Analysis Factor Triggers Fraud And Corporate Governance On Indications of Fraudulent Financial Reporting Using the Pentagon Fraud Theory Approach

Sri Astuti, Marita Marita, Sucahyo Heriningsih

Sari


This study examines the correlation between fraud triggering factors using the Pentagon fraud theory approach and the role of corporate governance on the indication that companies conduct financial statement fraud. The trigger factors for fraud in the Pentagon fraud theory are pressure, opportunity, rationalization, competence and arrogance. The fraud studied in this study is financial report fraud. The financial statements are prepared and accounted for by management. The population in this study are all banking companies listed on the Stock Exchange in 2015-2018. Observation data consisting of 92 companies. The analysis tool used is correlation analysis. Based on the results of testing, the variable that correlates significantly with the indication of the company committing fraud is pressure and corporate governance. Financial statements are a measure of management's performance, so there is pressure from management to deliver their performance information properly. Good corporate governance (GCG) is one of the pillars of the market economic system, closely related to trust in both the companies that implement it and the business climate in a country. Governance mechanisms describe the organizational culture that builds employee ethics and motivates them to uphold ethical values. Inefficiencies in corporate governance will raise the risk of financial report fraud.

Kata Kunci


pentagon fraud; Good corporate governance (GCG)

Teks Lengkap:

PDF PDF (English)

Referensi


Amiruddin and Sundari, 2012, Fraud: How to detect it ?, Unhas repository.

Aprilia, 2017, Analysis of the Effect of the Pentagon Fraud on Fraudulent Financial Statements Using the Beneish Model for Companies that Implement the Asean Corporate Governance Scorecard. Journal of Accounting Research, 6 , 1, 96-126.

Chyntia Tessa and Puji Harto, 2016, Fraudulent Financial Reporting : Testing the Pentagon Fraud Theory in the Financial and Banking Sector in Indonesia , XIX National Accounting Symposium, Lampung .

Crowe Horwarth, 2012, "The Mind Behind the Crime Fraudsters: Key Behavioral and Environmental Element".

Lie Liana, 2009, The Use of MRA with SPSS to Test the Effect of Moderating Variables on the Relationship between Independent Variables and Dependent Variables , DINAMIC Information Technology Journal Volume XIV, No.2, pp. 90-97.

Maria Ulfah, Elva Nuraina and Anggita Lasting Wijaya, 2017, The Effect of Pentagon Fraud in Detecting Financial Reporting Fraudulent (Empirical Study on Banking in Indonesia Registered on the Indonesia Stock Exchange, Accounting Education Scientific Forum, Vol 5 No 1 October 2017 Page 399-418.

Skousen, CJ, KR Smith, and CJ Wright, 2009, "Detecting and Predecting Financial Statement Fraud: The Effectiveness of the Fraud Triangle and SAS No. 99 . " Corporate Governance and Firm Performance Advances in Financial Economis , Vol. 13, h. 53-81.

Suhardjanto Djoko and Dewi Aryane, 2011, Disclosure of Financial Risk and Corporate Governance: Empirical Study of Indonesian Banking, Journal of Finance and Banking Vol. 15 (1): p. 105-118.

Tugiman Hiro, 2015, Development and Claims of the Role of Internal Auditors At present, the National Congress of Accountants XII and the Anniversary of the Indonesian Institute of Accountants.

Wolfe, David T and Dana R. Hermanson, 2004, "The Fraud Diamond: Considering the Four Elements of Fraud". CPA Journal . 74.12: 38-42.




DOI: https://doi.org/10.26533/vol14iss1pp48%20-%2054

Refbacks

  • Saat ini tidak ada refbacks.


Creative Commons License
Bekerja dibawah lisensi Creative Commons Attribution 3.0 License

Diindeks oleh:

             

 

 

Flag Counter

 

View My Stats