PERSPECTIVE OF CROWE’S FRAUD PENTAGON IN DETECTING FRAUDULENT FINANCIAL STATEMENT (Case Studies on Manufacturing Companies Listed on the IDX for 2019-2021)

Authors

  • Muhammad Fauzan Zakiy Muhammadiyah Purwokerto University, Indonesia
  • Hadi Pramono Muhammadiyah Purwokerto University, Indonesia
  • Sri Wahyuni Muhammadiyah Purwokerto University, Indonesia
  • Nur Isna Inayati Muhammadiyah Purwokerto University, Indonesia

DOI:

https://doi.org/10.29040/ijebar.v6i4.7429

Abstract

This study aims to examine the possibility of fraud in financial statements using the pentagon fraud perspective. The pentagon fraud theory is a development of the diamond fraud and triangle fraud theories. The pentagon fraud theory adds arrogance to the four existing elements, namely pressure, opportunity, rationalization, and ability or competence. The population used in this research is 30 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for 2019-2021. The samples obtained using the purposive sampling technique were 71 samples. Data were analyzed using descriptive statistical tests, classic assumption tests and hypothesis testing using multiple linear regression methods. The results of this study indicate that external pressure, financial targets, and institutional ownership have a positive effect, and effective monitoring negatively influences fraudulent financial reporting. In contrast, financial stability, nature of the industry, changes in auditors, changes of directors and frequency of the CEO's picture do not significantly affect financial statement fraud.

References

Abdul Karim, M. M. (2021). Fraud Examination Of The Enron Corp Company. Journal Of Finance And Investment Analysis, 15–24. Https://Doi.Org/10.47260/Jfia/1042

Abidin, F. (2018). Analisis Persepsi Akademisi Dan Praktisi Terhadap Fraud Serta Peran Whistleblowing Sebagai Upaya Pencegahan Dan Pendeteksian Fraud. Media Mahardhika, 17(1), 153–164.

Acfe Indonesia Chapter #111. (2016). Association Of Certified Fraud Examiners (Acfe). In Acfe (Ed.), Auditor Essentials: Vol. Chapter #111 (Indonesia, Pp. 7–10). Auerbach Publications. Https://Doi.Org/10.1201/9781315178141-3

Agusputri, H., & Sofie, S. (2019). Faktor - Faktor Yang Berpengaruh Terhadap Fraudulent Financial Reporting Dengan Menggunakan Analisis Fraud Pentagon. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 14(2).

Amarakamini, N. P., & Suryani, E. (2019). Pengaruh Fraud Pentagon Terhadap Fraudulent Financial Statement Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia (Bei) Tahun 2016 Dan 2017. Jurnal Akuntansi, 7(2), 125–136.

Anggraeni, S., & Efendi. (2022). Pengaruh Tekanan Eksternal, Pengendalian Internal, Dan Pergantian Auditor Terhadap Kecurangan Laporan Keuangan (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia (Bei) Periode 2017 – 2021). Universitas Darma Persada Jakarta.

Anwar, A. (2022). Dampak Faktor Internal Dan Moralitas Manajer Terhadap Kecenderungan Kecurangan Akuntansi. Universitas Muhammadiyah Makassar.

Apriliana, S., & Agustina, L. (2017). The Analysis Of Fraudulent Financial Reporting Determinant Through Fraud Pentagon Approach. Jda Jurnal Dinamika Akuntansi, 9(2), 154–165. Https://Doi.Org/10.15294/Jda.V9i2.4036

Aprilyanti, L. (2021). The Influence Of Professional Skepticism And Auditor Independence On Fraud Detection (Empirical Study On Public Accounting Firm In Bandung). Universitas Komputer Indonesia.

