Fraud Diamond Research Articles

FRAUD DIAMOND TERHADAP FINANCIAL STATEMENT FRAUD

This study aims to examine the effect of diamond fraud on financial statement fraud: an empirical study in the west kalimantan province, both partially and simultaneously. Fraud can occur in every country with different types and frequencies, because there are still potential risks of corruption in the political system that hasn’t changee. In addition, there are indications of suspicious relation between politicians and business people who explain that bribery and corruption are still present in the indonesian political system. Fraud Diamond’s research results on the financial statement fraud: empirical study in west kalimantan, shows that partially external presure and opportunity affect the financial statement farud, while rationalization and capability doesn’t affect the financial statement fraud. In addition, simultaneously external presure, rationalization, opportunity, and capability affect the financial statement fraud of 86,4%, while the remaining 13,6% is influence by other variables not examine in this study

Religiosity as the moderating effect of diamond fraud and personal ethics on fraud tendencies

<p class="IABSSS"><strong>Purpose</strong> - This study aims to determine the effect of each dimension of diamond fraud (pressure, opportunity, rationalization, capability) and personal ethics on the fraud tendency (assets misappropriation) and understanding of religiosity as moderating variable.</p><p class="IABSSS"><strong>Method </strong>- The study was conducted by survey method. The samples are amil zakat in Yogyakarta. Data analysis in this study applied multiple linear regression analysis with IBM SPSS version 22. The instruments were adopted from previous research.</p><p class="IABSSS"><strong>Result</strong> - The results of data analysis in this study show that there are positive influences between elements of diamond fraud (pressure, opportunity, rationalization, capability) on the fraud tendency (assets misappropriation) but personal ethics do not influence the fraud tendency. While the understanding of religiosity is able to moderate elements of diamond fraud (pressure, opportunity, rationalization, capability) and personal ethics.</p><p class="IABSSS"><strong>Implication</strong> - Future research can expand the object of research in several other provinces. In addition, fraud theory used is Fraud Diamond Theory. Whereas now there has been an increase in the cause of fraud, which is arrogance and evolved into Fraud Pentagon Theory, so that the next arrogance variable can be added as an independent variable.</p><p><strong>Originality</strong> - This reseacrh is still using samples in one province, and Amil Zakat sample was chosen as a sample because based on data submitted by BAZNAS.</p>

Rural banks fraud: a story from Indonesia

Purpose The purpose of this paper is to highlight the causes of fraud in rural banks in Indonesia and provide recommendations to reduce these financial crimes. Design/methodology/approach This paper is desk research using secondary data from research reports, journal articles, magazine articles and online news related to fraud cases in rural banks. The Fraud Diamond approach is applied to analyze the problems. Findings Financial and non-financial pressures, opportunities that are open because of weak oversight and governance, justification of fraud and the capability of perpetrators are the factors that cause bank fraud. Opportunity is the most significant contributor to fraud. Originality/value The novelty of this paper is that it discusses the causes of fraud in rural banks. Management and authority can learn from this case.

MENDETEKSI KECURANGAN LAPORAN KEUANGAN DENGAN ANALISIS FRAUD DIAMOND DALAM PERSPEKTIF ISLAM (Studi Empiris Bank Umum Syariah di Indonesia)

As a Sharia-based financial intermediary, sharia commercial banks operate based on sharia principles (Islam), and procedures are based on the provisions of the Koran and Hadith. Financial statements in Islamic bank accounting are financial statements that describe the functions of Islamic banks. But the banking sector is the sector that has the most fraud/fraud cases compared to other sectors. Fraud of financial statements is considered a risk because it does not carry out a mandate which causes financial statements to be inaccurate and violate Sharia principles. The purpose of this study is to detect fraudulent financial statements by analyzing diamond fraud in Islamic perspectives through financial stability, effective monitoring, rationalization, and capability with the ultimate goal of recommending policies to improve Sharia banking management following sharia principles. This type of research uses explanatory research with a quantitative approach. Analysis of the data in the study used multiple linear regression analysis on the financial statements of 12 Islamic banks in Indonesia from 2013 to 2017. The results of this study's Financial Stability, Effective Monitoring, and Capability variables did not affect Financial Report Fraud. While the Rationalization variable affects the Fraud of Financial Statements.

