DETEKSI FRAUDULENT FINANCIAL REPORTING MENGGUNAKAN ANALISIS FRAUD PENTAGON : STUDI KASUS PADA PERUSAHAAN MANUFAKTUR  YANG LISTED DI BEI TAHUN 2014-2016

This study aimed to analyze and obtain empirical evidence about the effect of pentagon fraud elements (pressure, opportunity, rationalization, competence, and arrogance) on detected fraudulent financial reporting. This research analyzes the influence of variable pressure proxied by financial stability, financial target, external pressure and personal financial needs, variable opportunity proxied by nature of industry, ineffective monitoring, and, quality of external auditor, variable rationalization proxied by change in auditor, variable arrogance proxied by frequent number of CEO’s pictures.Population of this study manufactured company in Indonesia Stock Exchange during year period 2014-2016 with a total sample 252 manufacture company by using purposive sampling method. Data analysis technique used was logistic regression analysis processed by using program SPSS 23 for Windows. The results of this study show that only the variable financial target have an effect to detected fraudulent financial reporting. This study hasn’t shown that financial stability, external pressure , personal financial needs, nature of industry, ineffective monitoring, quality of external auditor, change in auditor, change of directors, frequent number of CEO’s pictures have an effect to detected fraudulent financial reporting.Keywords: Fraud Pentagon, Fraud Diamond, Fraud Triangle, Fraudulent Financial Reporting, Manufactured Sector Fraud.

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Fraud Pentagon and Fraudulent Financial Reporting: Evidence from Manufacturing Companies in Indonesia and Malaysia

Journal of Accounting and Investment ◽

10.18196/jai.v22i3.12538 ◽

2021 ◽

Vol 22 (3) ◽

pp. 625-646

Author(s):

Erni Suryandari Fathmaningrum ◽

Gupita Anggarani

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

External Pressure ◽

Manufacturing Companies ◽

Fraudulent Financial Reporting ◽

Auditor Change ◽

External Auditor ◽

Financial Need

Research aims: This study aims to examine the influence of fraud pentagon concept on fraudulent financial reporting.Design/Methodology/Approach: This study’s population was manufacturingcompanies listed in Indonesia Stock Exchange and Malaysia Stock Exchange. 120 manufacturing companies in Indonesia and 118 manufacturing companies in Malaysia were involved as samples. The data analysis method used in this study is multiple linear regression.Research findings: The results showed that financial target, financial stability, quality of external auditor, external pressure, and nature of industry variables influenced fraudulent financial reporting. In contrast, personal financial need, ineffective monitoring, change in auditor, change in director, and frequent number of CEO’s pictures variables had no effect on fraudulent financial reporting. For Indonesia, it was found that financial target, financial stability, and the quality of external auditor influenced fraudulent financial reporting. While, in Malaysia, the results showed that financial stability, external pressure, and nature of industry variables influenced fraudulent financial reporting in Malaysia.Theoretical contribution/Originality: These results support the financial target and quality of external auditor hypothesis in Indonesia, financial stability hypothesis in Indonesia and Malaysia, external pressure and nature of industry hypotheses in Malaysia, stating that fraud pentagon factors affect fraudulent financial reporting. It is also proved that there are different levels of fraudulent financial reporting in Indonesia and Malaysia. Indonesia has fraudulent financial reporting cases higher than Malaysia.

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ANALISIS ELEMEN-ELEMEN FRAUD PENTAGON SEBAGAI DETERMINAN FRAUDULENT FINANCIAL REPORTING

KEBERLANJUTAN ◽

10.32493/keberlanjutan.v3i2.y2018.p950-969 ◽

2018 ◽

Vol 3 (2) ◽

pp. 950

Author(s):

Khusnatul Zulfa ◽

Amira Bayagub

Keyword(s):

Real Estate ◽

Financial Reporting ◽

Financial Stability ◽

Linear Regression Analysis ◽

Institutional Ownership ◽

External Pressure ◽

Fraudulent Financial Reporting ◽

Auditor Change ◽

External Auditor

AbstractThis study aims to examine the influence of externalxpressure, institutionalownership, xfinancial stability, xquality of external auditor, xchange inxauditor, change in director and frequentxnumber of CEO’s picture on the fraudulent financial reporting among the property and real estate firms listed in Indonesia stock exchange during 2014-2016. The data used in this study is secondary data obtained from the firms’ annual report which was accessed through www.idx.co.id. The data analysis method used in this study is multiple linear regression analysis. SPSS ver 2.0 was used to analyze the data. The samples were selected using a non-probability sampling technique with a purposive sampling method and obtained a sample of 41 property and real estate companies during 2014-2016. The results of variable test indicates that external pressure and change in director partially influences fraudulent financial reporting, while institutional ownership, financial stability, quality of external auditor, change in auditor, and frequent number of CEO’s picture partially does not influence fraudulent financial reporting. The Simultaneous test shows that external pressure, institutional ownership, financial stability, quality of external auditor, change in auditor, change in director and frequent number of CEO’s picture Keywords: External Pressure, Institutional Ownership, Financial Stability, Quality of External Auditor, Change in Auditor, Change in Director, Frequent Number of CEO’s Picture, Fraudulent Financial Reporting.

