Main Article Content
Abstract
This study aims to determine the potential for financial statement fraud by using pentagon fraud analysis. Pentagon fraud is a concept that explains the factors that cause someone to commit fraud, namely pressure, opportunity, rationalization, capability, and arrogance. In this study, the pressure factor is proxy by using financial targets and external pressure. The opportunity factor is proxied by using the nature of industry and effective monitoring. The rationalization factor is proxied by using a change in auditor. The capability factor is proxied by using change in directors. Finally, the arrogance factor is proxied by using the frequent number of CEO’s picture. This study uses the F-Score Model to see the potential for fraudulent financial statements. The sample in this study were 33 banking companies listed on the Indonesia Stock Exchange in 2013-2017 that met certain criteria. The analysis technique used is panel data regression analysis and hypothesis testing using the t test. The results of this study indicate that the financial target and change in directors variables are proven to have a significant positive effect in detecting the potential for financial statement fraud, but the external pressure and nature of industry variables have a negative effect in detecting the potential for financial statement fraud. While the effective monitoring variable; change in auditor, and frequent number of CEO’s picture has no effect in detecting potential fraudulent financial statements.
Keywords: fraud pentagon, f-sore, potential fraudulent financial statements
Article Details
References
- ACFE. (2016a). Report to Nations. Association of Certified Fraud Examiners. Austin.
- ACFE. (2016b). Report to the Nation on Occupational Fraud & Abuse. Global Fraud Study.
- ACFE. (2018). Report To the Nations 2018 Global Study on Occupational Fraud and Abuse Asia-Pacific Edition (Vol. 10). Retrieved from https://www.acfe.com/uploadedFiles/ACFE_Website/Content/rttn/2018/RTTN- Asia-Pacific-Edition.pdf
- AICPA. (2002). AU Section 316 Consideration of Fraud in a Financial, (99, 113), 167–218.
- Akbar, T. (2017). The Determination of Fraudulent Financial Reporting Causes by Using Pentagon Theory On Manufacturing Companies In Indonesia. International Journal of Business, Economics and Law, 14(December), 106–113.
- Albrecht, W. S., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2012). Fraud Examination (4th ed.). South-Western: Cengage Learning.
- Andayani, T. D. (2010). Pengaruh Karakteristik Dewan Komisaris dan Komite Audit terhadap Manajemen Laba (Studi Pada Perusahaan Manufajtur yang Terdaftar di Bursa Efek Indonesia).
- Ardiyani, S., & Sri Utaminingsih, N. (2015). Analisis Determinan Financial Statement Melalui Pendekatan Fraud Triangle. Accounting Analysis Journal, 4(1), 1–10.
- Beasley, M. S., & Salterio, S. E. (2001). The Relationship between Board Characteristics and Voluntary Improvements in Audit Committee Composition and Experience. Contemporary Accounting Research, 18(4), 539–570. https://doi.org/10.1506/RM1J-A0YM- 3VMV-TAMV
- Cressey, D. R. (1953). Other People's Money: A Study in the Social Psychology of Embezzlemente. New Jersey: Patterson Smith.
- Crowe, H. (2011). Putting the Freud in Fraud: Why the Fraud Triangle Is No Longer Enough. IN Horwarth.
- Dechow, P. M., Ge, W., Larson, C. R., & Sloan, R. G. (2009). Predicting Material Accounting Misstatements. Contemporary Accounting Research, 28(1), 17–82. https://doi.org/10.1111/j.1911-3846.2010.01041.x
- Ghozali, I. (2013). Aplikasi Analisis Multivariate Dengan Program SPSS (7th ed.). Semarang: BP Universitas Diponegoro.
- Indarto, S. L., & Ghozali, I. (2016). Fraud Diamond : Detection Analysis On The Fraudulent Financial Reporting. Risk Governance & Control: Financial Markets & Institutions, 6(4), 116– 123.
- Jensen, M. C., & Meckling, W . H. (1976). Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–306.
