Fraudulence Financial Statements Analysis using Pentagon Fraud Approach

Abstract

This study aims to examine the influence of variables, namely pressure, opportunity, rationalization, competence, and arrogance on fraudulent financial statements of companies listed in Indonesia Stock Exchange. The subject of the study is the food and beverage manufacturing firms. The period of investigation is the year 2015 – 2017. This study used purposive sampling technique. In total, there are 36 foods and beverage manufacturing firms involved in this study. The data was generated from the firm’s annual report using a content analysis approach. Panel data of 36 foods and beverage for three years (2015 – 2017) was used for analyzing. The analysis model employed in this study is multiple regression. The results indicate that variable namely, pressure, opportunity, rationalization, competence, and arrogance, simultaneously do not affect fraudulence financial statement. Partially, only competence variable significantly affect fraudulence financial statement. It implies that the pentagon theory of fraud is not applicable to understand fraudulence financial statement in the context listed manufacturing firms of food and beverage in Indonesia.

Analisis Pengaruh Fraud Pentagon Theory Terhadap Fraudulent Financial Reporting Pada Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2014 – 2019

“…Semakin sering terjadi pergantian dewan direksi akan berpengaruh signifikan terhadap fraudulent financial reporting (Triyanto, 2019). Pergantian dewan direksi dilakukan untuk meningkatkan kinerja perusahaan pada periode sebelumnya.…”

Detecting Fraudulent Financial Reporting Using Fraud Score Model and Fraud Pentagon Theory : Empirical Study of Companies Listed in the LQ 45 Index

“…Prediction of positive influence refers to the results of Saputra & Kesumanignrum (2015) and Triyanto (2019), which states that the Change of directors has a positive and significant effect. Change of directors is one of the company's efforts to eliminate directors who are considered aware of fraud by the company, and changes in directors are considered to reduce the effectiveness of company performance due to cultural changes implemented by new directors that require a long time to adapt.…”

“…The arrogance of a CEO can be known through the number of CEO photos posted on the financial statements because a CEO will tend to display or show off the position he has (Triyanto, 2019). The results showed that partially the frequent number of CEO's pictures (CEOPIC) did not affect fraudulent financial reporting.…”

Survei Kecurangan Akademik Pada Mahasiswa Program Studi Akuntansi

“…Peneliti selanjutnya dapat mengambil konsep dari Fraud Pentagon ketika teori tersebut merupakan teori terbaru dalam mendeteksi motivasi untuk melakukan fraud. Penelitian ini selanjutnya dapat mengambil referensi dari jurnal dengan judul Fraudulence Financial Statements Analysis using Pentagon Fraud Approach oleh Triyanto (2019). (3) Adapun mahasiswa yang…”