The Effect of Fraud Pentagon on Financial Statement Fraud Using the Beneish Model With Firm Size As the Moderating Variable

Academia Open ◽  
2021 ◽  
Vol 5 ◽  
Author(s):  
Cintya Devi ◽  
Sarwenda Biduri
Keyword(s):  
Analytical Techniques ◽  
Financial Statements ◽  
Total Sample ◽  
External Pressure ◽  
Company Size ◽  
Financial Statement Fraud ◽  
Inner Model ◽  
A Company ◽  
Monitoring Quality

This study aims to prove the influence of External Pressure, Ineffective Monitoring, Quality of External Auditor, Change in Auditor and Frequency of CEO’s Picture and Company Size as a moderation on Fraud in the Financial Statements of a company. Purposive sampling is used as a technique in determining the sample of this research. The data used is the company's annual report and the population in this study is a company engaged in manufacturing the textile and garment sub-sector for the period 2017-2019 with a total sample of 33. In this study, two analytical techniques were used, namely the Outer Model which used to determine the validity of valid and reliable research and the Inner Model used to verify the existing hypotheses in this study assisted by the SmartPLS program. This study states that the variables of External Pressure and Change in Auditor have an effect on fraudulent acts in the financial statements, while the variables of Ineffective Monitoring, Quality of External Auditors and Frequency of CEO’s Picture have no effect on fraudulent acts in the financial statements. For the moderating variable in this study, Company Size is not able to moderate the relationship between Ineffective Monitoring and Fraud in Financial Statements.

scholarly journals Pengaruh faktor tekanan dan ukuran perusahaan terhadap kecurangan laporan keuangan

2020 ◽  
Vol 1 (4) ◽  
pp. 287-300
Author(s):  
Siswantoro Siswantoro ◽  
Keyword(s):  
Financial Stability ◽  
Financial Statements ◽  
Total Sample ◽  
External Pressure ◽  
Financial Statement ◽  
Company Size ◽  
Analysis Tool ◽  
Financial Statement Fraud ◽  
Fraudulent Financial Statements ◽  
Pressure Factor

Purpose: The purpose’s study was to understand whether the three factors of pressure (financial stability, financial target and external pressure) and company size can influence financial statement fraud. Research methodology: The data analysis method used logistic regression analysis, and the analysis tool is SPSS v21. The population in this study were 40 banking companies listed on the IDX with a research time of 3 years, from 2017-2019. The total sample was 99 samples. Results: One of the three pressure factors, namely financial targets, had a positive and significant effect on fraudulent financial statements, while financial stability and external pressure had no positive and significant effect. Company size is not able to influence financial statement fraud. Limitations: This research used only four independent variables and the pressure factor dimensions of fraud theory to predict that effect on fraudulent financial statements and only examines one object, namely banking companies. The period of the study is relatively short, only three years. Contribution: The results of this study are useful for principals to be more selective in choosing companies to invest in. Keywords: Fraudulent financial statements, Financial stability, Financial target, External pressure, Company size

scholarly journals Audit Lag Criteria Report as a Determination of the Reliability and Quality of Auditor's Report in Indonesia

2020 ◽  
Vol 11 (6) ◽  
pp. 96
Author(s):  
Iskandar Muda ◽  
Karina Valisia Davis ◽  
Erlina Erlina ◽  
Azizul Kholis ◽  
Gusnardi Gusnardi
Keyword(s):  
Sampling Technique ◽  
Financial Statements ◽  
Company Size ◽  
The Public ◽  
Ex Post ◽  
Analysis Technique ◽  
Ex Post Facto ◽  
A Company

This paperaims to knowthe quality indicatorsof the financial statements which consist of profitability, solvency and reputation of Registered Public Accountant (KAP)to the audit lagwith company size as a moderation variable either partially or simultaneously in LQ45 companies. This research is a comparative causal research with ex post facto approach. Purposive sampling technique is used in this research and there are 18 samples collected by this technique from LQ45 in Indonesia Company Issueryear 2010-2016. The data analyzed research is 126. Data analysis technique used Moderated Regression Analysis (MRA) with the Application ofEviews Software. The study concluded thatstudy showed that solvency, reputation of the public accounting firm and company size had a significant effect on Audit Lag, while profitability had no significant effect on Audit Lag. The size of a company able to moderate the effect of independent variablesto the Audit Lag and not haveto moderate the effect of the profitability to the Audit Lag.

