Pengaruh fraud pentagon dalam mendeteksi fraudulent financial reporting

Purpose: This study aims to provide empirical evidence of the influence of financial targets, financial stability, external pressure, institutional ownership, ineffective monitoring, quality of external audits, change in auditors, change of director and frequent number of CEO's picture in detecting fraudulent financial reporting. Research methodology: This study proves that financial targets, external pressure, change in auditors, and frequent numbers of CEO's picture have an effect on detecting fraudulent financial reporting while financial stability, institutional ownership, ineffective monitoring, quality of external audit, and change of director are not influential in detecting fraudulent financial reporting. Results: This study proves that financial targets, external pressure, change in auditors, and frequent numbers of CEO's picture have an effect on detecting fraudulent financial reporting while financial stability, institutional ownership, ineffective monitoring, quality of external audit, and change of director are not influential in detecting fraudulent financial reporting. Limitations: This study used logistic regression analysis using a combined model of Beneish M-Score and Altman Z-Score that still contained an inaccurate classification of fraud and non-fraud. In the research, the R-Square value was low which meant that the ability of independent variables to influence the dependent variable was still low. Contribution: This research is expected to enrich the literature and references that can be used as a reference in other studies as well as in the company. The results of this study are expected to provide a deeper understanding of how to predict fraudulent financial reporting using the Beneish M-Score and Altman Z-Score. Keywords: Fraudulent financial reporting, Fraud pentagon, Beneish M-Score, Altman Z-Score

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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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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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PEMBUKTIAN FRAUD TRIANGLE THEORY PADA FINANCIAL REPORT QUALITY

Jurnal Benefita ◽

10.22216/jbe.v3i3.3247 ◽

2018 ◽

Vol 3 (3) ◽

pp. 380

Author(s):

Edi Edi ◽

Elis Victoria

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Audit Quality ◽

Institutional Ownership ◽

Financial Statements ◽

External Pressure ◽

Fraud Triangle ◽

Fraudulent Financial Reporting ◽

External Audit ◽

Triangle Theory

A perfect and qualified financial statements are the financial statements that each company wants to present. In this competitive era, presenting a good quality reports is a difficult thing for companies, so the thought arises to commit fraudulent financial reporting. A poor quality financial statements is a financial statements that have an element of fraud. Factors in the fraud triangle theory include financial targets, financial stability, external pressure, ineffective monitoring, institutional ownership, external audit quality and change in auditor. The object of this study is the financial statements of all companies listed on the Indonesia Stock Exchange during the period 2012-2016. The sample in this research is taken by using purposive sampling method with total sample as many as 372 companies. The data obtained will be tested using SPSS version 22.0 with binary logistic regression method. Based on the results of research that has been done shows that ineffective monitoring and change in auditor have a significant influence on fraudulent financial reporting. Meanwhile, financial targets, financial stability, external pressure, institutional ownership and external audit quality have no significant influence on fraudulent financial reporting. Laporan keuangan yang sempurna dan berkualitas merupakan laporan keuangan yang ingin disajikan oleh setiap perusahaan. Di era yang semakin kompetitif ini, menyajikan laporan yang berkualitas adalah hal yang sulit bagi perusahaan sehingga muncul pemikiran untuk melakukan tindakan kecurangan terhadap laporan keuangan. Tujuan dari penelitian ini adalah untuk membuktikan faktor-faktor yang terdapat dalam teori fraud triangle terhadap kualitas laporan keuangan. Laporan keuangan dikatakan tidak berkualitas apabila memiliki unsur kecurangan didalam laporan keuangan. Faktor-faktor yang terdapat dalam teori fraud triangle antara lain target keuangan, stabilitas keuangan, tekanan eksternal, ketidakefektifan pengawasan, kepemilikikan saham institusi, kualitas audit eksternal serta pergantian auditor. Objek dari penelitian ini berupa laporan keuangan dari seluruh perusahaan yang terdaftar di Bursa Efek Indonesia selama periode 2012-2016. Sampel dalam penelitian ini diambil dengan menggunakan metode purposive sampling dengan jumlah sampel sebanyak 372 perusahaan. Data yang diperoleh akan diuji dengan menggunakan SPSS versi 22.0 dengan metode regresi logistik biner. Dari hasil pengujian terhadap data yang telah dikumpulkan, terbukti bahwa ketidakefektifan pengawasan dan pergantian auditor berpengaruh signifikan terhadap kecurangan pelaporan keuangan. Sementara, target keuangan, stabilitas keuangan, tekanan eksternal, kepemilikan saham institusi dan kualitas audit eksternal tidak berpengaruh signifikan terhadap kecurangan pelaporan keuangan.

