VIF is less than 5. Structural model path coefficient using the Structural Evaluation Model (SEM) analysis model with the help of the intelligent please three applications. 471 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate Table 2. Structural model evaluation path coefficients. Variable Path coefficients Influence Effect Moderation Original sample (O) Sample mean (M) Standard deviation (STDEV) T statistics (|O/STDEV|) P Values Significance Attitude on behaviour Whistleblowing intention 0.137 0.138 0.066 2.064 0.020 Significant Whistleblowing intention Fraud prevention 0.160 0.168 0.043 3.683 0.000 Significant Moderating effect Attitude on behaviour Whistleblowing Intention Local wisdom -0.103 -0.096 0.071 1.445 0.075 No Significant 472 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate According to the evaluation table of the structural path coefficients above, the attitude variable on behaviour and the perceived behavioural control variable are constructs that significantly affect the dependent variable. The subjective norm variable has no significant effect because its t-statistic value is less than 1.96 or its p-value is more significant than 0.05. Due to the moderating effect of the moderating variable of local wisdom culture, the moderation of the attitude variable on behaviour is insignificant. 8. Hypothesis Test 8.1. Effect of Attitude on Behaviour on Whistleblowing Intention Attitude towards behaviour is hypothesized to influence whistleblowing intention through the following statistical hypothesis: 𝐻0: 𝛾11 = 0 Attitude towards behaviour does not positively affect whistleblowing Intention. H1: γ11 ≠ 0 Attitude towards behaviour positively affects whistleblowing Intention. The test criteria are done by rejecting Ho if the p-value is smaller than the significant level of 0.05. The p-value can be seen in the following table 3. Based on the table above shows that the statistical t- value is 2.064> 1.96 and the p-value is 0.020 <0.05, so the null hypothesis is rejected; it can be stated that there is a positive effect of attitude on behaviour significantly on the whistleblowing intention at a significance level of 0.05 of 0.137. This means that increasing the attitude score on behaviour by one standard deviation will increase the average whistleblowing intention score by 0.137. Table 3. Effect of attitude on behaviour on whistleblowing intention. Original sample (O) Sample mean (M) Standard deviation (STDEV) T statistics (|O/STDEV|) P Values Significance 0.137 0.138 0.066 2.064 0.020 Significant The results of this study prove that increasing attitudes towards behaviour in local governments in West Sumatra province and Riau province can increase the level of whistleblowing intention in these local governments. Behaviour attitude is a person's mental readiness to behave or act, in this case, acting as a whistleblower. Empirically, it can be proven that the better a person's mental readiness to become a whistleblower, the better the level of whistleblowing intention is in the regional governments of West Sumatra province and Riau province. 8.2. Moderating Effect of Local Wisdom Culture on the Relationship between Attitude Toward Behaviour and Whistleblowing Intention The cultural approach of local wisdom is hypothesized to moderate the influence of attitude toward behaviour on whistleblowing intention through the following statistical hypothesis: H0: The local wisdom culture does not moderate the influence of attitude on behaviour on whistleblowing intention. H1: The local wisdom culture moderates the influence of attitude on behaviour on whistleblowing intention. The test criteria are done by rejecting H0 if the p-value is smaller than the significant level of 0.05. The p-value can be seen in the following table 4. The table above shows that the t-statistic value is 1.445 < 1.96 and the p-value is 0.075 > 0.05, so the null hypothesis is accepted; it can be concluded that the cultural approach of local wisdom does not strengthen the level of influence of attitudes on behaviour in influencing whistleblowing intention at a significance level of 0.05 in the regional government of West Sumatra province and Riau province. 473 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate Table 4. Moderating effect of local wisdom culture on the relationship between attitude toward behaviour and whistleblowing intention. Original sample (O) Sample mean (M) Standard deviation (STDEV) T statistics (|O/STDEV|) P values Significance -0.103 -0.096 0.071 1.445 0.075 Not significant Local wisdom culture is based on cultural values based on ‘adat bersendikan yarak’ and ‘yarak bersendikan Hizbullah’, which are applied in social life. Empirically, cultural values applied in social life have not been proven to strengthen the influence of attitudes on behaviour on whistleblowing intention in local governments in West Sumatra province and Riau province. 8.3. Effect of Whistleblowing Intention on Fraud Prevention Whistleblowing Intention is hypothesized to positively influence fraud prevention, with the statistical hypothesis as follows: 𝐻0: 𝛽21 = 0, Whistleblowing Intention has no positive effect on fraud prevention. 