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

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

scholarly journals Model Prediksi Pelanggaran Akuntansi

2020 ◽  
Vol 2 (2) ◽  
pp. 149
Author(s):  
Octaviana Dian Ayuningrum ◽  
Tumirin Tumirin
Keyword(s):  
Regression Analysis ◽  
Financial Stability ◽  
Financial Statements ◽  
External Pressure ◽  
Financial Statement ◽  
Analysis Method ◽  
Financial Statement Fraud ◽  
Additional Information ◽  
Financial Need ◽  
A Company

Financial statements are a reflection of the condition of a company in a certain period. Financial statements are said to be good if the report can provide transparent information and explanations about the results of operations or activities based on predetermined rules. However, there are still many deviations in accounting (accounting irregularities) by companies to maintain and increase the value of the company in attracting investors to keep investing their funds for the survival of the company. These actions included fraud in intentional financial statements. This can be detrimental to users of financial statements in making decisions. This study aims to predict of financial statement fraud with financial stability, personal financial need, ineffective monitoring, external pressure. In this study 53 samples were selected based on the purposive sampling method.This study uses a logistic regression analysis method. The results show that: Financial Stability and personal financial need can predict financial statement fraud. The results of this study are expected to provide knowledge and contribution to the development of the science of triangle fraud. And provide additional information about the factors that can affect a company fraudulent in the financial statements.  

scholarly journals Pengaruh Kompetensi Sumber Daya Manusia dan Tekanan Eksternal Terhadap Kualitas Laporan Keuangan Pemerintah Daerah (Studi Kasus Pada Dinas Pendapatan Pengelola Keuangan dan Aset Daerah Kota Sawahlunto)

1970 ◽  
Vol 12 (2) ◽  
pp. 24-50
Author(s):  
Rinka Merantika ◽  
Randy Heriyanto
Keyword(s):  
Asset Management ◽  
Structural Model ◽  
Financial Statements ◽  
Measurement Model ◽  
External Pressure ◽  
Regional Finance ◽  
Inner Model ◽  
Questionnaire Surveys ◽  
Positive Effect

This study aims to determine the effect of human resource competencies and external pressure on the quality of financial statements. Research uses a quantitative approach. Data collection of this study uses questionnaire surveys. Questionnaires were submitted to 52 Revenue Service Officers of Regional Finance and Asset Management (DPPKAD) of Sawahlunto City who were Civil Servants (PNS), as many as 48 questionnaires (92%) were returned fully and could be processed. The collected power is processed using a smart PLS 2.0 program. Data analysis using the measurement model (outer model) and structural model (inner model), first carried out the Successive Interval Method (MSI). The results showed that the competence of human resources and external pressure had a positive effect on the quality of financial statements. Suggestions for further research are expected to expand the object of research and add other variables not included in this study.

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

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.

RASIO FUNDAMENTAL TERHADAP PERTUMBUHAN LABA: VARIABEL MODERASI UKURAN PERUSAHAAN (Fundamental ratio on income growth: Variables of company size moderation)

2021 ◽  
Vol 5 (1) ◽  
pp. 261
Author(s):  
Andri Gunawan Putra As'ari ◽  
Tri Kartika Pertiwi
Keyword(s):  
Financial Analysis ◽  
Stock Exchange ◽  
Research Result ◽  
Sampling Technique ◽  
Financial Statements ◽  
Company Size ◽  
Analysis Technique ◽  
Solvency Ratio ◽  
A Company ◽  
Profit Growth

To find out the performance of a company it is necessary to have a financial analysis, where in analyzing the financial statements will get a view of the good and bad financial performance. For this reason, this study aims to analyze the effect of the Liquidity Ratio, Solvency Ratio, Profitability Ratio, and Activity Ratio on profit growth with company size as a moderating variable. The population in this study was all trade retail companies that listed in Indonesia Stock Exchange in the period 2015-2018. The research samples was determined by using purposive sampling technique, so that obtained 21 trade retail companies that quality as the sample. The analysis technique used is moderation regression analysis. Based on the research result showed that Solvability, Profitability and Activity ratios has an effect on profit growth and company size is a moderation variabel. Liquidity Ratio has no effect on profit growth and company size not a moderating variable between Liquidity on profit growth.

