Transformation of Public Sector Behavioral Accounting: The Critical Role of HR in Preventing Financial Fraud Through Digitalization in Indonesia

Abstract

This research explores changes in behavioral accounting in the public sector, focusing on the role of human resources in preventing financial fraud through digitalization. Information technology is expected to increase transparency and accountability, as well as reduce fraud. Analysis of challenges and training of human resources are key to improving the integrity and efficiency of public financial management in Indonesia. Explores the critical role of human resources in the transformation of behavioral accounting in the Indonesian public sector and analyzes how digitalization can contribute to financial fraud prevention. To improve the integrity and transparency of public financial management in Indonesia through the role of HR and digitalization to prevent financial fraud.

The research approach is a mixed method, namely quantitative and qualitative methods with an interpretivist paradigm. The participants in this study were leadership elements in regencies and cities in East Java (N = 38). The transformation of behavioral accounting in the public sector in Indonesia is significantly influenced by the active role of human resources (HR) in adopting digital technology. Research has identified that HR training and competency development are key factors in preventing financial fraud, as they can improve oversight capabilities and enable more transparent financial reporting. Furthermore, digitalization has proven effective in strengthening the accountability and efficiency of public financial management. These findings also underscore the importance of organizational support and policies that support digital transformation to achieve optimal results in preventing financial fraud. The practical implications of this research indicate that government agencies need to integrate human resource (HR) training and development into their digitalization strategies to enhance their oversight and financial fraud risk mitigation capabilities.

This research contribution develops a framework that links behavioral accounting transformation, the role of HR, and digitalization to prevent financial fraud and increase public financial transparency.