Financial distress, earning management, financial statement fraud and audit quality as a moderating variable: listed companies on the Indonesia Stock Exchange

Abstract

Background: Accounting practices, profit bubbles, information manipulation and deception, and earning management are all examples of fraudulent financial statement cases. Companies create fraudulent financial statements for a variety of reasons, including financial challenges and debt payment delays. Financial fraud is created by five factors: pressure, opportunity, rationalization, capability, and arrogance. Methods: The purpose of this study is to see whether audit quality (AQ) has a moderating effect on the relationship between financial distress (FD) and earning management (EM) to financial statement fraud (FSF) in infrastructure, utility, and transportation companies listed on the Indonesia Stock Exchange during the years 2015 to 2019. The data sources are the www.idx.go.id and the company’s annual reports. Purposive sampling was used to collect data from thirty companies over the course of five years, totaling 150 observations. Moderating regression analysis (MRA) was used in data analysis. Result and conclusions: The hypothesis testing revealed that FD and EM have a significant impact on FSF. AQ is able to moderate the relationship between FD to FSF but unable to moderate the relationship between EM to FSF.

Impact of Whistleblowing System Between the Vousinas Fraud Hexagon Theory and Financial Statement Fraud

“…Users will use the information to consider decisions (Akbar et al, 2021). When the performance presented does not match stakeholders' expectations, fraud will occur on various occasions (Mukhtaruddin et al, 2022). Agustina and Pratomo (2019) outlined how this was done to benefit one of the parties and was categorized as financial statement fraud (FSF).…”

تقييم أثر الضائقة المالية للشركات على جودة التقارير المالية وقابليتها للمقارنة: دليل تطبيقي من البيئة المصرية

“…‫سبيؿ‬ ‫عمى‬ ‫وتشمؿ‬ ‫مختمفة‬ ‫سياقات‬ ‫في‬ ‫نة‬ ‫لممقار‬ ‫القابمية‬ ‫ائد‬ ‫فو‬ ‫اسع‬ ‫و‬ ‫نطاؽ‬ ‫عمى‬ ‫األدبيات‬ ‫ووثقت‬ ‫ال‬ ‫خفض‬ ‫مثاؿ؛‬ ‫تكمفة‬ ‫البيانات‬ ‫ومعالجة‬ ‫جمع‬ (Habib et al, 2020b;Nam & Thompson, 2023) ‫المعمومات‬ ‫تماثؿ‬ ‫عدـ‬ ‫مشكمة‬ ‫مف‬ ‫الحد‬ ‫و‬ ‫الشفافية‬ ‫تحسيف‬ ، (Peterson et al, 2015;Kim & Lim, 2017) ‫التنظيمية‬ ‫المخاطر‬ ‫مستوى‬ ‫خفض‬ ، (Babaei et al, 2021) ‫ة‬ ‫قدر‬ ‫يز‬ ‫تعز‬ ، ‫ة‬ ‫لمفتر‬ ‫األسيـ‬ ‫ائد‬ ‫عو‬ ‫المستقبمية‬ ‫باح‬ ‫األر‬ ‫عكس‬ ‫عمى‬ ‫الحالية‬ (Choi et al, 2019) ‫يف‬ ‫المدير‬ ‫وضبط‬ ، ‫ودقتيا‬ ‫اجعة‬ ‫المر‬ ‫كفاءة‬ ‫وتحسيف‬ ‫السيئة،‬ ‫األخبار‬ ‫حجب‬ ‫مف‬ (Zhang, 2018) ‫تأثير‬ ‫ليا‬ ‫أف‬ ‫كما‬ ، ‫المالية‬ ‫المعمومات‬ ‫وجودة‬ ‫المساىميف‬ ‫حقوؽ‬ ‫قيمة‬ ‫عمى‬ ‫إيجابي‬ (Babaei et al, 2021) . (Habib et al, 2013;Campa, 2015;Ranjbar & Amanollahi, 2018;Li et al, 2020;EL Deeb & Ramadan, 2020;Kurniawati & Panggabean, 2020;Choi et al, 2021, Oktrivina, 2022Viana Jr et al, 2022;Mukhtaruddin et al, 2022;Puspita et al, 2022;Wawo & Habbe, 2023;Sampurno et al, 2023;Wiratno et al (Nam & Thompson, 2023) ‫المشاركيف‬ ‫لدى‬ ‫اليقيف‬ ‫عدـ‬ ‫مف‬ ‫الحد‬ ‫في‬ ‫تيا‬ ‫قدر‬ ‫إلى‬ ‫باإلضافة‬ ، ‫الماؿ‬ ‫أس‬ ‫ر‬ ‫تكمفة‬ ‫وتخفيض‬ ‫الديوف‬ ‫سوؽ‬ ‫في‬ (Kim et al, 2013;Fang et al, 2016) . Kurniawati & Panggabean, 2020;Choi et al, 2021, Oktrivina, 2022Viana Jr et al, 2022;Mukhtaruddin et al, 2022;Puspita et al, 2022;Wawo & Habbe, 2023;Sampurno et al, 2023;Wiratno et al...…”

“…(Habib et al, 2013;Campa, 2015;Ranjbar & Amanollahi, 2018;Li et al, 2020;EL Deeb & Ramadan, 2020;Kurniawati & Panggabean, 2020;Choi et al, 2021, Oktrivina, 2022Viana Jr et al, 2022;Mukhtaruddin et al, 2022;Puspita et al, 2022;Wawo & Habbe, 2023;Sampurno et al, 2023;Wiratno et al (Nam & Thompson, 2023) ‫المشاركيف‬ ‫لدى‬ ‫اليقيف‬ ‫عدـ‬ ‫مف‬ ‫الحد‬ ‫في‬ ‫تيا‬ ‫قدر‬ ‫إلى‬ ‫باإلضافة‬ ، ‫الماؿ‬ ‫أس‬ ‫ر‬ ‫تكمفة‬ ‫وتخفيض‬ ‫الديوف‬ ‫سوؽ‬ ‫في‬ (Kim et al, 2013;Fang et al, 2016) . Kurniawati & Panggabean, 2020;Choi et al, 2021, Oktrivina, 2022Viana Jr et al, 2022;Mukhtaruddin et al, 2022;Puspita et al, 2022;Wawo & Habbe, 2023;Sampurno et al, 2023;Wiratno et al,…”