scholarly journals An Examination of the Effects of Change in Committee Chair on Audit Quality

2017 ◽  
Vol 6 (4) ◽  
pp. 52
Author(s):  
Izhar Haq ◽  
Teresa Lang ◽  
Hongkang Xu
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Committee Chair ◽  
The Absolute ◽  
Predicted Values ◽  
The Relationship ◽  
A Company

This study uses GMI Ratings directorship data from 2008 to 2013 along with the associated financial data to examine the relationship between audit committee chair change with the absolute discretionary accruals in the financial statements of the reporting companies.  Our results suggest that audit committee chair change is positively associated with the absolute discretionary accruals.  Specifically, absolute discretionary accruals are significantly higher when there is a change in the audit committee chair.  These results are consistent with prior research that deviations from the predicted values of accruals is an indicator of “poor” audit quality.  An additional finding of this paper is that a person younger than 60 is more likely to be a new audit committee chair when there is a change and therefore will have less experience and contacts than the outgoing chair. An important implication of these results is that audit committee chair change can have a significant impact on the quality of the financial statements of a company as well as on the audit quality.

scholarly journals Peran Fraud Triangle dalam Mendeteksi Financial Statement Fraud di Perusahaan Perbankan ASEAN

2021 ◽  
Vol 31 (3) ◽  
pp. 713
Author(s):  
Yuliana Pertiwi Yuwono ◽  
Maria Assumpta Evi Marlina
Keyword(s):  
Earnings Management ◽  
Financial Stability ◽  
Sampling Technique ◽  
Total Sample ◽  
External Pressure ◽  
Commercial Banking ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Triangle Theory

This research aims to determine the effect of fraud triangle theory toward Financial statement fraud. Financial statement fraud is proxied by earnings management.  Population in this study is non-Islamic commercial banking companies listed on SGX, MYX, SET, PSE and IDX. The sampling technique used purposive sampling. The total sample in the study was 66 non-Islamic commercial banking companies. The data analysis method used is multiple linear regression. The research results proved that Financial targets and change of auditors had a positive effect on Financial statement fraud while external pressure had a negative effect on Financial statement fraud. Financial stability and ineffective monitoring had no effect on Financial statement fraud. This research can be used as a reference by investors, the public, government and users of other financial statement information in order to detect Financial statement fraud through the fraud triangle theory. Keywords: Financial statement fraud; Earnings Management; Fraud Triangle.

Qualitative Financial Statement Disclosures: Legal and Ethical Considerations

2004 ◽  
Vol 14 (3) ◽  
pp. 433-451 ◽  
Author(s):  
William E. Shafer
Keyword(s):  
Empirical Test ◽  
Financial Statements ◽  
Financial Statement ◽  
Corporate Management ◽  
Ethical Considerations ◽  
Corporate Executives ◽  
Illegal Acts ◽  
The Impact ◽  
A Company

Abstract:There is a long-running debate among legal scholars regarding the propriety and enforceability of SEC attempts to mandate disclosures of antisocial or illegal corporate activities that do not materially impact a company’s financial statements. This debate was recently revived by the issuance of SEC Staff Accounting Bulletin 99, Materiality in Financial Statements (SEC 1999), which suggests that quantitatively immaterial information relating to unlawful transactions or regulatory non-compliance should be considered for disclosure. This issue has important implications for the accounting profession, although it has generally been ignored in the accounting literature. This paper reviews legal and ethical considerations raised by the issue of qualitative disclosures, and also presents the results of a preliminary empirical test of the impact of such disclosures on financial statement users’ judgments. The results of this study indicate that investors consider the nondisclosure of immaterial illegal acts to be unethical, and reject suggestions that such information lacks moral intensity. The results also suggest that immaterial illegal acts have a significant effect on investors’ perceptions of the quality of corporate management and the likelihood of investment in a company. This effect was more pronounced when the illegal act was combined with self-dealing on the part of corporate executives.

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