scholarly journals Detection of fraudulent financial reporting trough the Crowe’s Fraud Pentagon Theory in primary consumer goods indexed

2021 ◽  
Vol 17 (2) ◽  
pp. 125-138
Author(s):  
Maulida Dwi Kartikasari ◽  
Sumarno Sumarno ◽  
Rizki Nur Fitriani
Keyword(s):  
Financial Reporting ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Fraudulent Financial Reporting ◽  
Positive Effects ◽  
Primary Consumer ◽  
Food And Beverage ◽  
Fraudulent Financial Statements

The purpose of this study was to determine the fraud pentagon in detecting fraudulent financial statements. The data was collected by using the documentation method, while the data analysis used was descriptive analysis, classical assumption test, and hypothesis testing. The population in this study were companies IDX Industrial Classification  Food and Beverage Sub-Sector listed on the Indonesia Stock Exchange (BEI) 2016-2019. The sample in this study was 11 companies selected by the purposive sampling method.  Based on the multiple linear regression analysis, the results show that opportunity, rationalization, and arrogance have a significant positive effects on fraud detection in Primary Consumer Goods Indexed. This means that rationalization, opportunity, and arrogance can detect fraudulent financial statements. However, the pressure and competence variables have a significance value below 5%. This means that the two variables do not have a significant effect on the detection of fraudulent financial reporting in companies indexed by primary consumer goods in the food and beverage sub-sector.

scholarly journals The Effect of CFO Demographics on Fraudulent Financial Reporting

2020 ◽  
Vol 24 (1) ◽  
pp. 21
Author(s):  
Yulia Frischanita, Yustrida Bernawati
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Control Variable ◽  
Financial Statements ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Financial Statement Fraud ◽  
Negative Effect ◽  
Fraudulent Financial Statements

This study aims to examine the effect of CFO demographics on financial statement fraud. The results contribute to companies for increasing CEO and CFO elections and corporate governance designed to prevent illegal actions. The sample in this study was manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018 with 308 data and hypothesis testing using multiple regression analysis techniques. The test results show that the age of the CFO affects the fraudulent financial statements. More mature the CFO engage with fraudulent financial statements. Other results indicate that the level of education, gender and experience of the CFO have no effect on financial statement fraud. The control variable used is ROA which has a positive effect on financial statement fraud. While company size and leverage have a negative effect on financial statement fraud.

scholarly journals Pengaruh Fraud Hexagon Model Terhadap Fraudulent Laporan Keuangan pada Perusahaan Sub Sektor Makanan dan Minuman yang Terdaftar di BEI Tahun 2016-2019

2021 ◽  
Vol 13 (2) ◽  
pp. 245-259
Author(s):  
Samuel Gevanry Sagala ◽  
Valentine Siagian
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Annual Reports ◽  
Political Connections ◽  
Manufacturing Companies ◽  
Food And Beverage ◽  
Fraudulent Financial Statements

Abstract This study aims to determine the effect of the fraud hexagon model, namely pressure (stimulus) which is proxied by financial targets and financial stability, capabilities that are proxied by changes in directors, opportunities proxied by ineffective monitoring, rationalization proxied by change in auditors, arrogance proxied by frequent number of CEO's picture, and collusion proxied by government projects, political connections and state-owned enterprises to fraudulent financial statements. The sample of this study is the food and beverage sub sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2019. This study uses secondary data, namely financial reports and annual reports. Based on the purposive sampling method, the number of companies sampled in this study was 18 companies from a total of 32 companies registered and analyzed by multiple linear regression analysis using the SPSS 25 program. The results of this study found that the elements of pressure that are proxied by financial targets and financial stability had a significant effect on fraudulent financial statements. Meanwhile, change of directors, ineffective monitoring, change in auditors, frequent number of CEO's pictures, government projects, political connections and state-owned enterprises have no significant effect on fraudulent financial statements in food and beverage sub sector manufacturing companies listed on the IDX in 2016- 2019. Keywords: Fraudulent Financial Statement, and Fraud Hexagon Model

scholarly journals ANALISIS PENGARUH FRAUD PENTAGON THEORY TERHADAP FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2014 – 2019

2021 ◽  
Vol 17 (1) ◽  
pp. 22-47
Author(s):  
Whisnu Widyatama ◽  
Loh Wenny Setiawati
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Independent Directors ◽  
Fraudulent Financial Reporting ◽  
Ceo Duality ◽  
Economic Decisions ◽  
The World ◽  
Fraudulent Financial Statements

Fraudulent financial statements or fraudulent financial reporting are actions that cause a person or group of people to obtain certain benefits at the expense of other parties. Fraudulent financial statements themselves are the biggest cause of loss in the world.  Therefore, financial statements that are not presented reliably and are not honestly disclosed can mislead users in making economic decisions. This study aims to analyze the effect of pentagon theory fraud proxied by five variables, that are CEO duality, change of board of directors, number of independent commissioners, level of leverage, and change of auditors to fraudulent financial reporting proxied by Beneish M-Score in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2019 period. This study uses 205 observational data using logistic regression analysis. The results of this research indicate that CEO duality and the change of board of directors have a significant effect on fraudulent financial reporting, while the number of independent directors, the level of leverage, and the change of auditors do not affect fraudulent financial reporting.

