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)

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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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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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

Journal of Business Economics ◽

10.35760/eb.2018.v23i2.1828 ◽

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

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FRAUD TRIANGLE SEBAGAI PENDETEKSI KECURANGAN LAPORAN KEUANGAN

Jurnal Akuntansi ◽

10.24912/ja.v21i1.133 ◽

2017 ◽

Vol 21 (1) ◽

pp. 47

Author(s):

Wahyuni Wahyuni ◽

Gideon Setyo Budiwitjaksono

Keyword(s):

Financial Services ◽

Financial Stability ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Financial Statements ◽

Multiple Linear Regression Analysis ◽

External Pressure ◽

Fraud Triangle ◽

Financial Statement Fraud ◽

Fraudulent Financial Statements

The financial statements are structured representation of the financial position shows the financial performance of an entity. On the other hand, the Financial Services Authority in Indonesia gave the sanction to capital market players for cheating Financial Statements. This shows that the financial statement fraud cases occurring in Indonesia are part of the failure of an audit conducted by the Public Accounting Firm (KAP). This study aims to examine the influence of fraud triangle in detecting fraudulent financial statements. The object of this study using the financial statements of companies listed on the Indonesia Stock Exchange in the 2012-2014 time period. This study uses 123 data samples are taken using purposive criteria. The data were analyzed using multiple linear regression analysis. The results showed that razionalization significant effect on the financial statements fraud. Meanwhile, the financial stability, external pressure, financial targets, the nature of the industry, ineffective monitoring did not significantly affect the financial statements fraud. This study contributes to the regulators to adopt measures to improve the quality of audits, especially in detecting fraud.

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THE EFFECT OF FRAUD TRIANGLE IN DETECTING FINANCIAL STATEMENT FRAUD

Jurnal Akuntansi ◽

10.33369/j.akuntansi.10.3.231-244 ◽

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

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

Jurnal Reviu Akuntansi dan Keuangan ◽

10.22219/jrak.v6i1.5077 ◽

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

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FRAUD TRIANGLE ANALYSES IN DETECTING FRAUDULENT FINANCIAL STATEMENT USING FRAUD SCORE MODEL

Journal of Business Economics ◽

10.35760/eb.2020.v25i1.2240 ◽

2020 ◽

Vol 25 (1) ◽

pp. 29-44

Author(s):

Mariati ◽

Emmy Indrayani

Keyword(s):

Financial Stability ◽

Linear Regression Analysis ◽

Financial Statements ◽

Multiple Linear Regression Analysis ◽

External Pressure ◽

Financial Statement ◽

Fraud Triangle ◽

Financial Statement Fraud ◽

Financial Condition ◽

Score Model

Company’s financial condition reflected in the financial statements. However, there are many loopholes in the financial statements which can become a chance for the management and certain parties to commit fraud on the financial statements. This study aims to detect financial statement fraud as measured using fraud score model that occurred in issuers entered into the LQ-45 index in 2014-2016 with the use of six independent variables are financial stability, external pressure, financial target, nature of industry, ineffective monitoring and rationalization. This study using 27 emiten of LQ-45 index during 2014-2016. However, there are some data outlier that shall be removed, thus sample results obtained 66 data from 25 companies. Multiple linear regression analysis were used in this study. The results showed that the financial stability variables (SATA), nature of industry (RECEIVBLE), ineffective monitoring (IND) and rationalization (ITRENDLB) proved to be influential or have the capability to detect financial statement fraud. While the external pressure variables (DER) and financial target (ROA) are not able to detect the existence of financial statement fraud. Simultaneously all variables in this study were able to detect significantly financial statement fraud.

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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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Pengaruh Stabilitas Keuangan, Kondisi Industri dan Tekanan Eksternal Terhadap Kecurangan Laporan Keuangan

Jurnal Kajian Akuntansi ◽

10.33603/jka.v2i1.1247 ◽

2018 ◽

Vol 2 (1) ◽

pp. 82

Author(s):

Didin Ijudien

Keyword(s):