Aulia Haqq, A. P. N., & Budiwitjaksono, G. S. (2020). Analisa Teori Fraud Pentagon Sebagai Pendeteksi Kecurangan Pada Laporan Keuangan. Journal Of Economics, Business, & Accountancy Ventura, 22(3). Https://Doi.Org/10.14414/Jebav.V22i3.1788

Bawekes, H. F., Simanjuntak, A. M., & Christina Daat, S. (2018). Pengujian Teori Fraud Pentagon Terhadap Fraudulent Financial Reporting (Studi Empiris Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2011-2015). In Jurnal Akuntansi & Keuangan Daerah (Vol. 13, Issue 1).

Beneish, M. D. (1999). The Detection Of Earnings Manipulation.

Casabona, P. A. (2003). Sas 99 - Consideration Of Fraud In A Financial Statement Audit: A Revision Of Statement On Auditing Standards 82. Review Of Business, Spring.

Cressey, D. R. (1953). Other People’s Money: A Study In The Social Psychology Of Embezzlement. (Vol. 59). Montclair, N.J. Https://Doi.Org/10.1086/221475

Fadhlurrahman, A. N. (2021). Deteksi Fraud Financial Statement Menggunakan Model Fraud Pentagon Pada Perusahaan Yang Terdaftar Di Jii Tahun 2016-2018. Jurnal Ilmiah Ekonomi Islam, 7(2). Https://Doi.Org/10.29040/Jiei.V7i2.2566

Ghandur, D., Sari, R. N., & Anggraini, L. (2019). Analisis Fraud Pentagon Dalam Mendeteksi Kecurangan Laporan Keuangan . Jurnal Akuntansi, 8(1), 26–40.

Ghozali, I. (2016). Aplikasi Analisis Multivariete Dengan Program Ibm Spss 23. Badan Penerbit Universitas Diponegoro.

Grace Fabiolla, R., Ari Andriyanto, W., & Julianto, W. (2021). Pengaruh Fraud Pentagon Terhadap Fraudulent Financial Reporting (Vol. 2).

Gusti, I., Oka, P., Utama, S., Ramantha, W., Dewa, I., & Badera, N. (2018). Analisis Faktor-Faktor Dalam Perspektif Fraud Triangle Sebagai Prediktor Fraudulent Financial Reporting (Vol. 7, Issue 1).

Handoyo, S., & Hasanah, N. (2017). Corporate Governance, Opini Going Concern, Subsequent Event Dan Audit Report Lag. Jurnal Aplikasi Bisnis, 17(2).

Horwath, C. (2011). Putting The Freud In Fraud: Why The Fraud Triangle Is No Longer Enough.

Jensen, M. C., Meckling, W. H., Benston, G., Canes, M., Henderson, D., Leffler, K., Long, J., Smith, C., Thompson, R., Watts, R., & Zimmerman, J. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. In Journal Of Financial Economics (Issue 4). Harvard University Press. Http://Hupress.Harvard.Edu/Catalog/Jenthf.Html

Kurnia, & Anis. (2017). Analisis Fraud Pentagon Dalam Mendeteksi Kecurangan Laporan Keuangan Dengan Menggunakan Fraud Score Model. Trisakti Jakarta.

Loebbecke, J., Eining, M., & Willingham, J. (1989). Auditors Experience With Material Irregularities: Frequency, Nature, And Detestability. Auditing: A Journal Of Practice & Theory, 9(Fall), 1–28.

Mintara Dan Hapsari. (2021). Pendeteksian Kecurangan Pelaporan Keuangan Melalui Fraud Pentagon Framework. Jurnal Perspektif Akuntansi, 4, 35–58.

Noble, M. R. (2019). Fraud Diamond Analysis In Detecting Financial Statement Fraud. The Indonesian Accounting Review, 9(2), 121. Https://Doi.Org/10.14414/Tiar.V9i2.1632

Novitasari, A. R., & Chariri, A. (2018). Analisis Faktor-Faktor Yang Mempengaruhi Financial Statement Fraud Dalam Perspektif Fraud Pentagon. Diponegoro Journal Of Accounting, 7(4), 1–15. Http://Ejournal-S1.Undip.Ac.Id/Index.Php/Accounting

Prayoga, M. A., & Sudarmaji, E. (2019). Kecurangan Laporan Keuangan Dalam Perspektif Fraud Diamond Theory: Studi Empiris Pada Perusahaan Sub Sektor Transportasi Di Bursa Efek Indonesia. Jurnal Bisnis Dan Akuntansi, 21(1), 89–102.