- Kurnia, A. A., & Anis, I. (2017). Analisis Fraud Pentagon dalam Mendeteksi Kecurangan Laporan Keuangan dengan Menggunakan Fraud Score Model. Journal of Simposium Nasional Akuntansi XX.
- Loebbecke, J. K., Eining, M. M., & Willingham, J. J. (1989). Auditors' Experience with Material Irregularities: Frequency, Nature, and Detectability. Auditing: A Journal of Practice & Theory, 9(1), 1–28.
- Manurung, D. T. H., & Hardika, A. L. (2015). Analysis of factors that influence financial statement fraud in the perspective fraud diamond : Empirical study on banking companies listed on the Indonesia Stock Exchange year 2012 to 2014. In International Conference on Accounting Studies.
- Nurmulina, A., & Sasongko, N. (2017). Analisis Fraud Pentagon dalam Mendeteksi Financial Statement. Prospek Dan Tantangan Pengelolaan Keuangan Desa. https://doi.org/ISSN 2460- 0784
- Praditya, I. I. (2018). Terkuak, SNP Finance Rekayasa Laporan Keuangan Buat Bobol 14 Bank. Liputan 6. Retrieved from https://www.liputan6.com/bisnis/read/3653070/terkuak- snp-finance-rekayasa-laporan-keuangan-buat-bobol-14-bank
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- Rezaee, Z., & Riley, R. (2009). Financial Statement Fraud: Prevention and Detection (2nd ed.). Hoboken: John Wiley & Sons, Inc.
- Richardson, S. A., Sloan, R. G., Soliman, M. T., & Tuna, I. (2005). Accrual reliability, earnings persistence and stock prices. Journal of Accounting and Economics, 39(3), 437–485.
- https://doi.org/10.1016/j.jacceco.2005.04.005
- Rini, V. Y., & Achmad, T. (2012). Analisis Prediksi Potensi Risiko Fraudulent Financial Statement melalui Fraud Score Model. Diponegoro Journal of Accounting, 1, 1–15.
- Romney, M. B., & Steinbart, P. J. (2012). Accounting Information Systems (12th ed). Harlow: Pearson Education Limited.
- Septriani, Y., & Handayani, D. (2018). Mendeteksi Kecurangan Laporan Keuangan dengan Analisis Fraud Pentagon . Jurnal Politeknik Caltex Riau, 11(1), 11–23.
- Sihombing, K. S., & Rahardjo, S. N. (2014). Analisis Fraud Diamond Dalam Mendeteksi Financial Statement Fraud : Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia ( Bei ) Tahun 2010-2012. Diponegoro Journal of Accounting, 03(02).
- Skousen, C. J., Smith, K. R., & Wright, C. J. (2008). Detecting and predicting financial statement fraud: the effectiveness of the fraud traingle and.
- Skousen, C. J., & Twedt, B. J. (2009). Fraud in Emerging Markets: A Cross Country Analysis.
- Sriyana, J. (2014). Metode Regresi Data Panel (1st ed.). Yogyakarta: Ekonesia.
- Sukrisnadi, D. (2010). Pemakaian Ukuran F-Score dalam Kasus-Kasus Salah Saji Laporan Keuangan di Pasar Modal Indonesia.
- Summers, S. L., & Sweeney, J. T. (1998). Fraudulently Mistated Financial Statements An and Insider Trading: An Empirical Analysis. The Accounting Review, 73(1), 131–146.
- Suyanto. (2009). Evidence from Statement on Auditing Standard No . 99. Gadjah Mada International Journal of Business, 11(1), 117–144.
- Tessa, C. (2016). Fraudulent Financial Reporting : Pengujian Teori Fraud Pentagon pada Sektor Keuangan dan Perbankan di Indonesia.
- Widarjono, A. (2015). Statistika Terapan dengan Excell dan SPSS (1st ed.). Yogyakarta: UPP STIM YKPN.
- Wolfe, D. T., & Hermanson, D. R. (2004). The Fraud Diamond : Considering the Four Elements of Fraud. CPA Journal, 12(74), 38–42.