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Determinan Fraudulent Financial Reporting Using Fraud Pentagon Analysis

Journal of Auditing Finance and Forensic Accounting ◽

10.21107/jaffa.v6i2.4938 ◽

2019 ◽

Vol 6 (2) ◽

pp. 105-114

Author(s):

Fidyah Quraini ◽

Yuni Rimawati

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

Institutional Ownership ◽

External Pressure ◽

Fraudulent Financial Reporting ◽

Financial Report ◽

External Auditors ◽

Monitoring Quality

This research aimed at knowing factors of fraudulent financial reporting using pentagon fraud analysis. This research analyzed the influence of financial target, financial stability, external pressure, institutional ownership, ineffective monitoring, quality of external auditors, change of auditors, change of directors, and number of CEO’s picture in fraudulent financial report. Sample in this research were 14 go public government companies from 2013 to 2017. Source of data in this research were secondary data in form of annual report in official website of Indonesia Stock Exchange. The examination of this research used logistic regression. The result of this study showed that the influence of external pressure expected fraudulent financial report, while financial target, financial stability, institutional ownership, ineffective monitoring, quality of external auditors, changing auditors, changing directors, and a number of CEO’s picture often did not influence the fraudulent financial reporting.

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Analisa teori fraud pentagon sebagai pendeteksi kecurangan pada laporan keuangan

Journal of Economics Business and Accountancy Ventura ◽

10.14414/jebav.v22i3.1788 ◽

2020 ◽

Vol 22 (3) ◽

Author(s):

Ananda Putra Nindhita Aulia Haqq ◽

Gideon Setyo Budiwitjaksono

Keyword(s):

Financial Performance ◽

Financial Reporting ◽

Internal Control ◽

Financial Stability ◽

Stock Exchange ◽

External Pressure ◽

Political Connection ◽

Fraudulent Financial Reporting ◽

Auditor Change ◽

Report Data

Financial statements are the results of financial reporting that can describe the results of an entity’s financial performance for a period. In other hand, it can cause managers in an entity to fraudulent financial reporting because they want to describe good financial performance. This proves that fraudu-lent financial reporting cases in Indonesia are a matter of weak internal control in an entity. This study aims to test fraud pentagon theory in de-tecting fraudulent financial reporting. The object of this research is testing on financial target, financial stability, external pressure, ineffective moni-toring, nature of industry, change in auditor, change in director, frequent number of CEO, political connection and company existence against fraud-ulent financial reporting of companies classified in the LQ45 index on the Indonesian Stock Exchange (IDX) during the period 2015-2017. This study uses 78 annual report data taken with proportional random sampling based on the number of proportions in each sector of the company. Data analysis using multiple regression analysis. The results of this study indicate that financial stability and frequent number of CEO can be used to detect fraudulent financial reporting. While, financial target, external pressure, ineffective monitoring, nature of industry, change in auditor, change in director, political connection and company existence cannot be used to de-tect fraudulent financial reporting.

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The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach

Jurnal Dinamika Akuntansi ◽

10.15294/jda.v7i1.4036 ◽

2017 ◽

Vol 9 (2) ◽

pp. 154-165

Author(s):

Siska Apriliana ◽

Linda Agustina

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

Sampling Technique ◽

Annual Reports ◽

Fraud Triangle ◽

Manufacturing Companies ◽

Fraudulent Financial Reporting ◽

Fraud Theory

The purpose of this study was to analyze the prediction of fraudulent financial reporting with the perspective of pentagon fraud. Pentagon fraud theory is the development of the theories of fraud triangle and fraud diamond. The Pentagon fraud theory adds an element of arrogance in addition to the other four existing elements namely pressure, opportunity, rationalization, and competence or capacity. The population in this study were 157 manufacturing companies listed on the Indonesia Stock Exchange (IDX) period 2013-2015. The samples of 46 companies were obtained by using purposive sampling technique, so the analysis unit was 138. Data was analyzed by using descriptive statistical analysis and logistic regression analysis. The test result showed that financial stability, the quality of external auditor, and the number of CEOs photos in the annual reports of the companies had a positive effect on the prediction of fraudulent financial reporting, while financial targets, liquidity, institutional ownership, monitoring effectiveness, replacement of external auditors, and changes of corporate directors had no significant effect on the prediction of fraudulent financial reporting. The conclusion of this study indicates that unstable financial condition, the quality of corporate audit and the level of CEO's arrogance can influence the occurrence of fraudulent financial reporting.

