Application of fraud pentagon in detecting financial statement fraud

R. Daniel Eka Prasetya Antawirya; I Gusti Ayu Made Dwija Putri; I Gde Ary Wirajaya; I Gusti Ngurah Agung Suaryana; Herkulanus Bambang Suprasto

doi:10.21744/irjmis.v6n5.706

Authors

R. Daniel Eka Prasetya Antawirya
radendanielekaprasetya@gmail.com
Udayana University, Denpasar, Indonesia
I Gusti Ayu Made Dwija Putri Udayana University, Denpasar, Indonesia
I Gde Ary Wirajaya Udayana University, Denpasar, Indonesia
I Gusti Ngurah Agung Suaryana Udayana University, Denpasar, Indonesia
Herkulanus Bambang Suprasto Udayana University, Denpasar, Indonesia

Keywords:

financial, fraud, model, pentagon, statement

Abstract

Financial statements manipulation was a fraud form which is generally difficult to detect. The study was intended to analyze fraud pentagon elements in detecting fraudulent financial statements. The research population was all financial sector companies listed on the Indonesia Stock Exchange for the 2015-2018 period. Purposive sampling technique was used to determine the research sample and data analysis techniques used multiple regression. Based on the test results, it shows the financial set has a positive positive effect on fraudulent financial statements and the number of audit committee meetings that reflect effectiveness has a negative effect on fraudulent financial statements. The study results also contribute to the fraud pentagon theory and provide evidence that elements on fraud pentagon model can be used to detect fraudulent financial statements.

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