Can the Fraud Triangle Detect Financial Statement Fraud? (An Empirical Study of Manufacturing Companies in Indonesia)

2021 ◽  
Vol 15 (3) ◽  
pp. 28-38
Author(s):  
Irine Herdjiono ◽  
Berkah Nadila Kabalmay
Keyword(s):  
Logistic Regression ◽  
Empirical Study ◽  
Stock Exchange ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Financial Need

This study examines the effect of the following factors on financial statement fraud: (1) external pressure, (2) personal financial need, (3) financial targets, (4) the nature of industry, (5) ineffective monitoring, and (6) rationalization. The population in this study consisted of companies listed on the Indonesia Stock Exchange (IDX) over the period 2016-2018. The analysis was conducted with the help of the logistic regression method.The results of this study indicate that external pressure, financial targets and the nature of industry have an effect on financial statement fraud, while personal financial need, ineffective monitoring and rationalization have no effect on financial statement fraud. Thus, this study contributes to the understanding that not all aspects of the fraud triangle can detect fraud.

scholarly journals FINANCIAL STATEMENT FRAUD DETECTION USING PERSPECTIVE OF FRAUD TRIANGLE ADOPTED BY SAS NO. 99

2016 ◽  
Vol 1 (2) ◽  
pp. 317 ◽  
Author(s):  
Shabrina Prasmaulida
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Cash Flows ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Financial Need

Financial statements generally aim to provide information about the company’s financial position, performance, and cash flows to the interested parties. The motivation to gain trust from the users, especially investors, shareholders and creditors, leads someone to commit fraud in the financial reporting. This study aims to detect and predict financial statement fraud based on the perspective of fraud triangle adopted by SAS No. 99. The dependent variable in this study is financial statement fraud which is proxied by earnings management, while the independent variables in this study are financial stability pressure, personal financial need, ineffective monitoring, effective monitoring, external pressure, and financial targets.Population of this research is manufacturing companies listed in Indonesia Stock Exchange period 2012 - 2014. Samples are selected using purposive sampling method and obtained 150 companies out of a total population of 162 companies. The results show that financial stability pressure and external pressurehave significant positive effect on financial statement fraud. Meanwhile, personal financial need, ineffective monitoring, effective monitoring, and financial targets do not have significant effect on financial statement fraud.

scholarly journals DETERMINAN FINANCIAL STATEMENT FRAUD DENGAN MENGGUNAKAN PENDEKATAN FRAUD TRIANGLE

AKUNTABILITAS ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 1-18
Author(s):  
Yeasy Darmayanti ◽  
Ilham Setiawan ◽  
Ethika Ethika
Keyword(s):  
Regression Analysis ◽  
Financial Stability ◽  
Stock Exchange ◽  
External Pressure ◽  
The Other ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Financial Need

The aim of this study is to examine the effects of financial stability, external pressure, personal financial needs, financial targets, nature of industry, ineffective monitoring, and rationalization of financial statement fraud on manufacturing companies listed on the Indonesia Stock Exchange from 2012 to 2016 .From a population of 159 listed manufacturing companies, 72 samples were obtained that met the criteria. Testing using SPSS version 23 for logistic regression analysis. The results of this study indicate that external pressure and nature of industry have a significant influence on financial statement fraud. On the other hand, financial stability, personal financial need, financial targets, ineffective monitoring and rationalization have no effect on financial statement fraud.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI KECURANGAN LAPORAN KEUANGAN DENGAN ANALISIS FRAUD TRIANGLE

2017 ◽  
Vol 6 (1) ◽  
Author(s):  
Nurul Hafizah ◽  
Novita Weningtyas Respati ◽  
Chairina Chairina
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Total Sample ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Independent Variables ◽  
Financial Need

