INTERNAL GOVERNMENT AUDIT SUPERVISION MODEL FOR FRAUD CONTROL IN PUBLIC PROCUREMENT: EVIDENCE FROM KEDIRI CITY GOVERNMENT
Public procurement is one of the sectors with a high risk of fraud due to the complexity of procedures, the involvement of multiple stakeholders, and the large amount of public funds managed. Therefore, the role of Government Internal Supervisory Apparatus (APIP) is essential in strengthening internal control systems and preventing irregularities in procurement processes. This study aims to analyse the role of APIP in fraud control in public procurement within the Kediri City Government. The study employs a qualitative approach using in-depth interviews, observations, and document analysis related to internal supervision activities. The findings reveal that APIP plays a significant role in fraud control through preventive, detective, and corrective supervisory functions. The effectiveness of APIP supervision is influenced not only by formal audit mechanisms but also by the quality of internal control systems, the competence of internal auditors, and the use of technology in the auditing process. This study also develops a conceptual model of APIP supervisory processes in controlling procurement fraud, highlighting the importance of systematic supervision from risk-based planning to monitoring the implementation of audit recommendations. The findings provide practical implications for local governments to strengthen APIP capacity through auditor competency development, strengthening internal control systems, and integrating audit technologies to enhance supervisory effectiveness and support the implementation of good governance.