The Influence of Fraud Diamond on Propensity Financial Statement Fraud with Audit Committee as Moderating Variable in Manufacturing Companies Sub Sector Food and Beverage Listed on the Indonesia Stock Exchange at the 2017-2019 Period

Abstract

The research objective was to examine and analyze the effect of financial stability, financial target, ineffective monitoring, change in auditor, change in direction on propensity financial statement fraud in manufacture companies sub-sector food and beverage listed on the Indonesia Stock Exchange at the period 2017-2019. This study also examines whether the audit committee can moderate the relationship between independent and dependent variables. The population was 26 companies. The method of determining the sample is using purposive sampling so that a sample of 42 observations. The research used descriptive quantitative method with classic assumption test, and multiple regression analysis (MRA) used two-equation regression tests. The analysis technique used is the SPSS 25 software. The analysis technique used in this study uses panel data regression analysis and moderating test with Eviews 10 software tools. This study partially shows that financial stability has a positive and significant effect on the propensity for financial statement fraud. Meanwhile, financial targets, ineffective monitoring, auditor change, and director change did not influence the propensity for financial statement fraud. The audit committee variable does note moderate the financial stability, financial target, ineffective monitoring, change in auditors, change in director on propensity financial statement fraud. Keywords: fraud diamond, pressure, opportunity, rationalization, capability, audit committee.