The fraud triangle: factors causing fraud in government financial reports

Abstract

Fraud Terms in financial reports, it is an action or deed that can cause reporting errors in financial reports, where this action is an action carried out intentionally to gain personal benefit from the resources available in the company or certain field that is being undertaken. This action is often carried out by a person or management by manipulating financial reports or in Indonesia is often referred to as corruption. The aim of this research is to conduct a literature review regarding the factors that cause fraud in the preparation of financial reports. In examining these financial reports, the auditor is tasked with and is expected to be able to detect fraud before concluding whether a financial report is reasonable or unreasonable. There are several factors that can cause fraud based on literature studies that have been carried out by researchers, namely due to pressure, opportunities, and factors of rationalization or self-justification. This research was carried out using the literature study method or literature review of previous research related to the problem being researched, namely fraud. The results of the research obtained show that several factors that cause fraud in financial reports are mostly due to pressure, opportunity and individual factors.