- Yusof, M. K., Ahmad, K. A. H., & Simon, J. (2015). Fraudulent Listed Companies. The Macrotheme Review, 4(3).
- Zaki, N. M. (2017). The Appropriateness of Fraud Triangle and Diamond Models in Assesing The Likelihood of Fraudulent Financial Statements- An Empirical Study on Firms Listed in The Egyptian Stock Exchange. International Journal of Social Science and Economic Research ISSN:, 2(2), 2403–2433.
References
ACFE. (2016a). Report to Nations. Association of Certified Fraud Examiners. Austin.
ACFE. (2016b). Report to the Nation on Occupational Fraud & Abuse. Global Fraud Study.
ACFE. (2018). Report To the Nations 2018 Global Study on Occupational Fraud and Abuse Asia-Pacific Edition (Vol. 10). Retrieved from https://www.acfe.com/uploadedFiles/ACFE_Website/Content/rttn/2018/RTTN- Asia-Pacific-Edition.pdf
AICPA. (2002). AU Section 316 Consideration of Fraud in a Financial, (99, 113), 167–218.
Akbar, T. (2017). The Determination of Fraudulent Financial Reporting Causes by Using Pentagon Theory On Manufacturing Companies In Indonesia. International Journal of Business, Economics and Law, 14(December), 106–113.
Albrecht, W. S., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2012). Fraud Examination (4th ed.). South-Western: Cengage Learning.
Andayani, T. D. (2010). Pengaruh Karakteristik Dewan Komisaris dan Komite Audit terhadap Manajemen Laba (Studi Pada Perusahaan Manufajtur yang Terdaftar di Bursa Efek Indonesia).
Ardiyani, S., & Sri Utaminingsih, N. (2015). Analisis Determinan Financial Statement Melalui Pendekatan Fraud Triangle. Accounting Analysis Journal, 4(1), 1–10.
Beasley, M. S., & Salterio, S. E. (2001). The Relationship between Board Characteristics and Voluntary Improvements in Audit Committee Composition and Experience. Contemporary Accounting Research, 18(4), 539–570. https://doi.org/10.1506/RM1J-A0YM- 3VMV-TAMV
Cressey, D. R. (1953). Other People's Money: A Study in the Social Psychology of Embezzlemente. New Jersey: Patterson Smith.
Crowe, H. (2011). Putting the Freud in Fraud: Why the Fraud Triangle Is No Longer Enough. IN Horwarth.
Dechow, P. M., Ge, W., Larson, C. R., & Sloan, R. G. (2009). Predicting Material Accounting Misstatements. Contemporary Accounting Research, 28(1), 17–82. https://doi.org/10.1111/j.1911-3846.2010.01041.x
Ghozali, I. (2013). Aplikasi Analisis Multivariate Dengan Program SPSS (7th ed.). Semarang: BP Universitas Diponegoro.
Indarto, S. L., & Ghozali, I. (2016). Fraud Diamond : Detection Analysis On The Fraudulent Financial Reporting. Risk Governance & Control: Financial Markets & Institutions, 6(4), 116– 123.
Jensen, M. C., & Meckling, W . H. (1976). Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–306.
Kurnia, A. A., & Anis, I. (2017). Analisis Fraud Pentagon dalam Mendeteksi Kecurangan Laporan Keuangan dengan Menggunakan Fraud Score Model. Journal of Simposium Nasional Akuntansi XX.
Loebbecke, J. K., Eining, M. M., & Willingham, J. J. (1989). Auditors' Experience with Material Irregularities: Frequency, Nature, and Detectability. Auditing: A Journal of Practice & Theory, 9(1), 1–28.
Manurung, D. T. H., & Hardika, A. L. (2015). Analysis of factors that influence financial statement fraud in the perspective fraud diamond : Empirical study on banking companies listed on the Indonesia Stock Exchange year 2012 to 2014. In International Conference on Accounting Studies.
