Abstract: Globalization era requires companies to survive more and requires companies to think more critically in resources use and allocation which means a way to face competition, this study investigates performance audits efficiency to create a culture good corporate governance which ultimately requires every individual in an organization to be more concerned prevent fraud. A literature review on performance auditing in support of good corporate governance using case studies and focus group interviews. Case studies on performance audits have a big impact as a measure good corporate governance to reduce fraud cases that are rife in Badan Usaha Milik Negara (BUMN). Good corporate governance has a TARIF principle (Transparency, Accountability, Responsibility, Independency, Fairness) which is supported by internal examinations in economy aspects, efficiency, and effectiveness which in the process has a good impact on culture, responsibility and supervision. Qualitative exploration fraud prevention from a performance audit perspective on good corporate governance implementation with a review relevant literature to identify variables, to clarify basic concepts, and to produce conceptual models fraud prevention in BUMN companies. The implemented performance audit provides management to continue to evaluate good corporate governance culture so as to minimize cases fraud on BUMN companies.

Key words: performance audit; good corporate governance; prevent fraud

JEL codes: G34, M42