Sasongko, N., & Wijayantika, S. F. (2019). Faktor Resiko Fraud Terhadap Pelaksanaan Fraudulent Financial Reporting (Berdasarkan Pendekatan Crown’s Fraud Pentagon Theory). Jurnal Riset Akuntansi Dan Keuangan Indonesia, 4(1).

Septriani, Y., & Desi Handayani, Dan. (2018). Mendeteksi Kecurangan Laporan Keuangan Dengan Analisis Fraud Pentagon (Vol. 11, Issue 1). Http://Jurnal.Pcr.Ac.Id

Skousen, C. J., Smith, K. R., Wright, C. J., & Chasteen Chair, L. G. (2008). Detecting And Predicting Financial Statement Fraud: The Effectiveness Of The Fraud Traingle And Sas No. 99. Http://Ssrn.Com/Abstract=1295494electroniccopyavailableat:Http://Ssrn.Com/Abstract=1295494

Summers, S. L., & Sweeney, J. T. (1998). Fraudulently Misstated Financial Statements And Insider Trading: An Empirical Analysis. The Accounting Review, 73(1), 131–146.

Vivianita, A., & Indudewi, D. (2018). Financial Statement Fraud Pada Perusahaan Pertambangan Yang Dipengaruhi Oleh Fraud Pentagon Theory (Studi Kasus Di Perusahaan Tambang Yang Terdaftar Di Bei Tahun 2014-2016). Jurnal Dinamika Sosial Budaya, 20(1), 1–15.

Vousinas, G. L. (2019). Advancing Theory Of Fraud: The S.C.O.R.E. Model. Journal Of Financial Crime, 26(1), 372–381. Https://Doi.Org/10.1108/Jfc-12-2017-0128

Wahyuni, & Setyo, G. (2017). Fraud Triangle Sebagai Pendeteksi Kecurangan Laporan Keuangan: Vol. Xxi (Issue 01).

Wolfe, D. T., & Hermanson, D. R. (2004). The Fraud Diamond: Considering The Four Elements Of Fraud. Https://Digitalcommons.Kennesaw.Edu/Facpubs

Yesiariani, M., & Rahayu, I. (2017). Deteksi Financial Statement Fraud: Pengujian Dengan Fraud Diamond. Jurnal Akuntansi & Auditing Indonesia, 21(1), 49–60. Https://Doi.Org/10.20885/Jaai.Vol21.Iss1.Art5

Yuliana, Y., Hartono, A., Fernando, A., Meiden, C., Apriwenni, P., Nurlela, N., & Dema, Y. (2022). A Literature Study Of Financial Statement Fraud Detection. International Journal Of Social Science, 2(3), 1745–1754. Https://Doi.Org/10.53625/Ijss.V2i3.3647

Downloads

Additional Files

Published

2022-12-30

How to Cite

Zakiy, M. F., Pramono, H., Wahyuni, S., & Inayati, N. I. (2022). PERSPECTIVE OF CROWE’S FRAUD PENTAGON IN DETECTING FRAUDULENT FINANCIAL STATEMENT (Case Studies on Manufacturing Companies Listed on the IDX for 2019-2021). International Journal of Economics, Business and Accounting Research (IJEBAR), 6(4). https://doi.org/10.29040/ijebar.v6i4.7429

Issue

Vol. 6 No. 4 (2022): IJEBAR, Vol. 6 Issue 4, December 2022

Section

Articles

Citation Check

License

Authors who publish with IJEBAR agree to the following terms: Authors retain copyright and grant the IJEBAR right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in IJEBAR. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in IJEBAR. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Most read articles by the same author(s)