Analisis Faktor Pendorong Kecurangan Berbasis Teori Diamond Fraud pada Pemerintah Desa

The purpose of this study is to describe the perceptions of village government officials regarding the factors driving diamond fraud based fraud. Diamond fraud theory explains the factors of someone committing fraud. The methodology of this research is qualitative, the data used are primary data that is questionnaire. The sample in this study used a purposive sampling method with criteria of 256 employees of the Lumajang district government. The results showed that the perception of village government officials about the factors driving fraud was quite good, with mode 4 which means agreeing with the proxy of the diamond fraud theory.

FRAUD RISK ASSESSMENT: EXPERIMENTAL STUDY ON THE ALTERNATIVE FRAUD MODEL AND AUDITOR RISK PREFERENCES

Fraud risk assessment is an important part of the audit process and one of the toughest challenges faced by auditors. In considering fraud risk assessment, fraud models and risk preferences can influence auditor’s decisions. This study uses a 2x2 between-subject experimental design with a total of 110 auditors of public accountant firms in Central Java as participants and produces 60 data ready for processing. Participants were formed into 4 groups with different treatments which the treatments consist of Diamond Fraud model with high and low risk preferences and Pentagon Fraud model with high and low risk preferences. The results show that the use of Pentagon Fraud model will result a more conservative fraud risk assessment. When auditors dare to take high risk action, the resulting fraud risk assessment will be low. In addition, the fraud model and risk preference variables show a significant influence on the performing of fraud risk assessment. There is an interaction between fraud models and auditors’ risk preferences in the performance of fraud risk assessment.

ANALISIS KECURANGAN LAPORAN KEUANGAN : PENGUJIAN TEORI FRAUDDIAMOND (STUDI PADA PERUSAHAAN MANUFAKTUR DI INDONESIA)

This study aims to determine the factors that influence fraud in financial statements. Detection of fraudulent financial statements using the theory of Fraud Diamond in manufacturing companies listed on the Indonesia Stock Exchange in 2016-2017. Fraud Diamond proposed by Wolfe and Hermanson (2009). Four variables of fraud diamond were tested which consisted of pressure, opportunity, rationalization and competency. Pressure is proxied by financial targets, financial stability, external pressures and individual financial needs. Opportunities are proxied by the effectiveness of supervision and the nature of the industry. Rationalization is proxied by the change of auditors, and Competency (capability) is proxyized by the replacement of the board of directors. The research sample used was 70 manufacturing companies listing on the Indonesia Stock Exchange in the 2016-2017 period with 140 financial statements. Data were analyzed using logistic regression analysis. The results showed that the variables financial targets, financial stability, external pressures, individual financial needs of supervision, ineffective monitoring, the nature of the industry, change of auditors and changes in the board of directors did not have an influence on financial statement fraud. From the results of these studies indicate that all research variables studied at each manufacturing company have not been able to indicate financial statement fraud.