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

Riset Akuntansi dan Keuangan Indonesia ◽

10.23917/reaksi.v3i2.6645 ◽

2018 ◽

Vol 3 (2) ◽

pp. 91-106

Author(s):

Erma Setiawati ◽

Ratih Mar Baningrum

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

External Pressure ◽

Variable Pressure ◽

Fraud Triangle ◽

Fraudulent Financial Reporting ◽

Auditor Change ◽

External Auditor

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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Fraudulent Financial Reporting: An Application of Fraud Pentagon Theory to Association of Southeast Asian Nations Corporate Governance Scorecard

Journal of Advanced Research in Law and Economics ◽

10.14505//jarle.v9.5(35).26 ◽

2019 ◽

Vol 9 (5) ◽

pp. 1729 ◽

Cited By ~ 1

Author(s):

Imang Dapit PAMUNGKAS ◽

St. Dwiarso UTOMO

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Financial Stability ◽

Sampling Technique ◽

External Pressure ◽

Managerial Ownership ◽

Fraudulent Financial Reporting ◽

Audit Opinion ◽

Opinion Change ◽

Insignificant Effect

This study aims to detect and examine fraudulent financial reporting by applying fraud pentagon theory to all companies implementing the Association of Southeast Asian Nations (ASEAN) Corporate Governance Scorecard in Indonesia. This study has the following objectives: to examine and analyze the effect of financial stability, external pressure, financial target, nature of industry, audit opinion, change of directors, managerial ownership against fraudulent financial reporting. In this research, we use correlation research type. The population of this sample is all sectors of companies listed on the Indonesia Stock Exchange. Using sampling technique in the form of Purposive Sampling Technique applying ASEAN Corporate Governance Scorecard in Indonesia with research period of 2012 to 2016, which produce 30 samples, multiple linear regression analysis using SPSS version 22. The results of this study found that financial stability, managerial ownership has a negative and insignificant effect on fraudulent financial reporting. External pressure, nature of industry has a negative and significant effect on fraudulent financial reporting. Financial Target, Audit Opinion, Change of Directors has a positive and insignificant effect on Fraudulent Financial Reporting.

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Fraudulent Financial Reporting Based of Fraud Diamond Theory: A Study of the Banking Sector in Indonesia

JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi) ◽

10.34204/jiafe.v4i2.1112 ◽

2019 ◽

Vol 4 (2) ◽

pp. 135-150

Author(s):

Tarmizi Achmad ◽

Imang Dapit Pamungkas

Keyword(s):

Regression Analysis ◽

Financial Reporting ◽

Financial Stability ◽

Banking Sector ◽

Negative Impact ◽

Total Sample ◽

External Pressure ◽

Fraudulent Financial Reporting ◽

External Variables ◽

Positive Effect

The research aims to analyse whether external pressure, financial stability, financial targets, ineffective monitoring, rationalization and capability effect on fraudulent financial reporting. The population this study is banking company listed on the Indonesia Sctock Exchange with a total sample of 87 banking companies in 2011-2016. Based on the results of research using regression analysis, only external variables of incentive and financial targets have a positive effect on fraudulent financial reporting. Meanwhile, financial stability and capability have a negative impact on fraudulent financial reporting. Further, other variables such as ineffective monitoring and rationalization do not affect fraudulent financial reporting.