scholarly journals Fraud Diamond Model for Fraudulent Financial Statement Detection

2019 ◽  
Vol 8 (3) ◽  
pp. 6865-6872
Keyword(s):  
Logistic Regression ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Fraudulent Financial Reporting ◽  
Return On Assets ◽  
Board Of Director ◽  
Fraudulent Financial Statements

Many cases of fraud that occur and are revealed. something happened in the realm of employee fraud and fraud management. One of the frauds that causes substantial losses is fraudulent financial reporting. Fraudulent financial statement becomes one of the fraud schemes that growth simultaneously within the current years. Many of this fraud scheme cause large sum amount of loss to investor, creditors and other financial statement user. The purpose of this research is to gain empirical evidence about financial statements fraud detection using fraud diamond elements. This research is conducted on listed banking companies in Indonesia Stock Exchange year 2014-2018. There is a total of 190 samples companies used in this research which further analyzed by using Logistic Regression Analysis. Statistical test is conducted to test the hypothesis. The test included: determination of coefficient, logistic regression and partial hypothesis testing. Fraudulent financial statement is proxies by Beneish M-score. The research concluded that Pressure proxies by Changes in Total Assets affects significantly to fraudulent financial statements detection. Meanwhile, Pressure proxies by Return on Assets, Opportunity proxies by Ratio of Independent Board of Commissioners, Rationalization proxies by Changes of External Auditor and Capability proxies by Changes in Board of Director do not affect significantly towards fraudulent financial statements detection. Determination of coefficient test result indicates that 20% of fraudulent financial reporting was able to be explained by pressure, opportunity, rationalization and capabilities.

scholarly journals FRAUDULENT FINANCIAL REPORTING: A PENTAGON FRAUD ANALYSIS

2019 ◽  
Vol 16 (2) ◽  
pp. 122-134
Author(s):  
Satria tri Nanda ◽  
Neneng Salmiah ◽  
Dina Mulyana
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Financial Reports ◽  
Fraudulent Financial Statements

Financial statements describe the company's financial condition. There are many gaps in the financial reports that enable management to commit fraudulent financial reporting. This study purpose to analyze the pentagon fraud, namely the pressure that is proxied by the financial target, the opportunity that is proxied by the effectiveness of monitoring (ineffective monitoring); Rationalization which is proxied by change in auditor; Competence which is proxied by the change of company directors; and Arrogance which is proxied by the number of CEO images that appear (number of CEO's picture), detects fraudulent financial statements measured using the Altman Z Score. The sample used in this study were 24 pharmaceutical sub-sector manufacturing companies registered on the Indonesia Stock Exchange during the period 2015 until 2017. The type of data used is secondary data obtained from annual reports and company financial statements for the 2015-2017 period. The analysis of the data used is multiple regression using the SPSS version 16. This study found that financial stability and ineffective monitoring influence fraudulent financial statements. Whereas auditor turnover, change of directors and the number of CEO photos that appear do not affect fraudulent financial statements.

scholarly journals DETECTION ANALYSIS ON FRAUDULENT FINANCIAL REPORTING USING FRAUD SCORE MODEL

2019 ◽  
Vol 4 (2) ◽  
pp. 161
Author(s):  
Puput Ade Irawan ◽  
Dewi Susilowati ◽  
Novita Puspasari
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Financial Statements ◽  
External Pressure ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Analysis Model ◽  
Detection Analysis ◽  
Fraudulent Financial Statements

This study aims to examine the elements of fraud in the fraud diamond theory. Fraud is proxied by seven variables consisting of three pressure elements namely financial target, financial stability, external pressure, two variables of opportunity element, namely effective monitoring and nature of industry, one variable from the rationalization element, namely change in auditor, one variable from capability element namely change in directors, which is hypothesized to affect financial statements fraud. This study uses earnings management to see the potential for fraudulent financial statements. Earning management is measured using the F-Score indicator. The research sample was selected using a purposive sampling method from 30 manufacturing companies and a research period of 5 years to obtain the number of sample units of 155 data which is listed on the Indonesia Stock Exchange (IDX) for the period of 2013 to 2017. The hypothesis testing used a multiple regression analysis model using SPSS 23. The results of the study indicate that financial targets and changes in auditor financial stability have a significant positive effect on fraudulent financial statements. While external pressure, effective monitoring, nature of industry, financial stability, change of directors, have no effect on financial statements fraud.

scholarly journals Analisis Perbandingan Fraud Pentagon dengan Beneish Ratio dalam Pendeteksian Fraudulent Financial Reporting dengan Opini Audit sebagai Variabel Moderating

