Analisa teori fraud pentagon sebagai pendeteksi kecurangan pada laporan keuangan

Abstract

Financial statements are the results of financial reporting that can describe the results of an entity’s financial performance for a period. In other hand, it can cause managers in an entity to fraudulent financial reporting because they want to describe good financial performance. This proves that fraudu-lent financial reporting cases in Indonesia are a matter of weak internal control in an entity. This study aims to test fraud pentagon theory in de-tecting fraudulent financial reporting. The object of this research is testing on financial target, financial stability, external pressure, ineffective moni-toring, nature of industry, change in auditor, change in director, frequent number of CEO, political connection and company existence against fraud-ulent financial reporting of companies classified in the LQ45 index on the Indonesian Stock Exchange (IDX) during the period 2015-2017. This study uses 78 annual report data taken with proportional random sampling based on the number of proportions in each sector of the company. Data analysis using multiple regression analysis. The results of this study indicate that financial stability and frequent number of CEO can be used to detect fraudulent financial reporting. While, financial target, external pressure, ineffective monitoring, nature of industry, change in auditor, change in director, political connection and company existence cannot be used to de-tect fraudulent financial reporting.