KECURANGAN AKADEMIK: FRAUD DIAMOND, PERILAKU TIDAK JUJUR, DAN PERSEPSI MAHASISWA

Academic cheating, especially those committed by students, is a worrying phenomenon that should not occur. Dishonest behavior is one of the factors causing the fraud. Pressure, opportunity and rationalization are other factors that cause students to cheat. The purpose of this study was to determine the analysis of diamond fraud p, dishonest behavior, and student perceptions influence academic cheating, the control variables used were religiosity and technological progress. This research approach is a mix method (mix methods). The object of research is Pamulang University S1 Accounting Study Program in odd semester 2018/2019 with a sample of 142 people. All questions are submitted via Google Drive. For data processing using SPSS version 22. The result of data processing requires diamond fraud to have a significant positive effect on academic fraud. There are 1.5% of students stating academic cheating related to the absence and collusion during exams, this is due to the pressure and ability of more than the individual student. And 3.9% of students are proven to have plagiarism when e-learning and writing papers, this is done because of the often wrong rationalization of unscrupulous students. Person of the student usually justifies what he usually does not accustom the right. Student perceptions and dishonest behavior did not have a significant effect on academic fraud. Keywords: Fraud diamond; dishonest behavior; student perception; academic cheating

Pengaruh Elemen Fraud Diamond Theory Terhadap Financial Statement Fraud

The purpose of this study was to determinate the effect fraud diamond theory in financial statement fraud. The population in this study are manufacturing companies sector consumer goods industry listed on the Indonesia Stock Exchange in 2015-2018. The sampling technique used was purposive sampling method and obtained 112 samples. Data analysis using multiple linear regression analysis techniques and processed with IBM SPSS Statistics 25 software. The results showed that the financial target, ineffective monitoring, auditor report and changes in directors had a simultaneous effect on financial statement fraud. Partially, financial target affect financial statement fraud, while ineffective monitoring, auditor report and change of director do not affect the financial statement fraud.

Is the fraud diamond perspective valid in Kenya?

PurposeThe purpose of this study was to determine the influence of the elements of the fraud diamond theory in detecting financial statement fraud among non-financial firms in Kenya. Secondary data used to calculate ratios and figures representing the study variables was collected using a checklist for each of the targeted firms listed in the Nairobi Securities Exchange in Kenya for the 2013-2017 period.Design/methodology/approachSecondary data used to calculate ratios and figures representing the study variables was collected using a checklist for each of the targeted firms listed in the Nairobi Securities Exchange in Kenya for the 2013-2017 period. Convenience sampling technique was used to come up with a sample size of 35 out of the targeted population of 45 non-financial firms listed in Kenya (78% representation). This sample size was representative enough of the targeted population.FindingsThe results strongly supported that all the four elements of the fraud diamond triangle influenced financial statement fraud in Kenya. However, using three parameters, namely R2, predicted sign and standard error, to compare the applicability of either the Yoon et al. (2006) or the modified Jones (1991), our study findings are mixed. It is therefore imperative that a new model should be developed in detecting earnings management in the Kenyan context. Note that including other variables will to a greater extent increase the explanatory power in detecting earnings management practiced by non-financial firms listed in Kenya.Research limitations/implicationsUse of secondary information in the study was one limitation. Certain financial information was missing from some of the targeted firms’ official websites and the Nairobi Securities Exchange research handbooks. The researcher ensured that only non-financial firms whose audited financial statements were easily accessible were included in the study. Firms whose records were not readily available were excluded from the survey.Practical implicationsPractically, this study enables regulatory authorities in Kenya to understand the extent with which each element of the fraud diamond theory could be relied on in detecting financial statement fraud. Moreover, it will advise them on the areas to lay more emphasis when attempting to detect financial statement fraud using this model.Originality/valueThe main value of this study is the determination of the key elements of the fraud diamond theory, which have influence on financial statement fraud among non-financial firms listed in Kenya.

