Fraud pentagon elements in detecting fraudulent financial statement
Keywords:
arrogance, competence, financial statement fraud, fraud pentagon, opportunity, pressure, rationalizationAbstract
Public companies that are supposed to provide transparent and accountable information to outside parties, sometimes still hide facts and information that have a bad influence on their company's reputation. Public companies in Indonesia in carrying out their business activities have been specifically regulated and supervised by an independent institution, called the Financial Services Authority (OJK). OJK itself has issued several regulations on the presentation of financial statements, such as regulation no. IX.E.2 and rule number VIII.G. This study aims to detect financial statement fraud with the fraud pentagon model. Researchers use elements of financial stability, external pressure, personal financial need, financial target, nature of industry, ineffective monitoring, quality of external auditor, change in auditor, change of directors and frequent number of CEO's picture as independent variables on the ability to detect financial statement fraud as dependent variables. This study uses a sample of fraud companies that are subject to sanctions and cases of the Financial Services Authority (OJK) related to OJK regulations VIII G. 7 and IX. E. 2 in 2015-2019. The company sample consists of 31 fraudulent companies and 31 non-fraud companies.
Downloads
References
Agusputri, H. (2019). Faktor-faktor yang berpengaruh terhadap fraudulent financial reporting dengan menggunakan analisis fraud pentagon pada perusahaan sektor industri manufaktur yang terdaftar di bursa efek Indonesia (BEI) periode 2015-2017. SKRIPSI-2019.
Agustina, R. D., & Pratomo, D. (2019). Pengaruh fraud pentagon dalam mendeteksi kecurangan pelaporan keuangan. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 3(1), 44-62.
Amarakamini, N. P., & Suryani, E. (2019). Pengaruh Fraud Pentagon Terhadap Fraudulent Financial Statement Pada Perusahaan Manufaktur Yang terdaftar di Bursa Efek Indonesia (BEI) Tahun 2016 dan 2017. Jurnal Akuntansi (Media Riset Akuntansi & Keuangan), 7(2).
Aprilia, A. (2017). Analisis pengaruh fraud pentagon terhadap kecurangan laporan keuangan menggunakan beneish model pada perusahaan yang menerapkan asean corporate governance scorecard. Jurnal ASET (Akuntansi Riset), 9(1), 101-132.
Apriliana, S., & Agustina, L. (2017). The analysis of fraudulent financial reporting determinant through fraud pentagon approach. Jurnal Dinamika Akuntansi, 9(2), 154-165.
Ardichvili, A., Cardozo, R., & Ray, S. (2003). A theory of entrepreneurial opportunity identification and development. Journal of Business venturing, 18(1), 105-123. https://doi.org/10.1016/S0883-9026(01)00068-4
Arief, A. S., Mulyadi, M., & Liriwati, F. Y. (2021). The sustainable business strategy during the new normal era: lesson for Indonesian academic. International Research Journal of Management, IT and Social Sciences, 8(3), 274-285. https://doi.org/10.21744/irjmis.v8n3.1667
Avortri, C., & Agbanyo, R. (2020). Determinants of management fraud in the banking sector of Ghana: the perspective of the diamond fraud theory. Journal of Financial Crime.
Bawekes, H. F., Simanjuntak, A. M., & Daat, S. C. (2018). Pengujian teori fraud pentagon terhadap fraudulent financial reporting (Studi empiris pada perusahaan yang terdaftar di Bursa Efek Indonesia Tahun 2011-2015). Jurnal Akuntansi dan Keuangan Daerah, 13(1).
Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5), 24-36.
Crowe, H. (2010). IIA Practice Guide: Fraud and Internal Audit. United States Of America.
Crowe, S., Cresswell, K., Robertson, A., Huby, G., Avery, A., & Sheikh, A. (2011). The case study approach. BMC medical research methodology, 11(1), 1-9.
Daljono, M. (2013). Pendeteksian Kecurangan Laporan Keuangan Melalui Faktor Risiko Tekanan Dan Peluang (Studi Kasus Pada Perusahaan Yang Mendapat Sanksi Dari Bapepam Periode 2002-2006). Diponegoro journal of accounting, 2(2), 1-12.
DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of accounting and economics, 3(3), 183-199.
Dorris, B., Examiners, F., & Dorris, B. (2020). Report to the Nations: Global Study on Occupational Fraud and Abuse. Association of Certified Fraud Examiners. Diunduh dari https://www. acfe. com/report-to-the-nations.
