Fraud Pentagon Analysis in Assessing the Likelihood of Fraudulent Financial Statement (Study on Manufacturing Firms Listed in Bursa Efek Indonesia Period 2013-2016)

Husmawati , Pera and Septriani, Yossi and Rosita, Irda and Handayani, Desi (2017) Fraud Pentagon Analysis in Assessing the Likelihood of Fraudulent Financial Statement (Study on Manufacturing Firms Listed in Bursa Efek Indonesia Period 2013-2016). International Conference of Applied Science on Engineering, Business, Linguistics and Information Technology . pp. 45-51. ISSN 2598-2532

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Abstract

This research aimed to analyze the likelihood of fraudulent financial statement explained by earning management using fraud pentagon theory. Fraud risk factors are explained using variables financial target, financial stability, external pressure, ineffective monitoring, nature of industry, changes in auditor, rationalization, changes in board of directors’s member, and number of CEO’s picture in detecting fraudulent financial statement proxied by earning management. Samples selected are 86 manufacturing firms listed in Bursa Efek Indonesia, for period 2013-2016. Data were collected from firms’ annual report and financial statement from idx directory. Data analysis using multiple regression methods was run using SPSS v.21. The results shows that financial stability calculated by changes in total asset ratio, external pressure calculated by leverage ratio, change in auditor and changes in board of committee’s member has an influence in explaining the likelihood of fraudulent financial statement through earning management, while financial target calculated by Return On Asset, nature of industry explained by changes in receivables ratio, rationalization explained by TATA, and number of CEO’s picture has no significant influence in assessing the likelihood of fraudulent financial statement.

Item Type:Article
Subjects:C Social Sciences > CB Economic Theory
C Social Sciences > CF Commerce > CF1 Accounting
Divisions:Luar PNP > Journal, Proceeding
ID Code:740
Deposited By:Rahmat Hidayat
Deposited On:23 Nov 2017 11:34
Last Modified:23 Nov 2017 14:38

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