This research aims to examine, analyze, and obtain evidence the influences factors in fraudtriangle to financial statement fraud on Manufacturing Companies that Listed on IndonesiaStock Exchange. This research’s population are Manufacturing Companies that Listed on Indonesia Stock Exchange Period 2011-2015. In this research using purposive sampling method todetermine the samples. Total sample of this research are 57 companies. This research useslogistic regression analysis to examine the effects of various independent variables on financialstatement fraud. The independent variables in this research are factors in fraud triangle. Theresult of this research indicated that financial stability influences the financial statementfraud. However, other variabel like external pressure, personal financial need, financial targets,nature of the industry, effective monitoring, and rationalization were not influence on financialstatement fraud.Keywords: Financial statement fraud, fraud triangle, pressure, opportunity, rationalization

THE EFFECT OF FINANCIAL STABILITY, EXTERNAL PRESSURE, PERSONAL FINANCIAL NEED, FINANCIAL TARGETS, INEFFECTIVE MONITORING AND AUDIT QUALITY ON DETECTING FRAUD FINANCIAL STATEMENT IN PERSPECTIVE OF FRAUD TRIANGLE

2018 ◽  
Vol 23 (2) ◽  
pp. 191-199
Author(s):  
Sidik Nur Fajri
Keyword(s):  
Financial Stability ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Total Sample ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Financial Need

The purpose of this study was to determine whether financial stability, external pressure, personal financial need, financial targets, ineffective monitoring, and audit quality affect the financial statement fraud by collecting empirical evidence. The object of research is the companies from sector property and real estate which listing on the Indonesia Stock Exchange, with research period in 2010-2012. The samples in this study were selected based on purposive sampling method with a total sample of 14 companies. The analysis technique used in this research is multiple regression analysis using SPSS. These results indicate that the variable external pressure, personal financial need and audit quality effect on the financial statements fraud, meanwhile variables financial stability, financial targets, ineffective monitoring had no effect on the financial statements fraud. Variables financial stability, external pressure, personal financial need, financial targets, ineffective monitoring and audit quality simultaneously effect on the financial statements fraud. Keywords: Financial Statement Fraud, Fraud Triangle

Pendeteksian Financial Statement Fraud melalui Komponen Fraud Triangle

2021 ◽  
Vol 5 (2) ◽  
pp. 125
Author(s):  
Nurul Aini ◽  
Eman Sukanto
Keyword(s):  
Logistic Regression ◽  
Financial Stability ◽  
Stock Exchange ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Auditor Change

<p><em>The aim of this study is deemed to analyze the influence of fraud triangle as a tool to detect the fraud in a financial statement. The research focuses on the trading sector companies from 201</em><em>4</em><em> to 2016 that are listed on the Indonesia Stock Exchange. After selecting these companies, 24 of them become the definite samples. They are divided into companies that are probable doing financial </em><em>statement </em><em>fraud and those which are not based on the model of Beneish M-Score. For that, this research uses logistic regression. The results show that those that have significant effect on financial statement fraud are external pressure, ineffective monitoring, and financial stability. And those insignificant variables include auditor change, financial target, and the nature of industry. </em></p>

FRAUD LAPORAN KEUANGAN DALAM PERSPEKTIF FRAUD TRIANGLE

2018 ◽  
Vol 14 (1) ◽  
pp. 53
Author(s):  
Rowland Bismark Fernando Pasaribu ◽  
Angrit Kharisma
Keyword(s):  
Earnings Management ◽  
Financial Stability ◽  
Stock Exchange ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Statistical Data Analysis ◽  
Financial Statement Fraud ◽  
Monitoring Change