Faidah, F., & Suwarti, T. (2018). Deteksi Financial Statement Fraud dengan Analisis Fraud Pentagon pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode Tahun 2015–2017. Dinamika Akuntansi Keuangan dan Perbankan, 7(2).
Fiske, S. T., Cuddy, A. J., & Glick, P. (2007). Universal dimensions of social cognition: Warmth and competence. Trends in cognitive sciences, 11(2), 77-83. https://doi.org/10.1016/j.tics.2006.11.005
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), 411-425.
Haqq, A. P. N. A., & Budiwitjaksono, G. S. (2019). Fraud Pentagon for Detecting Financial Statement Fraud. Journal of Economics, Business, and Accountancy Ventura, 22(3), 319-332.
Head, K., & Ries, J. (1999). Rationalization effects of tariff reductions. Journal of International economics, 47(2), 295-320. https://doi.org/10.1016/S0022-1996(98)00019-1
Horwath, J., & Lees, J. (2010). Assessing the influence of religious beliefs and practices on parenting capacity: The challenges for social work practitioners. British Journal of Social Work, 40(1), 82-99.
Imahori, T. T., & Lanigan, M. L. (1989). Relational model of intercultural communication competence. International Journal of Intercultural Relations, 13(3), 269-286. https://doi.org/10.1016/0147-1767(89)90013-8
Inayanti, S. N., & Sukirman, S. (2016). The Effect of Factors in Fraud Diamond Perspective on Fraudulent Financial Reporting. Accounting Analysis Journal, 5(3), 155-162.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Kasmir. (2013). Analisis Laporan Keuangan Edisi 1 Cetakan Ke 6. Jakarta: Rajawali Pers.
Khoirunnisa, A., Rahmawaty, A., & Yasin, Y. (2020). Fraud pentagon theory dalam Mendeteksi Fraudulent Financial Reporting pada Perusahaan yang Terdaftar di Jakarta Islamic Index 70 (JII 70) Tahun 2018. BISNIS: Jurnal Bisnis Dan Manajemen Islam, 8(1), 97-110.
Kliuchnikova, O. V., & Pobegaylov, O. A. (2016). Rationalization of strategic management principles as a tool to improve a construction company services. Procedia Engineering, 150, 2168-2172. https://doi.org/10.1016/j.proeng.2016.07.259
Kurnia, A., Suntoro, I., & Yanzi, H. (2017). Implementasi Permendikbud No. 23 Tahun 2015 Tentang Penumbuhan Budi Pekerti. Jurnal Kultur Demokrasi, 5(1).
Mafiana, A., Lindrianasari, L., & Yuztitya, A. (2016). Pendeteksian Kecurang Laporan Keuangan Menggunakan Fraud Diamond. urnal Bisnis dan Ekonomi, 231, 72-89.
Mohamed Yusof, K. (2016). Fraudulent financial reporting: An application of fraud models to malaysian public listed companies (Doctoral dissertation, University of Hull).
Murtanto, M., & Sandra, D. (2019). Pengaruh Fraud Diamond Dalam Mendeteksi Tingkat Accounting Irregularities Dengan Komite Audit Sebagai Variabel Moderating. Media Riset Akuntansi, Auditing & Informasi, 19(2), 209-226.
Nala, M., & Ravichandran, S. (2021). Voices for egalitarian society. Linguistics and Culture Review, 6(S2), 222-228. https://doi.org/10.21744/lingcure.v6nS2.2030
Novitasari, A. R., & Chariri, A. (2019). Analisis Faktor-Faktor yang Mempengaruhi Financial Statement Fraud dalam Perspektif Fraud Pentagon. Diponegoro Journal of Accounting, 7(4).
Novitasari, C., Ramli, M., & Karyanto, P. (2018). Facts and proofs diagnostic test and structural communication grid test on the topic of bacteria: A quantitative analysis. JPBI (Jurnal Pendidikan Biologi Indonesia), 4(3), 195-202.
Novitasari, I., & Ulum, I. (2018). Intellectual capital disclosure of Indonesian universities: a five ways numerical coding system. International Journal of Economics and Research, 9(6), 01-09.
Priantara, D. (2013). Fraud auditing & investigation. Jakarta: Mitra Wacana Media.
