The Effect of Cultural Ewuh Pakewuh Bureaucracy Toward Significance Accounting Fraudulency in the Government : The Perception of Government Internal Control Apparatus Sragen Area Inspectorate

Based on our understanding, an organization includes culture and structure. Nowadays, this improvement is merely focused on the organizational structure rather than culture in which embedded in the organization. In fact, culture can affect the structure of the organization. Culture which is examined in this study is ewuh-pakewuh bureaucratic culture and its effect toward accounting fraudulency. This research is focused on to see the possibility of a correlation between the effects of ewuh pekewuh bureaucratic culture toward the tendency of accounting fraudulency. "Ewuh-pakewuh" is one of inherent culture of Java community, where the culture is instilled as a sense of shy, awkwardness, and respectful toward others. Ewuh-pakewuh can occur because of the position, seniority, charisma, as well as good relationships that create shyness feeling and reticent attitude towards someone else.This study was aimed to determine the effect of "ewuh pekewuh" bureaucratic culture toward the existing of accounting fraudulency in the government agencies, particularly at the Internal Control Apparatus of Government Inspectorate. APIP is one of the civil servant departments which carry out duty to supervise all of the government implementers located at APIP structurally and systematically. The position of APIP Inspectorate in preventing and finding accounting fraudulency is strategic, otherwise in the mean time of execution, appears the sense of hesitate to reveal or discover the accounting fraudulency that occurs if the personal audit has a higher position than them.This research methodology was done by doing a direct observation at Sragen Inspectorate area which was conducted during 7 (seven) years start from 2007 until 2014, and supported by interviews with The Government Internal Control Apparatus auditors (APIP) in the Inspectorate. And the results showed that "ewuh pekewuh" bureaucratic culture has a significant effect toward the tendency of accounting fraudulency in the government