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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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FRAUDULENT FINANCIAL REPORTING ON PROPERTY, REAL ESTATE, AND BUILDING CONSTRUCTION COMPANIES

Assets Jurnal Akuntansi dan Pendidikan ◽

10.25273/jap.v10i2.5401 ◽

2021 ◽

Vol 10 (2) ◽

pp. 132

Author(s):

Anik Mega Cahyani ◽

Elva Nuraina ◽

Farida Styaningrum

Keyword(s):

Real Estate ◽

Financial Reporting ◽

Financial Stability ◽

External Pressure ◽

Building Construction ◽

Fraudulent Financial Reporting ◽

Purposive Sampling ◽

External Auditors ◽

Construction Companies ◽

Data Collection Technique

ABSTRACTThe purpose of this research is to detect fraudulent financial reporting in the property, real estate, and building construction sectors listed on the IDX based on the perspective of the fraud pentagon theory. The data collection technique used purposive sampling and data analysis using logistic regression. The results indicate that external pressure factors, ineffective monitoring, quality of external auditors, auditor turnover, rationalization proxied by auditor opinion, change of directors, and political connections affected FFR. Meanwhile, financial target factors, financial stability, institutional ownership, and the frequency of the appearance of the CEO image in the annual report do not affect FFR.ABSTRAKPenelitian ini bertujuan untuk mendeteksi kecurangan pelaporan keuangan pada sektor properti, real estate, dan konstruksi bangunan yang terdaftar di BEI berdasar perspektif teori fraud pentagon. Pengumpulan data menggunakan teknik purposive sampling dan analisis data menggunakan regresi logistik. Hasil penelitian menunjukkan bahwa faktor tekanan eksternal, pengawasan yang tidak efektif, kualitas auditor eksternal, pergantian auditor, rasionalisasi yang diproksikan dengan opini auditor, pergantian direksi, dan hubungan politik berpengaruh terhadap FFR. Sedangkan faktor target keuangan, stabilitas keuangan, kepemilikan institusional, dan frekuensi kemunculan gambar CEO dalam laporan tahunan tidak berpengaruh terhadap FFR.

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ANALISIS PENGARUH FRAUD PENTAGON DALAM MENDETEKSI FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN JASA NONKEUANGAN

Jurnal Manajemen ◽

10.31937/manajemen.v12i1.1596 ◽

2020 ◽

Vol 12 (1) ◽

pp. 104-124

Author(s):

Yuliamos Tirta Wijaya Pasaribu ◽

Synthia Madya Kusumawati ◽

L. Jade Faliany

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

Secondary Data ◽

Financial Statements ◽

External Pressure ◽

Annual Reports ◽

Fraudulent Financial Reporting ◽

Service Companies ◽

Positive Effect

Abstract– This research aimed at analyzing the effect of fraud pentagon proxied by nine variables, namely financial stability, personal financial needs, external pressure, financial targets, ineffective monitoring, industry characteristics, auditor changes, director changes, and frequent number of CEO’s picture towards fraudulent financial reporting proxied by Beneish M-Score at non-financial service companies listed on the Indonesia Stock Exchange (IDX) period 2015-2017. The data used were secondary data obtained from annual reports and financial statements of nonfinancial service companies period 2015-2017 with a total of 285 eligible samples. The data analysis methods used were descriptive statistical analysis and logistic regression analysis. The results showed that the variables of financial stability and the nature of the industry generated a significant and positive effect on fraudulent financial reporting. Meanwhile, the variables of personal financial needs, external pressure, financial targets, ineffective monitoring, auditor changes, director changes, and often the CEO's image were not significant to fraudulent financial reporting. Keywords: Fraud Pentagon, Fradulent Financial Reporting, Beneish M-Score

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