The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach

Siska Apriliana, Linda Agustina

Abstract


The purpose of this study was to analyze the prediction of fraudulent financial reporting with the perspective of pentagon fraud. Pentagon fraud theory is the development of the theories of fraud triangle and fraud diamond. The Pentagon fraud theory adds an element of arrogance in addition to the other four existing elements namely pressure, opportunity, rationalization, and competence or capacity. The population in this study were 157 manufacturing companies listed on the Indonesia Stock Exchange (IDX) period 2013-2015. The samples of 46 companies were obtained by using purposive sampling technique, so the analysis unit was 138. Data was analyzed by using descriptive statistical analysis and logistic regression analysis. The test result showed that financial stability, the quality of external auditor, and the number of CEO’s photos in the annual reports of the companies had a positive effect on the prediction of fraudulent financial reporting, while financial targets, liquidity, institutional ownership, monitoring effectiveness, replacement of external auditors, and changes of corporate directors had no significant effect on the prediction of fraudulent financial reporting. The conclusion of this study indicates that unstable financial condition, the quality of corporate audit and the level of CEO’s arrogance can influence the occurrence of fraudulent financial reporting.


Full Text:

PDF

References


Abayomi, S. O. (2016). Personal Ethics and Fraudster Motivation: The Missing Link in Fraud Triangle and Fraud Diamond Theories. International Journal of Academic Research in Business and Social Sciences, 6(2), 159–165.

Annisya, M., & Asmaranti, Y. (2016). Pendeteksian Kecurang Laporan Keuangan Menggunakan Fraud Diamond. Jurnal Bisnis Dan Ekonomi, 23(1), 72–89.

Ardiyani, S., & Utaminingsih, N. S. (2015). Analisis Determinan Financial Statement melalui Pendekatan Fraud Triangle. Accounting Analysis Journal, 4(1), 1–10.

Beneish, M. D., Lee, C. M. C., & Nichols, D. C. (2012). Fraud Detection and Expected Returns. SSRN Working Paper.

Deangelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199.

Francis, J. R., Michas, P. N., & Yu, M. D. (2013). Office size of Big 4 auditors and client restatements. Contemporary Accounting Research, 30(4), 1626–1661.

Ghosh, A., Marra, A., & Moon, D. (2010). Corporate Boards, Audit Committees, and Earnings Management: Pre- and Post-SOX Evidence. Journal of Business Finance and Accounting, 37(9–10), 1145–1176.

Hanifa, S. I., & Laksito, H. (2015). Pengaruh Fraud Indicators Terhadap Fraudulent Financial Statement: Studi Empiris Pada Perusahaan Yang Listed di Bursa Efek Indonesia (BEI) Tahun 2008-2013. Diponegoro Journal of Accounting, 4(4), 1–15.

Harahap, S. S. (2013). Analisis Kritis Atas Laporan Keuangan. Jakarta: Rajawali Pers.

Iqbal, M., & Murtanto. (2016). Analisa Pengaruh Faktor-Faktor Fraud Triangle terhadap Kecurangan Laporan Keuangan pada Perusahaan Proferty dan Real Estate yang Terdaftar di Bursa Efek Indonesia. In Seminar Nasional Cendikiawan 2016 (p. 17.2-17.20).

Kirkos, E., Spathis, C., & Manolopoulos, Y. (2007). Data mining techniques for the detection of fraudulent financial statements. Expert Systems with Applications, 32(4), 995–1003.

Kreutzfeldt, R. W., & Wallace, W. A. (1986). Error characteristics in audit populations-their profile and relationship to environmental-factors. Auditing-A Journal of Practice & Theory, 6(1), 20–43.

Kusumawardhani, P. (2013). Deteksi Financial Statement Fraud dengan Analisis Fraud Triangle pada Perusahaan Perbankan yang Terdaftar di BEI. Jurnal Akuntansi Unesa, 1(3), 1–16.

Lou, Y., & Wang, M. (2009). Fraud Risk Factor Of The Fraud Triangle Assessing The Likelihood Of Fraudulent Financial Reporting. Journal of Business & Economics Research, 7(2), 61–78.

Marks, J. (2012). The Mind Behind The Fraudsters Crime : Key Behavioral and Environmental Elements Discussion Leader: Crowe Horwarth. Crowe Horwarth.