𝐻1: 𝛽21 ≠ 0, Whistleblowing Intention positively affects fraud prevention. The test criteria are done by rejecting Ho if the p-value is smaller than the significant level of 0.05. The p-value can be seen in the following table 5. Based on the table above, it can be concluded that notification intention positively and significantly affects fraud prevention at a significance level of 0.05- 0.160. This means the statistical t value of 3.683 is more significant than 1.96, and the p value of 0.000 is lower than 0.05. This means that every increase in notification intention value by one standard deviation will increase the average fraud prevention level score by 0. This means that each increase in the notification intention value by one standard deviation will increase the average fraud prevention level score by 0. Table 5. Effect of whistleblowing intention on fraud prevention. Original Sample (O) Sample mean (M) Standard deviation (STDEV) T statistics (|O/STDEV|) P values Significance 0.160 0.168 0.043 3.683 0.000 Significant The results of this study prove that any increase in whistleblowing Intention in each local government in the provinces of West Sumatra and Riau can increase the level of fraud prevention in the local government. 9. Discussion of Findings 9.1. The Positive Effect of Attitude on Behaviour on Whistleblowing Intention The test results show that attitude towards behaviour has a significant positive effect on whistleblowing intention. Behaviour attitude is the whistleblower's mental readiness to report and face the effects of reporting actions taken. Based on the descriptive analysis of the attitude variable on behaviour, a score of 84% was obtained, which is in the very high criteria, indicating that empirically, the reporter has a perfect mental readiness to take action to report all forms of fraud that occur. The dimensions influence the very high attitude of whistleblowers to report fraud that occurs based on two dimensions i.e. i) beliefs that underlie attitudes; and ii) evaluation results of attitudes. The beliefs that underlie attitudes are the whistleblower's beliefs related to the expected results of whistleblowing actions. The evaluation result of attitude is the whistleblower's assessment of the usefulness and importance of whistleblowing. 474 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate Based on descriptive analysis, a very high value of 84% is obtained from the dimension of beliefs that underlie attitudes. This proves that the whistleblower's very firm belief in the whistleblowing actions that the whistleblower takes can provide good results and benefits for government agencies. Based on the description above, Attitude towards behaviour has a significant positive effect on whistleblowing Intention. This shows that the act of reporting fraud committed by the whistleblower is well influenced by the whistleblower's mental readiness to report and face the effects of whistleblowing actions; these actions are driven by the whistleblower's belief in the expected results and his assessment of the impact of whistleblowing actions. The study's results prove that attitudes towards behaviour significantly affect whistleblowing Intention, supporting and confirming research conducted previously by Park and Blenkinsompp (2009) that positive attitudes have a significant effect on internal whistleblowing Intention. Research by Zakaria, Azmawaty and Yusoff (2016) shows that Attitude significantly affects internal and external whistleblowing Intention. Zakaria, Azmawaty and Basirah's (2016) Research on Attitude toward behaviour positively affects whistleblowing intention. Tripermata, Syamsurijal, Wahyudi and Fuadah (2021) found that Attitude positively and significantly affects whistleblowing intention. 9.2. The Influence of Attitude on Behaviour on Whistleblowing Intention with the Cultural Approach of Local Wisdom as a Moderating Variable The test results prove that the local wisdom culture approach does not significantly moderate the effect of Attitude on behaviour on whistleblowing Intention. Local wisdom culture is based on cultural values applied in social life, such as ‘Adat Bersendikan Yarak’ and ‘Yarak Bersendikan Hizbullah’. Based on descriptive analysis, the score for the moderating variable of local wisdom culture is 91%, in very high or perfect criteria; this proves that it is perfect that local cultural values are applied in the social life of the community by the whistleblower, and have a significant impact on the whistleblower's attitude to take other actions, but have not strengthened the whistleblower's Attitude to act to report fraud violations (whistleblowing). The Minangkabau and Malay local wisdom culture does not strengthen the Attitude to report fraud; this is an indication because the values in the local wisdom culture that seem to overlap with the concepts and teachings in ‘amar ma'ruf nahi munkar’, as well as the dominance of values that prioritize the culture of shyness and shame, one of which is shyness and shame to reveal the disgrace of others, fraud and violations committed are often seen as a disgrace. Hence, they are reluctant to reveal it. In a Malay expression, it is stated, "If the disgrace is revealed, it is a sign that he is uncivilized, who reveals the disgrace of others, a sign of shame has been lost, who reveals the shame of others, there is no shame, even less sense," in the Minangkabau traditional advice stated, "Mancabiak baju dado, manual aia diluting." The Malay expression and Minang advice above give rise to a heavy heart for Malay and Minang people to report fraud or actions that are considered a disgrace to be disclosed. Talking about and reporting fraud, especially externally or out of their environment, will embarrass themselves and their community. Another advice is known as "Senteang bill mambilai, panjang karek mangarek" that require one should help a friend who is in trouble and advise if he has already done it. Based on the above advice, the tendency is to convey something wrong that has been done by giving advice, if it does not change, or reporting internally by trying to convey to the person who is influential in him or top management in the hope of giving a reprimand and advice or other things so that it can stop from violating. The results of this study support research conducted by Wozir and Yurtkoru (2017) found that clan culture (tribe, clan) negatively contributes to external whistleblowing. 