Fraud Diamond Analysis in Detecting Fraudulent Financial Reporting (Study on Indonesian Capital Market)
AbstractThis study aims to detect fraudulent financial reporting using diamond fraud analysis. Fraudulent financial reporting includes intentional errors, like the removal of an amount or disclosure in financial statements to influence the perceptions of users of financial statements. The fraud diamond theory developed by Wolfe and Hermanson in 2004 included pressure, opportunity, rationalization, and capability. This study uses secondary data. The population in this study were all non-financial companies listed on the Indonesia Stock Exchange in 2015-2017. The analysis technique used is factor analysis and multiple linear regression analysis. The test results prove that pressure, rationalization, and capability are able to predict fraudulent financial reporting. While the opportunity is not able to predict fraudulent financial reporting.
Beasly, M., Dana J. V.., and Terry. (2010). Fraudulent Financial Reporting. Available From: URL: http://www.coso.org/documents/COSOFRAUDSTUDY2010_001.pdf
Bell,TB., Sykoeny S., and Willingham J. (1991). Assessing The Likelihood of Fraudulent Financial Reporting: A Cascaded Logit Approach. New Jersey.
Cressy, D. (1953). Other People's Money: A Study In The Social Phychology Of Embezzlement. IL: Free Press.
Dalnial, Hawariah, Amrizah Kamaluddin, Zuraidah Mohd Sanusi, and Khairun Syafiza Khairuddin. (2014). “Detecting Fraudulent Financial Reporting through Financial Statement Analysis.” Journal of Advanced Management Science 2(1):17–22.
Eisenhardt, Kathleen M. (1989). “Agency Theory : An Assessment and Review Linked References Are
Available on JSTOR for This Article : Agency Theory : An Assessment and Review.” Academy of Management 14(1):57–74.
Faradiza, Sekar Anom and Suyanto. (2017). “Fraud Diamond: Pendeteksi Kecurangan Laporan Keuangan.” Seminar Nasional Riset Terapan 2017 196–201.
Harto, Chyntia Tessa &. Puji. (2016). “Pengujian Teori Fraud Pentagon Pada Sektor Keuangan Dan Perbankan Di Indonesia.” Simposium Nasional Akuntansi 1–21.
Hasnan.S., Rashidah A.R., Sakthi M. (2013). “Management Motive, Weak Governance, Earnings Management, and Fraudulent Financial Reporting: Malaysian Evidence.” Journal Of International Accounting Research 12(1):1–27.
Horwarth, Crowe. (2011). Putting The Freud in Fraud: Why The Fraud Is No Longer Enough. IN Howarth, Crowe.
Husmawati, Pera, Yossi Septriani, Irda Rosita, and Desi Handayani. (2017). “Fraud Pentagon Analysis in Assessing the Likelihood of Fraudulent Financial Statement ( Study on Manufacturing Firms Listed in Bursa Efek Indonesia Period 2013-2016 ).” International Conference of Applied Science on Engineering, Business, Linguistics and Information Technology (ICo-ASCNITech) (October):13–15.
Indiriani, Poppy and Titan Terzaghi. (2017). “Fraud Diamond Dalam Mendeteksi Kecurangan Laporan Keuangan.” I-Finance 3(2):161–72.
Jensen, Michael C. and William H. Meckling. (1976). "Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure." Journal of Financial Economics 3(4):305–60.
Kusumaningtyas, Metta. (2014). “Pengaruh Ukuran Komite Audit Dan Kepemilikan Institusional Terhadap Manajemen Laba.” Prestasi 13(1):82–96.
Loebbecke, J., Eining M., and Willingham J. (1989). “Auditor’s Experience With Material Irregularities: Frequency, Nature, and Detestability.” Auditing: A Journal Of Practice and Theory 9(1).
Lou, Yung-i and Ming-long Wang. (2009). “Fraud Risk Factor Of The Fraud Triangle Assessing The Likelihood Of Fraudulent Financial Reporting.” Journal of Business & Economics Research 7(2):61– 78.
Maghfiroh and dkk. (2015). “Analisis Pengaruh Financial Stability , Personal Financial Need , External Pressure , Dan Ineffective Monitoring Pada Financial Statement Fraud Dalam Perspektif Fraud.” Jurnal Ekonomi Dan Bisnis 16(1):51–66.