Fraud Diamond and Financial Crimes in Nigerian Banking Industries

Fraud Diamond and Financial Crimes in Nigerian Banking Industries

FAKTOR-FAKTOR YANG MEMOTIVASI KECURANGAN LAPORAN KEUANGAN

Financial statements are an important instrument for every company. Financial statements are a window of information on the company's current financial condition. The function of financial statements is very important to make financial reports as a target of manipulation by individuals who have the intention to commit fraud. Not a few cases of financial statement fraud caused by pressure and opportunity factors that have actors. This study aims to analyze the effect of variables from the diamond fraud theory proposed by Wolfe and Hermanson (2004), namely financial targets, financial stability, external pressure, nature of industry, ineffective monitoring, change in auditor, total accrual and capability of financial statements fraud proxied by the f-score model. This research focuses on state-owned companies because state-owned companies have enormous potential for fraud and corruption. In this study the sample used is 15 non-bank SOE companies that have been listed on the Indonesia Stock Exchange (IDX) in the 2011-2017 period. The type of data used is secondary data in the form of annual reports of BUMN companies that have been listed on the Indonesia Stock Exchange during the period 2011-2017. Hypothesis testing is done by using multiple linear regression methods. The results of this study indicate that the financial target variable which is proxied by return on assets is proven to have a positive effect in detecting financial statement fraud. The external pressure variable which is proxy by leverage ratio is proven to have a negative effect in detecting fraudulent financial statements. This study does not prove that financial stability, ineffective monitoring, nature of the industry, total accruals, change in auditors and capability have an influence in detecting financial statement fraud. The results of this study also prove that the factor that greatly influences the financial statement of fraud is the pressure factor. Therefore, it can be concluded that the variables in diamond fraud can be used in detecting financial statement fraud.

Exterminating Corruption in Nigeria: <i>The Cressey’s Approach</i>

The two objectives set for this research were to assess how well, the Cressey’s hypothesis, also known as fraud triangle theory, can explain the reasons behind corruption in Nigerian institutions, and to assess the significance of capability from the fraud diamond theory, towards the detection and prevention of corruption in Nigeria. The researcher adopts a critical review approach of past literature. From the conclusion reached, two recommendation for successful eradication of corruption in Nigeria are: (1) to adopt the Cressey’s fraud triangle approach as well as the fraud diamond to fight corruption (in micro level), from organization to organization and (2), to adopt a more fundamental approach similar to the Hong Kong’s Two-Pronged approach to improve overall accountability and fight opportunity for corruption from a wider macro level. Suggested step for the federal government of Nigeria to successfully fight corruption at a macro level, is to merge the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC) to form one single and properly resourced independent corruption fighting agency, similar to that of Hong Kong’s Independent Commission Against Corruption (ICAC).

FRAUD DIAMOND THEORY DAN KUALITAS PENGELOLAAN KEUANGAN DENGAN MODERASI SISTEM PENGENDALIAN INTERNAL

Regional financial management is a key element in good governance. The preparation of financial statements based on government accounting standards is a form of quality financial statement management. It can shows the performance of government that always realizes transparency and accountability of local governments. This study aims to examine the effect of fraud diamond theory on the quality of financial management with an internal control system as a moderating variable. This study uses quantitative methods and data samples of 90 employees in the Regional Apparatus Organization (Organisasi Perangkat Daerah – OPD) Malang City, East Java, with a purposive sampling technique based on criteria. Data analysis using Path Analysis techniques. The results showed that pressure, opportunity, rationalization and ability affect the quality of financial management. While the internal control system is not able to strengthen or weaken the influence of pressure, opportunity, rationalization and ability to the quality of financial management.

DETECTION ANALYSIS ON FRAUDULENT FINANCIAL REPORTING USING FRAUD SCORE MODEL

This study aims to examine the elements of fraud in the fraud diamond theory. Fraud is proxied by seven variables consisting of three pressure elements namely financial target, financial stability, external pressure, two variables of opportunity element, namely effective monitoring and nature of industry, one variable from the rationalization element, namely change in auditor, one variable from capability element namely change in directors, which is hypothesized to affect financial statements fraud. This study uses earnings management to see the potential for fraudulent financial statements. Earning management is measured using the F-Score indicator. The research sample was selected using a purposive sampling method from 30 manufacturing companies and a research period of 5 years to obtain the number of sample units of 155 data which is listed on the Indonesia Stock Exchange (IDX) for the period of 2013 to 2017. The hypothesis testing used a multiple regression analysis model using SPSS 23. The results of the study indicate that financial targets and changes in auditor financial stability have a significant positive effect on fraudulent financial statements. While external pressure, effective monitoring, nature of industry, financial stability, change of directors, have no effect on financial statements fraud.

