scholarly journals The Effect of Hexagon Fraud on the Potential Fraud Financial Statements with the Audit Committee as a Moderating Variable

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Agustina Riyanti ◽  
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Political Connection ◽  
Financial Statement Fraud ◽  
Financial Pressure ◽  
Negative Effect ◽  
Ceo Narcissism

This study aims to obtain empirical evidence of the influence of the six elements of fraud hexagon theory on potential financial statement fraud by involving the audit committee which acts as a moderating variable in the financial statements of state- owned companies listed on the Indonesia Stock Exchange in 2016-2020. Potential financial statement fraud is measured using the f-score model. The research sample was obtained by the purposive sampling technique. Data analysis methods and techniques include descriptive statistics, evaluation of the SEM-PLS model, and hypothesis testing. The results show that financial pressure has a positive effect on potential financial statement fraud, effective monitoring has a negative effect on potential financial statement fraud, while related party transactions, CEO education, CEO narcissism, and political connection do not affect potential financial statement fraud. The role of the audit committee as a moderating variable is only able to weaken the relationship between financial pressure and potential financial statement fraud.

scholarly journals Application of fraud pentagon in detecting financial statement fraud

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.

scholarly journals Pengujian Fraud Diamond Theory Pada Indikasi Financial Statement Fraud Di Indonesia

2020 ◽  
Vol 30 (6) ◽  
pp. 1441
Author(s):  
Ni Kadek Suparmini ◽  
Dodik Ariyanto ◽  
I Made Andika Pradnyana Wistawan
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Determination Method ◽  
Manufacturing Companies ◽  
Financial Statement Fraud ◽  
Analysis Technique ◽  
Negative Effect ◽  
Financial Need

This study aims to obtain empirical evidence of fraud diamond theory. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2015-2017 period. The sample determination method used is nonprobability sampling with purposive sampling technique. There are 145 companies as a population with a total of 66 companies as samples. The data analysis technique used is multiple linear regression. Based on the results of the analysis, it was stated that the nature of industry had a negative effect on indications of financial statement fraud while financial need, auditor firm size, and change of directors had no effect on indications of financial statement fraud. This study has implications for shareholders, regulators, or parties who use information in financial statements as a consideration in providing an assessment of the chances of fraudulent actions on the company's financial statements. Keywords: Diamond Fraud; Financial Statement Fraud.

scholarly journals PENGARUH KOMPETENSI KOMITE AUDIT, KEPEMILIKAN MANAJEMEN DAN UKURAN DEWAN KOMISARIS TERHADAP KUALITAS LAPORAN KEUANGAN

2021 ◽  
Vol 23 (1) ◽  
pp. 121-132
Author(s):  
WAHDAN ARUM INAWATI ◽  
MUHAMAD MUSLIH ◽  
KURNIA KURNIA
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Managerial Ownership ◽  
Management Ownership ◽  
Food And Beverage ◽  
Negative Effect ◽  
Positive Effect

This research aims to determine the influence of audit committee competency, managerial ownership, and size board of financial statements quality. Financial statement quality in this research measured by relevance. The research method applied quantitative causality method. The object of research is the food and beverage subsector companies listed on Indonesia Stock Exchange in period 2015 – 2018. The sample of this research which complied 8 samples with period of 4 years, so the data processed 32 data. The result of this research 62.1% independent variables can explain the quality of financial statements, while 37.9% is explained by other variables not included in this research. The audit committee competency variables, management ownership and the size of the board of commissioners have a simultaneous influence on the quality of financial statements. The audit committee competency variable has a negative effect while the size of the board of commissioners has a positive effect on the quality of financial statements partially. While management ownership has no influence on the quality of financial statements.

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

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

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 Can Fraud Diamond Affect Fraud Financial Statement In Sharia Commercial Banks?

