Fraud factors of financial statements on construction industry in Indonesia stock exchange

This research was intended at analyzing the fraud factors of the financial statement using the fraud triangle theory approach. Financial statements manipulation was a fraud form. It was generally difficult to detect. The population was all companies engaged in the construction industry sector. They were listed on the Indonesia Stock Exchange in 2013-2017. The multiple regression is applied for the determination of the sample using purposive sampling techniques and data analysis techniques. The statistical test results showed the opportunity proxied by the audit committee illustrates the effectiveness of the control. It has been negatively affecting the fraudulent financial statements. The rationalization proxied by the auditor’s change has a positive effect on the fraudulent financial statements. This study also contributed to the fraud triangle theory. It was provided evidence that elements in the fraud triangle model. They can be used to detect fraudulent financial statements.

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Factors that Influence Fraudulent Financial Statements in Retail Companies - Indonesia

JAAF (Journal of Applied Accounting and Finance) ◽

10.33021/jaaf.v2i2.548 ◽

2019 ◽

Vol 2 (2) ◽

pp. 99

Author(s):

Rian Ferdinand ◽

Setyarini Santosa

Keyword(s):

Significant Influence ◽

Audit Committee ◽

Stock Exchange ◽

Financial Statements ◽

Financial Statement ◽

Managerial Ownership ◽

Fraudulent Financial Statements

Fraudulent financial statements is an intentionally misstatement of the financial statements. There are several factors affected the evidence of fraudulent financial statements report. The objective of this research is to investigate the influence of audit committee characteristics, managerial ownership, leverage, and liquidity toward the fraudulent financial statements report in retail companies listed on the Indonesia Stock Exchange in the period of 2012-2016. Using regression, the result shows that audit committee characteristic and leverage do not have significant effect on the fraudulent financial statements report, while managerial ownership and liquidity have. Simultaneously, audit committee characteristics, managerial ownership, leverage and liquidity have significant influence to the fraudulent financial statement report.

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Fraud Diamond Model for Fraudulent Financial Statement Detection

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.c5838.098319 ◽

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.

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Factors Influencing the Presentation of Fraudulent Financial Reporting in Indonesia

Journal of Advanced Research in Law and Economics ◽

10.14505//jarle.v9.1(31).31 ◽

2018 ◽

Vol 9 (1) ◽

pp. 254 ◽

Cited By ~ 1

Author(s):

Fahmi RIZANI ◽

Novita WeningTyas RESPATI

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Audit Committee ◽

Stock Exchange ◽

Sample Selection ◽

Financial Statements ◽

External Pressure ◽

Fraud Triangle ◽

Financial Need ◽

Fraudulent Financial Statements

This study examines the factors that influence the preparation and presentation of fraudulent financial statements basing on the fraud triangle theory. The purpose of this research is to examine and analyze the influences of financial stability (asset change), external pressure, personal financial need (insider ownership), financial targets, ineffective monitoring (by audit committee), and rationalization (auditor’s opinion) on making fraudulent financial statements. The population in this study is a manufacturing company listed on the Indonesia Stock Exchange in 2013 to2015. Sample selection is by purposive sampling. Data used in the analysis was of 147 companies. The data analysis technique for hypothesis testing was by logistic regression analysis. Results of this research indicate that financial stability, external pressure, personal financial need, and rationalization have no significant effect on making fraudulent financial statements. Although the results of this study can not prove the factors that affect fraud in the presentation of financial statements, but companies need to be vigilant to prevent fraud in the presentation of financial statements. Companies must be able to perform early detection of the occurrence of fraudulent financial statements for the survival of the entity.

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Application of fraud pentagon in detecting financial statement fraud

International Research Journal of Management IT and Social Sciences ◽

10.21744/irjmis.v6n5.706 ◽

2019 ◽

Vol 6 (5) ◽

pp. 73-80

Author(s):

R. Daniel Eka Prasetya Antawirya ◽

I Gusti Ayu Made Dwija Putri ◽

I Gde Ary Wirajaya ◽

I Gusti Ngurah Agung Suaryana ◽

Herkulanus Bambang Suprasto

Keyword(s):

Audit Committee ◽

Stock Exchange ◽

Sampling Technique ◽

Financial Statements ◽

Financial Statement ◽

Financial Statement Fraud ◽

Study Results ◽

Research Population ◽

Negative Effect ◽

Fraudulent Financial Statements

Financial statements manipulation was a fraud form which is generally difficult to detect. The study was intended to analyze fraud pentagon elements in detecting fraudulent financial statements. The research population was all financial sector companies listed on the Indonesia Stock Exchange for the 2015-2018 period. Purposive sampling technique was used to determine the research sample and data analysis techniques used multiple regression. Based on the test results, it shows the financial set has a positive positive effect on fraudulent financial statements and the number of audit committee meetings that reflect effectiveness has a negative effect on fraudulent financial statements. The study results also contribute to the fraud pentagon theory and provide evidence that elements on fraud pentagon model can be used to detect fraudulent financial statements.

