Detection Fraud of Financial Statement with Fraud Triangle

Daniel T. H. Manurung · Niki Hadian

58 citations0/0 files stored

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Governance and Financial Management Auditing, Earnings Management, Governance Financial Literacy and Behavior

Abstract

This study aims to obtain empirical evidence to detect fraudulent financial statements based on the perspective of fraud triangle. Fraud triangle theory proposed by Cressey (1953) states that there are three conditions that are always present in every instance of fraud, pressure, opportunity and rationalization. Based on the proposed theory of fraud triangle. Fraudulent financial reports on this research is proxied by earnings management. Variables variables used of fraud triangle is composed of the pressure of financial stability (AGROW), external pressure by proxy leverage ratio (LEV)), Financial Targets with proxy return on assets (ROA) and the ineffectiveness monitoring by proxy the ratio of independent board (BDOUT). Data on indications of fraud financial report in this study are listed in LQ45 stocks. The population in this study is a company registered in LQ45 in periode 2012 –2013. The selection of the sample in this study was conducted with a purposive sampling method and obtained samples are 35 companies listed in the LQ45 both contain elements of fraud in the financial statements and did not commit fraud in the financial statements (by industry and total assets) to perform financial statement presentation back . In this research, hypothesis testing is done using multiple linear regression method. Results of this study indicate that the stability of the financial variables that proxy the asset growth rate (AGROW) has a positive influence by fraud financial statements, financial targets proxied by profitability ratios (ROA) has a positive relationship with fraudulent financial statements, financial effectiveness is proxied by the ratio of the commissioners (BDOUT) has a positive relationship with fraudulent financial statements, the external pressure is proxied by Leverage Ratio (LEV) has a negative relationship with financial statement fraud.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 58 citations exist upstream.

References

2009Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99 2004Financial Statement Fraud: Prevention and Detection 2011Fraudulent Financial Reporting

Cited by

2021Detecting financial statement fraud through new fraud diamond model: the case of Indonesia 2018Financial Statement Fraud: Perspective of the Pentagon Fraud Model in Indonesia 2019Business Ethics in Providing Financial Statements: The Testing of Fraud Pentagon Theory on the Manufacturing Sector in Indonesia 2023An empirical study to detect agency problems in listed corporations: The emerging market study 2015Forensic Accounting and Fraud Risk Factors: The Influence of Fraud Diamond Theory 2019Testing of Fraud Diamond Theory Based on Local Wisdom on Fraud Behavior

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.