Theory and Factors Influencing Fraud in Financial Statements: A Systematic Literature Review

Soepriyanto, Gatot; Meiryani, Meiryani; Modjo, Mohamad Ikhsan

doi:10.1145/3472349.3472359

Cited by 3 publications

(2 citation statements)

References 16 publications

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“…PT SNP was accused of committing credit fraud, resulting in a loss of Rp14 trillion, and five executive members were named as suspects. PT Garuda Indonesia was also suspected of manipulating its 2018 financial reports, particularly on its accrued income, which resulted in a major improvement in its reported profit to $809 million in 2018, from having a $216.58 million loss in the previous year (Soepriyanto et al, 2020). This issue was first brought up by two commissioners of the firm’s own major shareholders, who gave dissenting opinions and hence did not sign the financial report.…”

Section: Institutional Background and Hypothesis Developmentmentioning

confidence: 99%

Does Executive Compensation Affect Accounting Irregularities? Evidence From Listed Firms in Indonesia

et al. 2022

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This research examined the association between executive compensation and accounting irregularities in Indonesia. Employing 1,100 firm-year observations during 2014 to 2017 period, we found that executive compensation is positively associated with accounting irregularities. This result is robust after we mitigated a serial order correlation of accounting irregularities and a self-selection bias using propensity score matching. We also discovered a positive relationship after considering alternative measures of accounting irregularities. Furthermore, we documented that the positive association between executive compensation and accounting irregularities is stronger for firms with higher board independence. Our findings provide important insights for regulators and Asian emerging market regulators who are considering promoting equity incentives for listed firms.

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Section: Institutional Background and Hypothesis Developmentmentioning

confidence: 99%

Does Executive Compensation Affect Accounting Irregularities? Evidence From Listed Firms in Indonesia

et al. 2022

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“…There are many theories in this era. The four prominent theories of fraud are “Fraud scale theory,” “Fraud Pentagon Theory,” “Fraud triangle Theory,” and “Fraud Diamond Theory.” The most common and influential factors among these theories are pressure, competency, opportunity, and rationalization ( Christian and Basri, 2019 ; Soepriyanto et al, 2021 ). Hence, the author of this article has selected the Diamond theory as having more important factors.…”

Section: Literature Reviewmentioning

confidence: 99%

Artificial Intelligence and Human Psychology in Online Transaction Fraud

Firdaus

Yang

et al. 2022

Front. Psychol.

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Banking operations have changed due to technological advancement. On one hand, modernization in technology has facilitated the daily operation of banks; on the other hand, this has also resulted in an increase in the number of cyber-attacks. Artificial Intelligence has introduced new models to detect and prevent cybercrimes. Some fraud has also occurred due to the involvement of employees inside particular organizations. So, this study has focused on both sides: the machine as well as the human. Firstly, the research has focused on fraud diamond theory and has analyzed factors such as rationalization, capabilities, perceived pressure, and perceived opportunities to understand the psychology of the fraudster. Secondly, Artificial Intelligence characteristics, threat exposure, big data management, explainability, cost effectiveness, and risk prediction are evaluated to explore their use in fraud reduction in banks. The research data have been collected from 15 Banks in Pakistan with the help of a questionnaire using five-item Likert scales. The data have been analyzed using IBM SPSS Software. The results gained after correlation and regression analysis proved that Fraud diamond theory and AI characteristics have positive and significant effects on cybercrimes. This study is a great contribution to the banking industry of Pakistan as it provides a complete analysis to control fraud inside organizations by understanding the mindset of fraudsters with the help of fraud diamond theory. At the same time, outside fraud will be handled with the help of Artificial Intelligence. This will result in banks growth, which ultimately boosts the economy of a country.

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Corporate governance disclosure and annual reports quality: An investigation in Vietnam context

Tran

2023

Cogent Economics & Finance

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Theory and Factors Influencing Fraud in Financial Statements: A Systematic Literature Review

Cited by 3 publications

References 16 publications

Does Executive Compensation Affect Accounting Irregularities? Evidence From Listed Firms in Indonesia

Does Executive Compensation Affect Accounting Irregularities? Evidence From Listed Firms in Indonesia

Artificial Intelligence and Human Psychology in Online Transaction Fraud

Corporate governance disclosure and annual reports quality: An investigation in Vietnam context

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