2021 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Aris Sanulika ◽  
Wahyu Nurul Hidayati
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Growth Index ◽  
Financial Statements ◽  
Fraudulent Financial Reporting ◽  
Gross Margin ◽  
Publicly Traded Companies ◽  
Asset Quality

ABSTRACTFraudulent Financial Reporting is a deliberate attempt by a company to deceive and mislead users of financial statements, especially investors and creditors, by presenting and manipulating the material value of financial statements. This study aims to determine how the auditor's opinion can moderate the comparative analysis of the pentagon fraud with the beneish ratio in the detection of fraudulent financial reporting. The type of data used in this study is comparative quantitative data. The data source in this study is secondary data. The population in this study are banking companies listed on the IDX. With a sample of 16 publicly traded companies engaged in financial and banking institutions and were listed on the Indonesia Stock Exchange in 2014-2017. The results of this study indicate that of 64 samples there were 12.5% which indicated that the financial statements had been manipulated. Auditor opinions can increase the influence of Financial Stability, external auditor quality, change in auditor, change of directors, days sales in receivables index, sales gross margin Index, Asset Quality Index, growth index, depreciation index, sales, and general administration expenses index, leverage index, total accrual to fraudulent financial reporting. Beneish Ratio affects Fraudulent Financial Reporting while Fraud Pentagon does not affect Fraudulent Financial Reporting

scholarly journals PENGARUH RASIO KEUANGAN TERHADAP KINERJA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA (SEKTOR CONSUMER GOODS INDUSTRY)

2019 ◽  
Author(s):  
Rizka Hadya
Keyword(s):  
Consumer Goods ◽  
Sampling Method ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Analysis Technique ◽  
Consumer Goods Industry ◽  
Solvency Ratio

This research as a purpose to know what influence of liquidity ratio solvency ratio for profitability ratio.This research was conducted on the consumer goods industrycompanies in Indonesia Stock Exchange (IDX) . The data used are secondary data from company financial statements of consumer goods industry. The population in this study is a consumer goods industryand sample period 2013-2017 and used a total of 7 samples from 32 companies . The technique of taking the sample using purposive sampling method The data analysis technique used multiple linear regression analysis using Eviews. The results showed that the variable, Liquidity, Solvency has a positive and significant impact on profitability ( ROE)

scholarly journals ANALISIS FRAUD DIAMOND DALAM DETERMINASI PENDETEKSIAN KECURANGAN LAPORAN KEUANGAN DENGAN FAMILY OWNERSHIP SEBAGAI VARIABEL MODERASI

2020 ◽  
Vol 2 (2) ◽  
pp. 15
Author(s):  
Devira Puri Ayu Melati ◽  
Dwi Jaya Kirana ◽  
Noegrahini Lastiningsih
Keyword(s):  
Linear Regression ◽  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Research Result ◽  
Fraud Detection ◽  
Financial Statements ◽  
Family Ownership ◽  
Regression Analyses ◽  
Fraudulent Financial Reporting

Abstract - The purpose of this research is to determine the influence of financial targets, ineffective monitoring, rationalization, and capability of fraud detection of financial statements. This research also uses family ownership as a moderation variable. The fraudulent financial reporting in this study were measured using earnings management. The population in this research is a banking company listed on the Indonesia Stock Exchange (IDX) for the period 2016-2018. The amount of samples is 123 samples for Model 1 and Model 2. The analytical methods used are multiple linear regression analyses, coesfisien determinations, simultan test (test F) and partial test (Test T) with application SPSS (Statistical Product and Service Solution) version 25th . The research result indicates that financial target, ineffective monitoring, rationalization, and capability have a significant influence on the detection of fraud financial statements and family ownership can moderate variable relationships Capability change of Directors on fraud detection of financial statements. Keywords: fraudulent financial reporting , fraud diamond, family ownership

scholarly journals ANALISIS RASIO KEUANGAN TERHADAP KINERJA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA (SEKTOR CONSUMER GOODS INDUSTRY PERIODE 2010-2014)

2019 ◽  
Author(s):  
Yelis Analisa
Keyword(s):  
Consumer Goods ◽  
Sampling Method ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Analysis Technique ◽  
Consumer Goods Industry ◽  
Solvency Ratio

This research as a purpose to know what influence of liquidity ratio solvency ratio for profitability ratio.This research was conducted on the consumer goods industrycompanies in Indonesia Stock Exchange ( IDX ) . The data used are secondary data from company financial statements of consumer goods industry. The population in this study is a consumer goods industryand sample period 2010-2014 and used a total of 7 samples from 32 companies. The technique of taking the sampleusing purposive sampling method . The data analysis technique used multiple linear regression analysis using Eviews. The results showed that the variable, Liquidity, Solvency has a positive and significant impact on profitability ( ROE)

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