Mohamed, Y. K., Khair, A. H. A., & Simon, J. (2015). Fraudulent financial reporting: An application of fraud models to malaysian public listed companies. The Macrotheme Review, 4(3), 126–145.

Nugraha, N. D. A., & Henny, D. (2015). Pendeteksian laporan keuangan melalui faktor risiko, tekanan dan peluang (berdasarkan press release OJK 2008–2012). E-Journal Akuntansi Trisakti, 2(1), 29–48.

Perols, J. L., & Lougee, B. A. (2011). The relation between earnings management and financial statement fraud. Advances in Accounting, 27(1), 39–53.

Prajanto, A., & Pratiwi, R. D. (2017). The Impact of Corporate Cultures and Financial Ratios on The Fraudulent Financial Reporting. Jurnal Dinamika Akuntansi, 8(1), 39–52.

Puspitasari, A. S. (2014). Pengaruh Proporsi Dewan Komisaris Independen, Kepemilikan Manajerial dan Kepemilikan Institusional terhadap Pemberian Opini Audit Going Concern (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar dI Bursa Efek Indonesia Tahun 2010–2012). Disertasi Universitas Atma Jaya Yogyakarta.

Raenaldi, C. (2015). Pengaruh ukuran kantor akuntan publik, pengungkapan auditor lain dalam laporan auditor, dan ukuran komite audit terhadap misstatement dalam laporan keuangan auditan: studi empiris pada perusahaan non-keuangan yang terdaftar di bursa efek Indonesia periode. Disertasi Universitas Islam Negeri Syarif Hidayatullah Jakarta.

Rahman, F. (2011). Peran Manajemen dan Tanggung Jawab Auditor dalam Mendeteksi Kecurangan Laporan Keuangan. Jurnal Akuntansi, 7(53), 1816–1822.

Rahmanti, M. M., & Daljono, D. (2013). Pendeteksian Kecurangan Laporan Keuangan Melalui Faktor Risiko Tekanan dan Peluang (Studi Kasus pada Perusahaan yang Mendapat Sanksi dari Bapepam Periode 2002–2006). Disertasi Universitas Diponegoro.

Ruankaew, T. (2016). Beyond the Fraud Diamond. International Journal of Business Management & Economic Research, 7(1), 474–476.

Sambera, G. F., & Meiranto, W. (2013). Analisis Pengaruh Karakteristik Dewan Komisaris dan Karakteristik Perusahaan Terhadap Pembentukan Komite Manajemen Risiko (Studi Empiris pada Perusahaan Finansial Non Perbankan yang terdaftar di BEI Tahun 2009-2011). Diponegoro Journal of Accounting, 2(3), 1–14.

Saputra, R. A. (2016). Pengaruh Fraud Indicators terhadap Fraudulent Financial Statement (Studi Empiris pada Perusahaan yang Listed di BEI Tahun 2013-2015). FE UMY.

Sihombing, K. S., & Rahardjo, S. N. (2014). Analisis Fraud Diamond dalam Mendeteksi Financial Statement Fraud: Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) Tahun 2010-2012. Diponegoro Journal of Accounting, 3(2), 1–12.

Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99. In Corporate Governance and Firm Performance (pp. 53–81). Emerald Group Publishing Limited.

Tessa, C., & Harto, P. (2016). Fraudulent Financial Reporting: Pengujian Teori Fraud Pentagon Pada Sektor Keuangan Dan Perbankan Di Indonesia. Simposium Nasional Akuntansi, 1–21.

Tiffani & Marfuah. (2015). Deteksi Financial Statement Fraud dengan Analisis Fraud Triangle pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia LAILA. Simposium Nasioanal Akuntansi 18 Universitas Sumatera Utara, Medan.

Wilopo. (2006). Analisis Faktor-faktor yang Berpengaruh Terhadap Kecenderungan Kecurangan Akuntansi: Studi pada Perusahaan Publik dan Badan Usaha Milik Negara di Indonesia. Jurnal Riset Dan Akuntansi Indonesia, 9(3), 346–366.

Zhizhong, H., Juan, Z., Yanzhi, S., & Wenli, X. (2011). Does corporate governance affect restatement of financial reporting? Evidence from China. Nankai Business Review International, 2(3), 289–302.




DOI: https://doi.org/10.15294/jda.v7i1.4036

Refbacks

  • There are currently no refbacks.




Creative Commons License
Jurnal Dinamika Akuntansi is licensed under a Creative Commons Attribution 4.0 International License