Overview

Original Research

THE DETECTING FRAUD FINANCIAL STATEMENT ON MINING COMPANIESIN INDONESIA

BUDIANDRU, and SAFUAN

Vol 17, No 07 ( 2022 )   |  DOI: 10.5281/zenodo.6911419   |   Author Affiliation: Universitas Muhammadiyah Prof. Dr. HAMKA, Jakarta, Indonesia; Universitas Jayabaya, Jakarta, Indonesia.   |   Licensing: CC 4.0   |   Pg no: 883-899   |   To cite: BUDIANDRU, and SAFUAN. (2022). THE DETECTING FRAUD FINANCIAL STATEMENT ON MINING COMPANIESIN INDONESIA. 17(07), 883–899. https://doi.org/10.5281/zenodo.6911419   |   Published on: 21-07-2022

Abstract

The purpose of this study was to examine the effect of the fraud triangle in explaining the phenomenon of financial statement fraud. This study consists of five (5) variables, namely Financial Stability as proxied by ACHANGE, External Pressure as proxied by Leverage, Nature of Industry as proxied by Receivable, Ineffective Monitoring as proxied by BDOUT, and Change in Auditor. From the results of logistic regression analysis, it was found that 22 companies committed fraud and 17 companies did not commit fraud from 2018 to 2020, and the financial stability variable and the fraud industry variable indicated the presence of accounting tampering. Accountancy. These results support the fraud triangle theory in explaining the phenomenon of financial statement fraud.

Keywords

Fraud Triangle, Financial Statement Fraud.