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ANALISIS FAKTOR-FAKTOR DALAM PERSPEKTIF FRAUD TRIANGLE SEBAGAI PREDIKTOR FRAUDULENT FINANCIAL REPORTING

E-Jurnal Ekonomi dan Bisnis Universitas Udayana ◽

10.24843/eeb.2018.v07.i01.p09 ◽

2018 ◽

pp. 251

Author(s):

I Gusti Putu Oka Surya Utama ◽

I Wayan Ramantha ◽

I Dewa Nyoman Badera

Keyword(s):

Organizational Structure ◽

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

Sampling Technique ◽

External Pressure ◽

Fraud Triangle ◽

Fraudulent Financial Reporting ◽

Financial Need ◽

Positive Effect

The reduction of financial reporting information’s quality is caused by management fraud behavior by manipulate the financial reporting in order to looks good. This research aims to obtain empirical evidence the effect of fraud triangle factors are financial stability, external pressure, personal financial need, financial targets, nature of industry, ineffective monitoring, organizational structure, and auditor switching to fraudulent financial reporting in nonfinancial companies which listed in Indonesia Stock Exchange period 2012-2014. The sample determined by utilizing purposive sampling technique, therefore as many as 156 of observation sample was obtained. The data observed by logistic regression analysis method. The results show that pressure element these are financial stability, external pressure, and personal financial need has a positive effect to fraudulent financial reporting. Opportunity element these are organizational structure has a negative effect to fraudulent financial reporting. Rationalization element, auditors switching has a positive effect to fraudulent financial reporting. Meanwhile financial targets, nature of industry, and ineffective monitoring have no effect.

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

Asia Pacific Fraud Journal ◽

10.21532/apfj.001.16.01.02.24 ◽

2016 ◽

Vol 1 (2) ◽

pp. 317 ◽

Cited By ~ 1

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.

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Faktor-Faktor Yang Mempengaruhi Fraudulent Financial Reporting

Akuntabilitas ◽

10.15408/akt.v14i2.22557 ◽

2021 ◽

Vol 14 (2) ◽

pp. 139-152

Author(s):

Wulanda Maya Sari ◽

Anik Irawati

Keyword(s):

Logistic Regression ◽

Data Analysis ◽

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

External Pressure ◽

Analysis Method ◽

Fraudulent Financial Reporting ◽

Spss Software ◽

Score Model

This study aims to empirically prove the influence of financial stability, external pressure, and ineffective monitoring on fraudulent financial reporting. Financial stability was measured using a comparison of total assets. External pressure was measured using leverage. Meanwhile, ineffective monitoring was measured using the ratio of independent commissioners’ number. The dependent variable in this study was fraudulent financial reporting. It was measured using the F-Score Model. The sample in this study were 21 State Owned Enterprises (BUMN) listed on Indonesia Stock Exchange in period of 2017-2019. The data analysis method used in this study was Logistic Regression using SPSS software version 20. The results of this study indicate that financial stability has no influence on fraudulent financial reporting. Meanwhile, external pressure and ineffective monitoring influence fraudulent financial reporting.How to cite:Sari, W. M., & Irawati, A. (2021). Faktor-faktor yang Mempengaruhi Fraudulent Financial Reporting. Akuntabilitas: Jurnal Ilmu Akuntansi, 14(2), 139-152.

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FAKTOR YANG MEMPENGARUHI KECURANGAN LAPORAN KEUANGAN DENGAN PERSPEKTIF FRAUD TRIANGLE (Studi Empiris pada Perusahaan Property, Real Estate dan Building Construction)

GEMA : Jurnal Gentiaras Manajemen dan Akuntansi ◽

10.47768/gema.v11i2.165 ◽

2019 ◽

Vol 11 (2) ◽

pp. 137-147

Author(s):

Yohannes Suharsana ◽

Chatarina Prisiena

Keyword(s):

Real Estate ◽

Financial Stability ◽

Stock Exchange ◽

Secondary Data ◽

External Pressure ◽

Financial Statement ◽

Annual Reports ◽

Variable Pressure ◽

Fraud Triangle ◽

Statistical Research

This research is to analyzed influence of variable pressure which proxied by financial stability,external pressure, and financial target, and then variable opportunity which proxied by nature ofindustry, ineffective monitoring, and variable razionalization which proxied by auditor change withfraudulent financial statement which measured with fraud score model (F-Score).The sample used in this research are 26 companies of property, real estate, and buildingconstruction sector that listed in Indonesian Stock Exchange on the period 2011 to 2015. The type datathat used are secondary data, from the annual reports of companies sample.The result of this statistical research showed that the variables of financial stability thatmeasured with change in total asset ratio, financial target variable that measured with ROA (return onassets), and nature of industry variable that measured with the change in receivables ratio has positiveinfluence on the fraudulent financial statement. The research does not prove that external pressurevariable which measured with leverage ratio, ineffective monitoring variable which measured with thepercentage of board members who are outside members, and change auditor which measure withdummy variable has an influence on the fraudulent financial statement.

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Pendeteksian Financial Statement Fraud melalui Komponen Fraud Triangle

JAAF (Journal of Applied Accounting and Finance) ◽

10.33021/jaaf.v5i2.3371 ◽

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

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 2014 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 statement 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.

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