Abstract
The purpose of this study is to provide empirical evidence of pentagon fraud risk factors sush as financial targets, financial stability, number of audit committee members, nature of industry, change in auditors, auditor opinion, change in director, proportion of the independent commissary, frequent number of CEO pictures, and CEO duality on fraudulent financial reporting with KAP big four as a moderating variable. The samples in this study were all state-owned companies listed on the Indonesia Stock Exchange in 2014-2018. The purposive sampling technique was used in sampling so that 55 companies were obtained. This study uses logistic regression analysis techniques with SPSS version 26. The results of the study indicate that financial stability and the auditor's opinion influence the fraudulent financial reporting. However, financial targets, number of audit committee members, nature of industry, change in auditors, change in director, proportion of the independent commissary, frequent number of CEO pictures, and CEO duality not effect on fraudulent financial reporting.
Highlights
The performance of a company can be demonstrated by the issuance of financial statements
The results of this study is financial target has no effect on fraudulent financial reporting, financial stability has a negative and significant effect on fraudulent financial reporting, the number of audit committee members has no effect on fraudulent financial reporting
Proportion of the independent commissary has no effect on fraudulent financial reporting, frequent number of CEO picture has no effect on fraudulent financial reporting, CEO duality has no effect on fraudulent financial reporting
Summary
The performance of a company can be demonstrated by the issuance of financial statements. Garuda Indonesia Persero Tbk. the beginning of 2018 recorded a profit of USD 809.85 thousand This figure jumped sharply compared to 2017 which lost a total of USD 216.58 million. This performance is surprising because in the third quarter of 2018 the company lost USD 114.08 million. For this violation, OJK dragged KAP Tanubrata Sutanto Fahmi Bambang and Partners as auditors of the company's financial statements. Crowe's Horwath involved in the development of fraud theory, namely pentagon fraud in 2011 The research he did added a new element, arrogance
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