Fraud Triangle Analysis In Detecting Fraud In The Financial Statements Of Manufacturing Companies Listed On Idx 2018-2020

Abstract

The problem in this study is the results of previous studies regarding the influence of the fraud triangle theory are not consistent and there are still frequent occurrences of fraudulent financial statements. This phenomenon shows that the company's financial statements are not free from fraud. Therefore, further detection is needed to find out the causes of fraudulent financial statement actions. This study aims to analyze fraud triangles to potentially fraudulent financial statements. Fraud triangle in this study is pressure proxied by: (1) Financial stability, (2) Financial target, (3) External pressure, and (4) Personal financial need. Opportunity that is proxied by: (1) Nature of industry and (2) In-effective monitoring, and rationalizations. The result of the study partially shows that the variables of financial stability and nature of industry are proven to have an effect on the potential for fraudulent financial statements with significance level of (<0.001) and (0.005). Meanwhile, variables of financial target, external pressure, personal financial need, nature of industry, in-effective monitoring, and rationalizations have no effect on the potential for fraudulent financial statements with significance level of (0.582), (0.281), (0.837), (0.861), and (0.093).