Marsha, Felicia and Imam Ghozali. (2017). “Pengaruh Ukuran Komite Audit, Audit Eksternal, Jumlah Rapat Komite Audit, Jumlah Rapat Dewan Komisaris, Dan Kepemilikan Institusional Terhadap Manajemen Laba ( Studi Empiris Perusahaan Manufaktur Yang Terdaftar Di BEI.” Diponegoro Journal of Economics 6(2):1–13.
Nauval, Muhammad. (2014). “Analisis Faktor-Faktor Yang Berpengaruh Terhadap Kecenderungan Financial Statement Fraud Dalam Perspektif Fraud Triangle.” DiponegoroJournal Of Accounting.
Oktarigusta, Lutfiana. (2017). “Analisis Fraud Diamond Untuk Mendeteksi Terjadinya Financial Staement Fraud Di Perusahaan (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di BEI Tahun 2012-2015).” Jurnal Ekonomi Manajemen Sumber Daya 19(2):93–108.
Rachmawati, Kurnia Kusuma and Marsono. (2014). “Pengaruh Faktor - Faktor Dalam Perspektif Fraud Triangle Terhadap Fraudulent Financial Reporting ( Studi Kasus Pada Erusahaan Berdasarkan Sanksi Dari Bapepam Periode 2008-2012 ).” Diponegoro Journal of Accounting 3(2):1–14.
Sihombing, Kennedy Samuel and Shiddiq Nur Rahardjo. (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):1–12.
Skousen, C.J., Smith, K.R and Wright, C. .(2009). “Detecting and Predicting Financial Statement Fraud: The Effectiveness Of TheFraud Triangle And SAS No.99.” Corporate and Firm Performance Advances in Financial Economics 13:53–81.
Statement of Auditing Standards (SAS) No.99 Tahun 2002
Summers, S., and Sweeny J. (1998). “Fraudulently Missateted Financial Statements and Insider Trading: An Empirical Analysis.” The Accounting Review 73 (1):131–46.
Tiffani, Laila and Marfuah. (2015). “Deteksi Financial Statement Fraud Dengan Analisis Fraud Triangle Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia.” Jaai 19 No. 2(Desember):112–25.
Ulfah, Maria, Elva Nuraina, and Anggita Langgeng Wijaya. (2017). “Pengaruh Fraud Pentagon Dalam Mendeteksi Fraudulent Financial Reporting (Studi Emiris Pada Perbankan Di Indonesia Yang Terdaftar Di BEI).” Forum Ilmiah Pendidikan Akuntansi 5 No.1(Oktober):399–417.
Utama, I. Gusti Putu Oka Surya, I. Wayan Ramantha, and I. Dewa Nyoman Badera. (2018). “Analisis Faktor-Faktor Dalam Perspektif Fraud Triangle Sebagai Prediktor Fraudulent Financial Reporting.” EJurnal Ekonomi Dan Bisnis Universitas Udayana 1:251–78.
Wolfe, David T. and Dana R. Hermanson. (2004). “The Fraud Diamond : Considering the Four Elements of Fraud.” CPA Journal 74(12):38–42.
Authors who submit papers with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- 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 this journal.
- 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).
- By submitting the processing fee, it is understood that the author has agreed to our terms and conditions which may change from time to time without any notice.
- It should be clear for authors that the Editor In Chief is responsible for the final decision about the submitted papers; have the right to accept\reject any paper. The Editor In Chief will choose any option from the following to review the submitted papers:A. send the paper to two reviewers, if the results were negative by one reviewer and positive by the other one; then the editor may send the paper for third reviewer or he take immediately the final decision by accepting\rejecting the paper. The Editor In Chief will ask the selected reviewers to present the results within 7 working days, if they were unable to complete the review within the agreed period then the editor have the right to resend the papers for new reviewers using the same procedure. If the Editor In Chief was not able to find suitable reviewers for certain papers then he have the right to accept\reject the paper.B. sends the paper to a selected editorial board member(s). C. the Editor In Chief himself evaluates the paper.
- Author will take the responsibility what so ever if any copyright infringement or any other violation of any law is done by publishing the research work by the author
- Before publishing, author must check whether this journal is accepted by his employer, or any authority he intends to submit his research work. we will not be responsible in this matter.
- If at any time, due to any legal reason, if the journal stops accepting manuscripts or could not publish already accepted manuscripts, we will have the right to cancel all or any one of the manuscripts without any compensation or returning back any kind of processing cost.
- The cost covered in the publication fees is only for online publication of a single manuscript.