Financial Reporting ◽

Financial Stability ◽

Stock Exchange ◽

Financial Statements ◽

Industrial Sector ◽

Financial Statement ◽

Financial Statement Fraud ◽

Purposive Sampling ◽

Normality Test ◽

Research Show

AbstractThe Financial Statement Fraud is an intentional mistakes aimed to deceive the users of the financial statements is ultimately detrimental to the users of the financial statements themselves. This research aims to analyze the influence of Financial Stability, Nature Of Industry and External Presure partially against the The Financial Statement Fraud on the company's industrial sector manufacturing consumer goods listed on the Indonesia stock exchange for the period 2013 up to 2016. The selection of the sample in this research was done using a purposive sampling method and retrieved 104 corporate data as sample. The data used are of financial reporting data auditan from the company published through the site www.idx.co.id and the official website of each company. Data analysis method used in this research is by using multiple linear regression. Before using regression analysis, then performed a classic assumption test first, which includes a test of normality, test multikolonieritas, autocorrelation test, and test heteroskedastisitas. Testing in this study performed using SPSS software version 23 for windows. The results of this research show that partially Financial Stability, Nature Of Industry and External Presure have no effect against the Financial Statement Fraud. Keyword: Financial Stability, Nature Of Industry, External Presure and the Financial Statement Fraud.AbstrakKecurangan laporan keuangan merupakan suatu kesalahan yang disengaja bertujuan untuk menipu para pengguna laporan keuangan yang pada akhirnya merugikan penguna laporan keuangan itu sendiri. Penelitian ini bertujuan untuk menganalisis pengaruh stabilitas keuangan, kondisi industri, dan tekanan eksternal secara parsial terhadap kecurangan laporan keuangan pada perusahaan manufaktur sektor industri barang konsumsi yang terdaftar di Bursa Efek Indonesia untuk periode 2013 sampai dengan 2016. Pemilihan sampel pada penelitian ini dilakukan dengan menggunakan metode purposive sampling dan diperoleh 104 data perusahaan sebagai sampel. Data yang digunakan adalah data laporan keuangan auditan dari perusahaan yang dipublikasikan melalui situs www.idx.co.id dan website resmi masing-masing perusahaan. Metode analisis data yang digunakan pada penelitian ini adalah dengan menggunakan regresi linear berganda. Sebelum menggunakan analisis regresi, maka dilakukan uji asumsi klasik terlebih dahulu, yang meliputi uji normalitas, uji multikolonieritas, uji autokorelasi, dan uji heteroskedastisitas. Pengujian dalam penelitian ini dilakukan dengan menggunakan software SPSS versi 23 for windows. Hasil penelitian ini menunjukkan bahwa secara parsial stabilitas keuangan, kondisi industri, dan tekanan eksternal tidak berpengaruh terhadap kecurangan laporan keuangan. Kata Kunci: Stabilitas keuangan, kondisi industri, tekanan eksternal, dan kecurangan laporan keuangan

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DETERMINAN FINANCIAL STATEMENT FRAUD DENGAN MENGGUNAKAN PENDEKATAN FRAUD TRIANGLE

AKUNTABILITAS ◽

10.29259/ja.v12i2.9339 ◽

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.

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Pengaruh Pentagon Fraud Terhadap Fraudulent Financial Statement Dengan KualitasLaba Sebagai Variabel Moderasi

Jurnal Kajian Ilmiah ◽

10.31599/jki.v20i3.284 ◽

2020 ◽

Vol 20 (3) ◽

pp. 269-280

Author(s):

Abdurrachman Abdurrachman ◽

Suhartono Suhartono

Keyword(s):

Stock Exchange ◽

Earnings Quality ◽

Financial Statements ◽

Financial Statement ◽

Manufacturing Companies ◽

Financial Statement Fraud ◽

Purposive Sampling ◽

Moderating Variables ◽

Negative Effect ◽

Fraudulent Financial Statements

Financial statement fraud is a serious and constructive problem for external parties of the company, especially for investors. This study aims at factors that cause false financial statements with variables as moderating variables. The factors used in this study are pentagon fraud theory which consists of variables of pressure, opportunity, rationalization, competence, and arrogance. This study uses the company in the Indonesia Stock Exchange 2016-2017 period as a research sample. Based on the results of purposive sampling obtained 204 data manufacturing companies that meet the sample. Testing the hypothesis in this study was carried out using logistic regression analysis. The results of testing the hypothesis to see the effect on fraudulent financial statements indicate that competence has a significant positive effect, pressure has a negative effect, the opportunity has no significant effect, rationalization has no significant effect, arrogance has no significant effect. In the moderating variable earnings, quality cannot weaken the influence of pressure, opportunity, rationalization, and arrogance on fraudulent financial statements, but earnings quality can weaken the influence of competence on fraudulent financial statements. Simultaneous testing shows that the overall variable has a significant effect on fraudulent financial statements. Keywords: Fraudulent Financial Statement, Pentagon Fraud Abstrak Kecurangan laporan keuangan merupakan masalah yang serius dan menjadi ancaman bagi pihak-pihak eksternal perusahaan, khususnya bagi investor. Beberapa penelitian mengenai faktor faktor yang berpengaruh pada fraudulent financial statement telah dilakukan. Penelitian ini bertujuan menguji kembali faktor-faktor yang mempengaruhi fraudulent financial statement dengan menambahkan kualitas laba sebagai variabel moderasi. Faktor-faktor yang diuji dalam penelitian ini adalah teori pentagon fraud yang terdiri dari variabel pressure, opportunity, rationalization, competence, dan arrogance. Penelitian ini menggunakan perusahaan manafaktur terdaftar di Bursa Efek Indonesia periode 2016-2017 sebagai sampel penelitian. Berdasarkan hasil purposive sampling diperoleh 204 data perusahaan manufaktur yang memenuhi kriteria sampel. Pengujian hipotesis dalam penelitian ini dilakukan dengan menggunakan analisis regresi logistik. Hasil pengujian hipotesis untuk melihat pengaruh terhadap fraudulent financial statement menunjukkan bahwa competence berpengaruh positif signifikan, pressure berpengaruh negatif, opportunity tidak berpengaruh signifikan, rationalization tidak berpengaruh signifikan, arrogance tidak berpengaruh signifikan. Pada variabel moderasi kualitas laba tidak dapat memperlemah pengaruh pressure, opportunity, rationalization dan arrogance terhadap fraudulent financial statement, namun kualitas laba dapat memperlemah pengaruh competence pada fraudulent financial statement. Pengujian secara simultan menunjukkan bahwa variabel secara keseluruhan berpengaruh signifikan terhadap fraudulent financial statement. Kata kunci: Fraudulent Financial Statement, Pentagon Fraud

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