Abstract
This study aims to determine the effect of financial targets, financial stability, external pressure, effective monitoring, nature of industry, change in auditors, rationalization, change of company directors, CEO’s Picture on fraudulent banking financial statements in Indonesia for 2014-2019. This study uses the dependent variable, namely fraudulent financial reporting, while the independent variables are financial targets, financial stability, external pressure, effective monitoring, nature of industry, change in auditors, rationalization, competence and arrogance. The show that the variable financial targets, change in auditors, change of directors and CEO’s picture have no effect on the detection of fraudulent financial statements. Meanwhile, financial stability, external pressure, ineffective monitoring, nature of industry, and rationalization have an effect on the detection of fraud in financial reports for 2014-2019. The results of this study provide an understanding for the public and the general public that the government’s efforts so far have always played a major role in maintaining the condition of the Indonesian economy in order to avoid attempts to cheat financial statements.
Highlights
The financial report is a structural presentation issued by the company based on the results of company performance (Yuliani, 2010)
The sample criteria used in this study are that the sample can provide the information needed, including: 1) Go public banking companies listed on the Indonesia Stock Exchange from 2014-2019 and 2) Banking companies that publish annual financial reports as of December 31, 2014-2019 in a timely manner
Based on the analysis and discussion of this research, it can be concluded that the variable financial targets, change in auditors, change of directors and CEO's picture have no effect on the detection of fraudulent financial statements
Summary
The financial report is a structural presentation issued by the company based on the results of company performance (Yuliani, 2010). The fact that the company sometimes shows the results of the company's performance is in a state that is not true or does manipulation or misstatement intentionally carried out by the company's management. This is because the company wants to get a good spotlight from other parties. This is what drives the manipulation of information in financial reports. This action usually arises because of differences in interests or inequality of information between the agent and the principal
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