2021 ◽  
Vol 11 (1) ◽  
pp. 40-57
Author(s):  
Dinnul Alfian Akbar ◽  
Fernando Africano ◽  
Ridandy Isrodinata
Keyword(s):  
Logistic Regression ◽  
Commercial Banks ◽  
Financial Stability ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Dummy Variable ◽  
Pressure Variable ◽  
Negative Effect

This research aims to obtain empirical evidence of the effect of fraud diamond (pressure as proxied by financial stability, opportunity which is proxied by effective monitoring, rationalization which is proxied by total accruals, and proxied capability by change of directors) on financial statement fraud at Islamic Commercial Banks. The population in this study were banking companies that were on the list of Islamic Commercial Banks. Then the sample was taken using purposive sampling technique. The research used logistic regression because the dependent variable is a dummy variable. The results of this research indicate that the pressure variable has no effect on financial statement fraud. Opportunity variable has a negative effect on financial statement fraud. Then, the rationalization variable has a negative effect on financial statement fraud. And the capability variable has no effect on financial statement fraud. The results of this study are expected to be useful for companies, especially banking, as a material for consideration in preventing fraud on financial statements.  

scholarly journals Effect of Financial Liquidity, Audit Rotation and Audit Tenure on Financial Statement Fraud

2019 ◽  
Vol 9 (1) ◽  
pp. 3326-3331
Keyword(s):  
Research Method ◽  
Stock Exchange ◽  
Sample Selection ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Food And Beverage ◽  
Financial Liquidity ◽  
Fraudulent Financial Statements

Cases of financial statement fraud today are increasingly prevalent. Cases of this type of fraud result in material losses that are not insignificant. Many investors and creditors as well as the general public are victims of this type of fraud. Not only in European and US countries, in Indonesia there are also many cases of fraudulent financial statements. Financial statement fraud can occur due to many things. This study aims to analyze the effect of financial liquidity, audit rotation and audit tenure on financial statement fraud. Population determined is a manufacturing company with a food and beverage subsector listed on the Indonesia Stock Exchange period 2013-2018. The sample selection is done by purposive sampling technique, the sample results that meet the criteria are 78 samples. The research method used is multiple linear methods, where the results of the research partially show that the liquidity financial variable does not significantly affect fraudulent financial statements, variable audit rotations significantly influence fraudulent financial statements, and variable audit tenure does not significantly influence financial statement fraud.

scholarly journals Pentagon fraud perspective analysis in detecting indications of financial statement fraud

2021 ◽  
Vol 8 (6) ◽  
pp. 619-629
Author(s):  
Ni Putu Winda Ayuningtyas ◽  
I Putu Sudana ◽  
I Wayan Suartana ◽  
Ni Putu Sri Harta Mimba
Keyword(s):  
Stock Exchange ◽  
Sample Selection ◽  
Sampling Technique ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Analysis Technique ◽  
Negative Effect ◽  
The Government ◽  
Financial Need ◽  
Fraudulent Financial Statements

This study aims to obtain empirical evidence regarding the elements of fraud pentagon theory on indications of financial statement fraud. This research was conducted on banking companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2020 period. The method of determining the sample used is non-probability sampling with purposive sampling technique. The number of samples that meet the sample selection criteria are 140 samples, namely 35 banking companies during the four years of observation 2017-2020. The data analysis technique used is multiple linear regression. Based on the results of the analysis, it is stated that the nature of industry and change of directors have a negative effect on indications of financial statement fraud, while personal financial need, rationalization, and CEO duality have no effect on indications of financial statement fraud. This study has implications for investors, creditors, the government and other parties who need financial statement information to consider the elements of the fraud pentagon theory to detect indications of fraudulent financial statements in banking companies.

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

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

scholarly journals Pengaruh Kecurangan Laporan Keuangan terhadap Nilai Perusahaan: Ditinjau dari Perspektif Fraud Pentagon (Kasus di Indonesia)

2020 ◽  
Vol 20 (1) ◽  
pp. 121
Author(s):  
Desi Elviani ◽  
Syahril Ali ◽  
Rahmat Kurniawan
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Stock Exchange ◽  
Sample Selection ◽  
Financial Statement ◽  
Fraudulent Financial Reporting ◽  
Financial Statement Fraud ◽  
Company Value ◽  
Negative Effect ◽  
Five Elements

This study aims to examine how the influence of fraudulent financial reporting on firm value is viewed from the perspective of a pentagon fraud with a sample of 71 companies from the infrastructure, utilities and transportation sectors in the Indonesia Stock Exchange in 2014-2018. The sample selection used was purposive sampling method. Company value is measured by price book value, financial statement fraud is measured by fraud-score models. There are two variables that have a positive and significant influence, namely the opportunity and arrogance variables, the two variables present two of the five elements of pentagon fraud, where as the three variables, pressure, rasionalization, competence, do not affect the fraudulent financial reporting. The results of this study have proven that fraudulent financial reporting has a negative effect on firm value.

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