9.3. The Effect of Whistleblowing Intention on Fraud Prevention The test results show that whistleblowing intention is positive and significant in preventing fraud. Whistleblowing intention is the whistleblower's desire to report fraud violations in an organization or institution. Based on descriptive analysis, this variable received a score of 49%, which is a pretty good 475 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate score, indicating that the whistleblower's desire to report fraud is relatively high. Indicating that the whistleblower's intention to report fraud (whistleblowing) is primarily influenced by mental readiness as a whistleblower, support and encouragement from those closest to him, self-confidence, and the ability to face all the risks associated with local government in the West Sumatra and Riau regions. These excellent fraud prevention measures are the result of proactive measures taken by government agencies through: 1. Creating a culture of honesty and ethics through the implementation of a code of ethics or an organizational ethical behaviour policy, building a positive work environment and good communication between employees, top management setting a reasonable and appropriate example and acting consistently in responding to every case of fraud, appreciating employees who perform well and conducting training to increase awareness of the risks of fraud that occurs. 2. Evaluate anti-fraud processes and controls by identifying and assessing fraud risks, implementing organizational internal controls, and changing activities and processes within the agency to avoid or eliminate fraud risks. 3. Develop supervisory processes by increasing attention to fraud risks, encouraging employees in good faith to report cases or suspicions of fraud that occur, and checking and verifying every transaction in the agency. Based on the description above, it shows that the greater the reporter's willingness to report fraud that occurs, the more it will have a positive impact on agencies' efforts to avoid and stop fraud in local governments in the provinces of West Sumatra and Riau. The results of this study confirm the findings of Rustinarni and Sunarsih (2017), which reveal that whistleblowing Intention is the realization of a desire to achieve goals and benefits that can minimize the occurrence of fraud in the future. Furthermore, research conducted by Tripermata, Syamsurijal, Wahyudi and Fuadah (2021) shows that whistleblowing Intention positively affects fraud prevention. 10. Conclusion Attitude towards behaviour has a positive effect on whistleblowing intention. Behaviour attitudes are very well reflected by two factors i.e. (i) the beliefs underlying the attitude; and (ii) the evaluation results of the attitude. The better the mental readiness of employees to become whistleblowers, can increase the number of employees who wish to report fraud. This indicates the importance of mentally directing, motivating and instilling a sense of moral responsibility in employees to want to report fraud, as well as instilling the belief that whistleblower behaviour can provide inner peace, increase public trust, maintain a good name and avoid agencies from the dangers posed by fraud. However, the findings of this study found that the cultural approach of local wisdom does not moderate the effect of attitude on behaviour on whistleblowing intention. The cultural values of ‘Adat Bersendikan Yarak’ and ‘Yarak Bersendikan Kitabullah’ applied in social life have a good impact on employee attitudes to behave that are not for reporting fraud. This indicates the dominance of cultural values of shame and embarrassment so that it is difficult to disclose actions that are considered a disgrace; the actions taken are more like advice to the perpetrator, and if it does not change, convey it to people who are influential in him, or top management by giving a warning or other things so that they can stop from violating. As empirically proven, the whistleblowing intention has a positive effect on fraud prevention. The greater the whistleblower's willingness to report fraud that occurs, the better the agency's ability to avoid and stop fraud. This indicates the importance of creating an honest and ethical culture, evaluating and controlling anti-fraud, developing supervisory processes, increasing attention to fraud risks and encouraging employees' goodwill to report fraud. Overall, the study contributes to the existing literature by providing empirical evidence in cultural approach of local wisdom on the relationship between attitude behavior and whistleblowing intention. Findings would inform policymakers and regulatory bodies about the effectiveness of current whistleblowing intention regulations and practices to fraud prevention by implementing the internal 476 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 5: 465-477, 2024 DOI: 10.55214/25768484.v8i5.1710 © 2024 by the authors; licensee Learning Gate control role. As a good public official, a leader should continue to show good exemplary attitudes as part of local wisdom. The study is limited to attitude towards behaviour, cultural approach of local wisdom, whistleblowing intention and whistleblowing intention, from local governments in West Sumatra and Riau regions and scope the period of 2017 to 2021. 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