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MEASURING THE LEVEL OF FRAUD ON FINANCIAL STATEMENTS: MODEL OF FRAUD TRIANGLE (Case Studies on Companies Listed on the Indonesia Stock Exchange in 2014-2018)

Jurnal Ekobis : Ekonomi Bisnis & Manajemen ◽

10.37932/j.e.v11i1.253 ◽

2021 ◽

Vol 11 (1) ◽

pp. 133-149

Author(s):

Ramdany Ramdany ◽

Resty Harmenawati ◽

Samukri Samukri

Keyword(s):

Data Analysis ◽

Financial Stability ◽

Stock Exchange ◽

Financial Statements ◽

Financial Statement ◽

Fraud Triangle ◽

Financial Statement Fraud ◽

Analysis Techniques ◽

Independent Variables ◽

Fraudulent Financial Statements

This study aims to measure the level of fraudulent financial statements with the fraud triangle model. The independent variables are pressure, opportunity, rationalization, and the dependent variable is fraudulent financial statements. The population in this study is companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018 with a sample of 100 companies. Data analysis techniques using multiple linear regression. The results show that the pressure with proxies the financial stability and financial target and the opportunity with proxy the nature of industry has significant effect on the financial statement fraud. Meanwhile, the opportunity with proxies the ineffective monitoring and rationalization have not significant effect on the financial statement fraudulent.

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Analysis of the Effect of Fraud Pentagon Factors on Fraudulent Financial Statement with Audit Committee as Moderating Variable

Accounting Analysis Journal ◽

10.15294/aaj.v10i1.44520 ◽

2021 ◽

Vol 10 (1) ◽

pp. 39-46

Author(s):

Krisna Dewi ◽

Indah Anisykurlillah

Keyword(s):

Audit Committee ◽

Stock Exchange ◽

Sampling Technique ◽

Financial Statements ◽

Financial Statement ◽

Ceo Duality ◽

External Auditors ◽

Company Growth ◽

Fraudulent Financial Statements

This study aims to analyze the effect of fraud pentagon on fraudulent financial statements with audit committee as moderating variable. The population of this study was the property, real estate, and construction companies listed on the Indonesia Stock Exchange during 2016-2018. The sampling technique used purposive sampling and obtained 52 companies with 156 units of analysis. The data were analyzed using logistic regression analysis by IBM SPSS Ver.26. The results showed that company growth had a positive effect on fraudulent financial statements. Meanwhile, the effectiveness of supervision, quality of external auditors, the experience of directors, and CEO duality did not affect fraudulent financial statements. Audit committee significantly moderated the effect of company growth, the effectiveness of supervision, and the experience of directors on fraudulent financial statements. However, audit committee did not moderate the effect of quality of external auditors and CEO duality on fraudulent financial statements. This study concludes that the fraudulent financial statements will be higher when the company growth is higher. Audit committee weakens the effect of company growth, the effectiveness of supervision, and the experience of directors on fraudulent financial statements. Keywords: Fraudulent Financial Statement; Fraud Pentagon; Audit Committee

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Kecurangan Dalam Laporan Keuangan “Menguji Teori Froud Triangle”

JURNAL AKUNTANSI DAN PAJAK ◽

10.29040/jap.v19i1.241 ◽

2018 ◽

Vol 19 (1) ◽

pp. 77

Author(s):

Langgeng Prayitno Utomo

Keyword(s):

Logistic Regression ◽

Fraud Detection ◽

Financial Statements ◽

External Pressure ◽

Fraud Triangle ◽

Triangle Theory ◽

Fraudulent Financial Statements

This study aims to examine the factors that affect the fraudulent financial statements of the company. Fraud detection of financial statements using fraud triangle theory. Based on the theory of fraud triangle there are three factors: pressure, opportunity, and rationalization are used as parameters to detect fraud. The sample of this study used 44 companies in 3 years of observation, where the company is divided into companies that are indications of fraud and not by doing the analysis using the calculation of the underlying M-score, this study used logistic regression, the result that the indication of fraud in this study only can be obtained from external pressure factors on pressure variables and the effectiveness of monitoring on the opportunity variables, this study fails to establish influence in three factors at once ie pressure, opportunity, and rational