Nurmulina, A., & Sasongko, N. (2017). Analisis Fraud Pentagon dalam Mendeteksi Financial Statement. Prospek Dan Tantangan Pengelolaan Keuangan Desa. https://doi.org/ISSN 2460- 0784
Praditya, I. I. (2018). Terkuak, SNP Finance Rekayasa Laporan Keuangan Buat Bobol 14 Bank. Liputan 6. Retrieved from https://www.liputan6.com/bisnis/read/3653070/terkuak- snp-finance-rekayasa-laporan-keuangan-buat-bobol-14-bank
Putriasih, K., Herawati, N. N. T., & Wahyuni, M. A. (2016). Analisis Fraud Diamond dalam Mendeteksi Financial Statement Fraud : Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) Tahun 2013-2015. Akuntansi Program S1, 1(3).
Rachman, F. F. (2018). Bank Bukopin Permak Laporan Keuangan, Ini Kata BI dan OJK. Detikfinance.Com. Retrieved from https://finance.detik.com/moneter/d-3994551/bank- bukopin-permak-laporan-keuangan-ini-kata-bi-dan-ojk
Rezaee, Z., & Riley, R. (2009). Financial Statement Fraud: Prevention and Detection (2nd ed.). Hoboken: John Wiley & Sons, Inc.
Richardson, S. A., Sloan, R. G., Soliman, M. T., & Tuna, I. (2005). Accrual reliability, earnings persistence and stock prices. Journal of Accounting and Economics, 39(3), 437–485.
https://doi.org/10.1016/j.jacceco.2005.04.005
Rini, V. Y., & Achmad, T. (2012). Analisis Prediksi Potensi Risiko Fraudulent Financial Statement melalui Fraud Score Model. Diponegoro Journal of Accounting, 1, 1–15.
Romney, M. B., & Steinbart, P. J. (2012). Accounting Information Systems (12th ed). Harlow: Pearson Education Limited.
Septriani, Y., & Handayani, D. (2018). Mendeteksi Kecurangan Laporan Keuangan dengan Analisis Fraud Pentagon . Jurnal Politeknik Caltex Riau, 11(1), 11–23.
Sihombing, K. S., & Rahardjo, S. N. (2014). Analisis Fraud Diamond Dalam Mendeteksi Financial Statement Fraud : Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia ( Bei ) Tahun 2010-2012. Diponegoro Journal of Accounting, 03(02).
Skousen, C. J., Smith, K. R., & Wright, C. J. (2008). Detecting and predicting financial statement fraud: the effectiveness of the fraud traingle and.
Skousen, C. J., & Twedt, B. J. (2009). Fraud in Emerging Markets: A Cross Country Analysis.
Sriyana, J. (2014). Metode Regresi Data Panel (1st ed.). Yogyakarta: Ekonesia.
Sukrisnadi, D. (2010). Pemakaian Ukuran F-Score dalam Kasus-Kasus Salah Saji Laporan Keuangan di Pasar Modal Indonesia.
Summers, S. L., & Sweeney, J. T. (1998). Fraudulently Mistated Financial Statements An and Insider Trading: An Empirical Analysis. The Accounting Review, 73(1), 131–146.
Suyanto. (2009). Evidence from Statement on Auditing Standard No . 99. Gadjah Mada International Journal of Business, 11(1), 117–144.
Tessa, C. (2016). Fraudulent Financial Reporting : Pengujian Teori Fraud Pentagon pada Sektor Keuangan dan Perbankan di Indonesia.
Widarjono, A. (2015). Statistika Terapan dengan Excell dan SPSS (1st ed.). Yogyakarta: UPP STIM YKPN.
Wolfe, D. T., & Hermanson, D. R. (2004). The Fraud Diamond : Considering the Four Elements of Fraud. CPA Journal, 12(74), 38–42.
Yusof, M. K., Ahmad, K. A. H., & Simon, J. (2015). Fraudulent Listed Companies. The Macrotheme Review, 4(3).
Zaki, N. M. (2017). The Appropriateness of Fraud Triangle and Diamond Models in Assesing The Likelihood of Fraudulent Financial Statements- An Empirical Study on Firms Listed in The Egyptian Stock Exchange. International Journal of Social Science and Economic Research ISSN:, 2(2), 2403–2433.