The Effect of Hexagon Fraud on the Potential Fraud Financial Statements with the Audit Committee as a Moderating Variable

Abstract

This study aims to obtain empirical evidence of the influence of the six elements of fraud hexagon theory on potential financial statement fraud by involving the audit committee which acts as a moderating variable in the financial statements of state- owned companies listed on the Indonesia Stock Exchange in 2016-2020. Potential financial statement fraud is measured using the f-score model. The research sample was obtained by the purposive sampling technique. Data analysis methods and techniques include descriptive statistics, evaluation of the SEM-PLS model, and hypothesis testing. The results show that financial pressure has a positive effect on potential financial statement fraud, effective monitoring has a negative effect on potential financial statement fraud, while related party transactions, CEO education, CEO narcissism, and political connection do not affect potential financial statement fraud. The role of the audit committee as a moderating variable is only able to weaken the relationship between financial pressure and potential financial statement fraud.

دراسة تحليلية مقارنة لنماذج كشف الغش بالقوائم المالية فى بيئة البيانات الضخمة

“…Artificial Intelligence ( (Sharma et al, 2016;Flood et al, 2016; . Sahla& Ardianto, 2023;Meidijati, 2023;ani et al, 2022;Andri ( Achmad et al, 2023;Reskino, 2023;Adhania et Rahma& Sari, 2023;Yadiati et al, 2023;, 2024…”

Financial Statement Fraud: Pengujian Fraud Hexagon Dengan Moderasi Audit Committee

“…Financial pressure yang dialami manajemen tercipta karena perusahaan menetapkan target yang terlalu tinggi. Kinerja keuangan perusahaan akan dinilai baik oleh para pemangku kepentingan apabila target keuangan yang ditetapkan oleh direksi dapat dipenuhi, sehingga manajemen akan bekerja seefektif dan seefisien mungkin (Riyanti 2021). Berdasarkan Agency theory yang dikemukakan oleh Jensen and Meckling (1976), dijelaskan bahwa apabila manajemen telah berhasil mencapai target yang telah ditetapkan, stakeholders akan mengapresiasi kinerja manajemen dengan memberikan bonus kepada pihak manajemen.…”

“…Untuk mencapai ekspektasi dari pihak internal maupun eksternal perusahaan tersebut, pihak manajemen akhirnya melakukan financial statement fraud dengan cara memanipulasi angka atau keterangan yang ada pada financial statement perusahaan. Dalam penelitian yang dilakukan Riyanti (2021)…”

Determinants of Academic Fraud Behavior: The Perspective of the Pentagon Fraud Theory

“…Many studies related to fraud have been carried out by previous researchers, especially in the context of fraudulent financial statements with variables of pressure [13,14], the opportunity [15,16], rationalization [17,18], capability [13,14,19] and arrogance [4,20,21]. However, very few fraud studies link academic fraud, so this research has a role in filling the void in fraud research conducted by academics.…”