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DETECTION OF FRAUDULENT FINANCIAL STATEMENT THROUGH PENTAGON THEORY WITH AUDIT COMMITTEE AS MODERATING

ECONOMICS & ACCOUNTING JOURNAL ◽

10.32493/eaj.v4i1.y2021.p35-47 ◽

2021 ◽

Vol 4 (1) ◽

pp. 35

Author(s):

Ely Indriyani ◽

Dhini Suryandari

Keyword(s):

Regression Analysis ◽

Financial Stability ◽

Audit Committee ◽

Stock Exchange ◽

Sampling Technique ◽

Financial Statements ◽

Analysis Data ◽

External Pressure ◽

Analysis Technique ◽

Fraudulent Financial Statements

This study aims to examine financial targets, financial stability, external pressure, personal financial needs, effective monitoring, nature of industry, total accruals, change of directors, and CEO duality in detecting fraudulent financial statements with the audit committee as the moderating variable. The population of this research is 20 state-owned companies listed on the Indonesia Stock Exchange (BEI) in 2014-2018. Sampling using saturated sampling technique and obtained a final sample of 100 units of analysis. Data collection using documentation techniques. The data analysis technique used regression analysis and Moderated Regression Analysis (MRA). The results of this study indicate that external pressure and the nature of industry have a significant positive effect on the detection of fraudulent financial statements. The audit committee is able to moderate the influence of financial targets, external pressure, nature of industry, and change of directors on the detection of fraudulent financial statements

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The Influence of Independent Commissioners, Audit Committee and Company Size on the Integrity of Financial Statements

Studies of Applied Economics ◽

10.25115/eea.v39i10.5339 ◽

2021 ◽

Vol 39 (10) ◽

Author(s):

Dirvi Surya Abbas ◽

Tubagus Ismail ◽

Muhamad Taqi ◽

Helmi Yazid

Keyword(s):

Data Analysis ◽

Audit Committee ◽

Positive Impact ◽

Stock Exchange ◽

Financial Statements ◽

Financial Statement ◽

Financial Reports ◽

Large Corporation ◽

Internal Auditors ◽

Chemical Products

The aim of this study would be to see how independence commissioners, internal auditors, and size of the company affect the financial statement reputation of companies listed on the Indonesia Stock Exchange that produce basic industrial and chemical products (IDX). The findings revealed that having an impartial board of commissioners had a substantial positive impact on financial statement transparency, while having an audit committee and a large corporation had no significant impact. Based on the findings of data analysis research, the audit committee cannot boost the accuracy of the company's financial statements, according to this report. Meanwhile, one of the audit committee's responsibilities is to enhance the accuracy of the company's financial reports such that the details in the financial statements remains current and trustworthy. The internal auditors cannot improve the integrity of the company's financial statements based on the results of data analysis testing. In the meantime, one of the internal auditors tasks is to improve the accuracy of the company's financial reports so that the financial statements' details remain current and reliable. The audit committee cannot enhance the credibility of the company's financial statements based on the findings of data analysis research.

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Determinants in detecting fraud triangle of financial statements on companies registered in Jakarta Islamic Index (JII) period 2012-2018

Journal of Islamic Accounting and Finance Research ◽

10.21580/jiafr.2020.2.1.4818 ◽

2020 ◽

Vol 2 (1) ◽

pp. 117

Author(s):

Iwan Budiyono ◽

Melati Sari Dewi Arum

Keyword(s):

Financial Stability ◽

Secondary Data ◽

Financial Statements ◽

External Pressure ◽

Financial Statement ◽

Fraud Triangle ◽

Analysis Model ◽

Financial Statement Fraud ◽

External Pressures ◽

Fraudulent Financial Statements

Purpose - The purpose of study was to examine the effect financial statement fraud based on the fraud triangle with a number of variables such as financial stability, external pressure, financial target, personal financial needs, opportunity and rasionalization in companies listed in Jakarta Islamic Index (JII) period 2012-2018.Method - The population are all companies listed in JII period 2012-2018. The sample is 6 companies that were feasible to analyze. The data used in this research is secondary data obtained from the annual report. The data analysis model applied multiple linier regression data panel using SPSS 25.Result - The results showed that the fraud triangle in the categories of financial stability, external pressure, financial targets, personal financial needs, opportunity and rationalization simultaneously affect the fraudulent financial statements. Furthermore financial stability, personal financial needs and opportunity partially negatively related and had no significant effect on financial statement fraud; while external pressures, financial targets and rationalization have positive and significant effects on financial statement fraud on companies listed in JII period 2012-2018.Implication - Companies Registered in JII are suggested to improve the financial performance in accordance with sharia principles.Originality - This research is the first study using multiple linier regression data panel.

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