This research aims to obtain empirical evidence of the effectiveness of the fraud triangle in detecting fraudulent financial statement. The variables of the fraud triangle are used a proxy external pressure with LEV, financial stability pressure by ACHANGE, nature of industry by RECEIVABLE effective monitoring by BDOUT proxy and change in auditor by CPA. Detecting of fraudulent financial statement in this research uses a proxy earnings management. The population of this research is the manufacturing companies listed on Indonesia Stock Exchange in 2008 - 2016. Statistical data analysis method used is linear regression. The result of this research indicate that the nature of indutry influence the financial statement fraud. Meanwhile, the external pressure, financila stability, ineffective monitoring and change in auditor  has no significant impact on financial statement fraud.Keywords:  Financial statement fraud, external pressure, nature of industry, financial stability, ineffective monitoring, change in auditor, earnings management. ABSTRAKPenelitian ini bertujuan untuk memperoleh bukti empiris mengenai efektivitas dari fraud triangle dalam mendeteksi kecurangan laporan keuangan. Variabel-variabel dari fraud triangle adalah external pressure yang diproksikan dengan LEV, financial stability yang diproksikan dengan ACHANGE, nature of industry yang diproksikan dengan RECEIVABLE, ineffective monitoring yang diproksikan dengan BDOUT dan chabnge in auditor yang diproksikan dengan CPA. Pendeteksian kecurangan laporan keuangan dalam penelitian ini menggunakan manajemen laba. Populasi dari penelitian ini adalah perusahaan manufaktur yang terdaftar pada Bursa Efek Indonesia tahun 2008-2016. Metode analisis data statistik yang digunakan adalah regresi berganda. Hasil penelitian ini menunjukkan bahwa hanya nature of industry yang berpengaruh signifikan terhadap kecurangan laporan keuangan. Sementara itu, external pressure, financial stabiliy, ineffective monitoring dan change in auditor tidak berpengaruh signifikan terhadap kecurangan laporan keuangan.Kata Kunci:  Kecurangan laporan keuangan, tekanan eksternal, sifat industri, stabilitas keuangan, pemantauan tidak efektif, perubahan auditor, manajemen laba.

scholarly journals THE EFFECT OF FRAUD TRIANGLE IN DETECTING FINANCIAL STATEMENT FRAUD

2020 ◽  
Vol 10 (3) ◽  
pp. 231-244
Author(s):  
Zakharia Sabatian ◽  
Francis M. Hutabarat
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Financial Report ◽  
Financial Need

Financial statements are a form of a report presented by a company that shows the financial performance of the company. In many cases of financial report fraud committed by Public Accounting Firm, they beautify the financial statements so that many investors are interested in the company. Therefore, this study aims to examine the influence of the Fraud Triangle factor in detecting fraudulent financial statements. The object of this study uses the financial statements of the Cigarettes and Cosmetics subsectors that are listed on the Indonesia Stock Exchange in the period 2016-2018. This study uses thirty sample data using purposive methods based on criteria. Data analysis using logistic linear regression analysis. The results showed that Rationalization had a significant effect on financial statement fraud. Meanwhile, Financial Stability, External Pressure, Personal Financial Need, Financial Targets, Ineffective Monitoring, Nature of Industry have no significant effect on financial statement fraud.Keywords: Fraud, Pressure, Opportunity, Rationalization, Financial Statement Fraud

scholarly journals Deteksi Financial Statement Fraud Berdasarkan Perspektif Pressure dalam Fraud Triangle

Owner ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 350-360
Author(s):  
Muhammad Yunus ◽  
Ompon Lastiur Sianipar ◽  
Kharisma Yudha Saragih ◽  
Amelia Amelia
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Manufacturing Companies ◽  
Analysis Method ◽  
Financial Statement Fraud ◽  
Negative Effect

This study aims to determine the effect of the fraud triangle perspective illustrated by financial stability, external pressure, and financial targets on financial statement fraud on manufacturing companies listed on the Indonesia Stock Exchange in 2015-2018. This research is a type of causal associative research with a quantitative approach. The sample in this study were 49 Manufacturing Companies listed on the Indonesia Stock Exchange in 2015-2018. The type of data used in this study is secondary data. Data analysis method used in this study is Logistic Regression Analysis with the help of SPSS 25 software. The results obtained in this study indicate that external pressure has a positive and significant effect on financial statement fraud. Financial targets have a significant negative effect on financial statement fraud. While financial stability does not significantly influence financial statement fraud.