Ravisankar, P., Ravi, V., Rao, G. R., & Bose, I. (2011). Detection of financial statement fraud and feature selection using data mining techniques. Decision support systems, 50(2), 491-500. https://doi.org/10.1016/j.dss.2010.11.006
Ruvio, A. A., & Shoham, A. (2016). Consumer arrogance: Scale development and validation. Journal of Business Research, 69(10), 3989-3997. https://doi.org/10.1016/j.jbusres.2016.06.004
Sarason, Y., Dean, T., & Dillard, J. F. (2006). Entrepreneurship as the nexus of individual and opportunity: A structuration view. Journal of business venturing, 21(3), 286-305. https://doi.org/10.1016/j.jbusvent.2005.02.007
Sawaka K., I. G. N. H., & Ramantha, I. W. (2020). Fraud pentagon theory in detecting financial perception of financial reporting with good corporate governance as moderator variable. International Research Journal of Management, IT and Social Sciences, 7(1), 84-94. https://doi.org/10.21744/irjmis.v7n1.824
Senyuz, A., & Hasford, J. (2022). The allure of arrogance: How relationship formation motives enhance consumer preferences for arrogant communications. Journal of Business Research, 139, 106-120. https://doi.org/10.1016/j.jbusres.2021.09.033
Septriana, A. I. (2018). Hubungan Antara Luas Penguasaan Tanah Dan Nilai Anak Dengan Aspirasi Pendidikan Anak (Studi Desa Cempaka Kecamatan Batanghari Nuban Kabupaten Lampung Timur).
Septriani, Y., & Handayani, D. (2018). Mendeteksi Kecurangan Laporan Keuangan dengan Analisis Fraud Pentagon. Jurnal Akuntansi Keuangan Dan Bisnis, 11(1), 11-23.
Siddiq, F. R., Achyani, F., & Zulfikar, Z. (2017). Fraud Pentagon dalam Mendeteksi Financial Statement Fraud.
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. Emerald Group Publishing Limited.
Summers, S. L., & Sweeney, J. T. (1998). Fraudulently misstated financial statements and insider trading: An empirical analysis. Accounting Review, 131-146.
Suwija, N., Suarta, M., Suparsa, N., Alit Geria, A.A.G., Suryasa, W. (2019). Balinese speech system towards speaker social behavior. Humanities & Social Sciences Reviews, 7(5), 32-40. https://doi.org/10.18510/hssr.2019.754
Talosa, A. D., Javier, B. S., & Dirain, E. L. (2021). The flexible-learning journey: phenomenological investigation of self-efficacy influencing factors among higher education students. Linguistics and Culture Review, 5(S3), 422-434. https://doi.org/10.21744/lingcure.v5nS3.1590
Ulfah, M., Nuraina, E., & Wijaya, A. L. (2017, October). Pengaruh Fraud Pentagon dalam Mendeteksi Fraudulent Financial Reporting (Studi Empiris pada Perbankan di Indonesia Yang Terdaftar di Bei. In FIPA: Forum Ilmiah Pendidikan Akuntansi (Vol. 5, No. 1).
Wispandono, R. M. (2010). Analisis Permintaan Sumber Daya Manusia Pada Perguruan Tinggi Swasta Di Propinsi Lampung. Neo-Bis, 4(1), 115-125.
Wong, Y. Z. (2021). Written, scratch and spelling languages. Macrolinguistics and Microlinguistics, 2(1), 51–65. Retrieved from https://mami.nyc/index.php/journal/article/view/15
Yesiariani, M., & Rahayu, I. (2016). analisis fraud diamond dalam mendeteksi financial statement fraud (studi empiris pada perusahaan lq-45 yang terdaftar di bursa efek indonesia tahun 2010-2014). Simposium Nasional Akuntansi XIX, Lampung.
Yulianti, S. R. P., Widowati, Y. S., & Prapti, L. (2019). Influence of fraud pentagon toward fraudulent financial reporting in Indonesia an empirical study on financial sector listed in Indonesian stock exchange. International Journal of Scientific and Technology Research, 8(8), 237-242.
Zhou, W., & Kapoor, G. (2011). Detecting evolutionary financial statement fraud. Decision support systems, 50(3), 570-575. https://doi.org/10.1016/j.dss.2010.08.007
Published
How to Cite
Issue
Section
Copyright (c) 2022 Linguistics and Culture Review
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
