Accounting’s Role for Preventing Fraud in the Implementation of Village Financial Management

The increasing allocation of village funds has positioned villages as key actors in local development while simultaneously intensifying the risk of fraud in village financial management. Empirical evidence shows that existing systems and procedures have not fully incorporated fraud risk considerations, particularly at the implementation stage, which is highly vulnerable to misuse. This study aims to examine the role of accounting in preventing fraud in the implementation of village financial management by identifying accounting practices that support transparency, accountability, and effective control. The research employs a qualitative approach with an ethnomethodological method to capture the actual practices, routines, and decision-making processes of village financial management. Data were collected through in-depth interviews with village officials and supervisory authorities, direct observation of financial management systems, and documentation review, and were analyzed using descriptive qualitative techniques. The findings indicate that accounting plays a significant role in minimizing fraud through systematic recording and reporting, strengthening internal control mechanisms, implementing checks and balances via segregation of duties, fostering an ethical organizational culture, and ensuring compliance with applicable regulations. Proper accounting implementation also helps address regulatory changes, transaction complexity, and operational anomalies that are not explicitly regulated