scholarly journals ANALISIS FRAUD TRIANGLE UNTUK MENDETEKSI FINANCIAL STATEMENT FRAUD

2020 ◽  
Vol 2 (1) ◽  
pp. 72-94
Author(s):  
AKMALIA KHOIR ◽  
Eny Kusumawati
Keyword(s):  
Financial Stability ◽  
Sampling Method ◽  
Stock Exchange ◽  
Analytical Techniques ◽  
External Pressure ◽  
T Test ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Financial Need

This study is aimed to analyze the effect of fraud triangle to financial statement fraud on the manufacture companies listed on the Indonesian Stock Exchange in the period 2014-2018. Fraud Triangle on this study are pressure that proxied by financial target, financial stability, external pressure and personal financial need. Opportunity that proxied by ineffective monitoring and nature of industry. Rationalization that proxied by change of auditor. The sampling method in this study is purposive sampling. Total number of sample in this study are 112 samples. Financial statement fraud is obtained by Fscore. The analytical techniques conducted by descriptif statistic dan classical assumption test and also hypothesis was tested using multiple linier regresional method, Adjusted R2 test, F test and t test. The result showed that financial target, external pressure, personal financial and nature of industry significantly affect the financial statement fraud. Meanwhile, financial stability, ineffective monitoring and rationalization have not affected financial statement fraud

scholarly journals FRAUD PENTAGON THEORY DALAM FINANCIAL STATEMENT FRAUD PADA PERUSAHAAN TERDAFTAR di JAKARTA ISLAMIC INDEX (JII) PERIODE 2014-2017 (Perspektif F-Score Model)

2019 ◽  
Vol 4 (2) ◽  
pp. 128-138
Author(s):  
Faiz Rahman Siddiq ◽  
Agus Endrianto Suseno
Keyword(s):  
Financial Stability ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Purposive Sampling ◽  
Auditing Standards ◽  
Score Model ◽  
Financial Need

Financial statement fraud biasa disebut dengan kecurangan laporan keuangan yang merupakan kesengajaan dalam melakukan kelalaian dan kesalahan ketika  membuat laporan keuangan dengan penyajian yang tidak sesuai pada prinsip akuntansi berterima umum. Statement on Auditing Standards (SAS) No.99 menjelaskan tentang salah saji yang berhubungan dengan auditor dalam mengaudit laporan keuangan terhadap fraud diantaranya adalah (1) salah saji dari kesalahan suatu laporan keuangan merupakan suatu  pengungkapan yang direncanakan guna menipu pengguna laporan keuangan, (2) penyalahgunaan aset atau istilah lain pencurian dan penggelapan sering dijadikan sebagai salah saji dalam laporan keuangan. Fraud pentagon theory merupakan pengembangan dari teori fraud sebelumnya yaitu fraud triangle (Cressey, 1953) dan fraud diamond (Wolf and Hermanson,2004). Populasi penelitian ini adalah perusahaan yang tergabung dalam Indeks JII (Jakarta Islamic Index) pada tahun 2014-2017. Teknik pengambilan sampel dengan menggunakan metode purposive sampling. Metode analisis data yang digunakan dalam penelitian ini adalah analisis regresi linear berganda. Financial statement fraud dalam penelitian menggunakan perspektif F-Score Model. Hasil penelitian ini adalah pressure (Financial Stability, dan Financial Target), dan Opportunity (Nature of Industry) berpengaruh terhadap financial statement fraud. Sedangkan Pressure (External Pressure dan Personal Financial  Need), Rationalization (Change in Auditor), Competence (Change of Director) dan Arrogance (Frequent Number of CEO’s Picture dan Dualism Position) tidak berpengaruh terhadap financial statemnt fraud.

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