Analisis Fraud Diamond Theory dalam Mendeteksi Terjadinya Manajemen Laba pada Laporan Keuangan Perusahaan

<p>Penelitian ini bertujuan untuk menguji elemen-elemen fraud dalam teori <em>fraud diamond</em> terhadap indikasi adanya manipulasi laporan keuangan yang dipresentasikan dengan manajemen laba pada perusahaan pembiayaan di Indonesia tahun 2014-2018. Variabel independen yang digunakan dalam penelitian ini adalah kestabilan keuangan, kepemilikan institusional, kualitas auditor eksternal,� pengawasan yang efektif, pergantian auditor eksternal, rasio total akrual terhadap total aset, perubahan direksi dan jumlah komisaris independen, sedangkan variabel dependen yang digunakan adalah manipulasi laporan keuangan yang diproksikan dengan manajemen laba. Penelitian ini menggunakan 75 sampel yang berasal dari 15 perusahaan pembiayaan yang terdaftar di Bursa Efek Indonesia pada tahun 2014-2018. Penelitian ini dilakukan dengan metode kuantitatif menggunakan data sekunder. Analisis data menggunakan model regresi berganda berbasis data panel, dan menggunakan ukuran perusahaan, leverage serta umur perusahaan sebagai variabel kontrol. Hasil dari penelitian ini menunjukkan bahwa terdapat tiga variabel yang berpengaruh signifikan dalam mendeteksi terjadinya manipulasi laporan keuangan, antara lain kestabilan keuangan, rasio total akrual terhadap total aset, dan jumlah dewan komisaris independen. Variabel tersebut merepresentasikan tiga elemen dalam <em>fraud diamond theory</em> yaitu kestabilan keuangan mempresentasikan elemen tekanan, rasio total akrual terhadap total aset mempresentasikan elemen rasionalisasi dan jumlah dewan komisaris independen mempresentasikan elemen kompetensi.</p><p><strong><em><br /></em></strong><strong><em></em></strong></p><p><strong>�</strong></p>

KECURANGAN AKADEMIK PADA MAHASISWA AKUNTANSI BERDASARKAN PERSPEKTIF FRAUD DIAMOND

The purpose of this research is to examine which factors that drive students especially that majoring in accounting, commit academic dishonesty based on fraud diamond theory and refers to (Sabli, Hamid, Haron, & Wahab, 2018) research. Based on all initial research, we can see that there are many inconsistent results from many universities. The sampling method that we use for this research is purposive sampling using questionnaires. The object of this research is Undergraduate Accounting Student from one of the Public University in Tangerang (XYZ) from the second to the eighth semester (2015-2018 batch), within the total of 260 respondents. Those data samples are processed with Structural Equation Model (SEM). The result of this research shows that only rationalization has positive significant correlation to academic dishonesty. The model of this research is proven to fulfill the goodness-of-fit, unidimensionality, and reliability standard. The result is adequate to provide input about the importance of maintaining integrity, especially because most of these students will become an accountant in the future.
 Keywords: Fraud diamond, academic dishonesty, accounting student

Detection of Fraudulent Financial Statement; Can Perspective of Fraud Diamond Theory be applied to Property, Real Estate, and Building Construction Companies in Indonesia?

The increasing number of cases related to accounting scandals in the world has caused various parties to assume that management has commited fraudulent financial statement. Detection of fraudulent financial statements must be carried out so it can be prevented fraud and the possibility of a scandal is prolonged. This research examines the effects of pentagon fraud theory (pressure, opportunity, rationalization, competence and arrogance toward fraudulent financial statement: The property, real estate and building construction companies listed on Indonesia Stock Exchange (IDX) in 2014-2018 periods The data used were the secondary data based on the purposive sampling method, the number of companies were 29 companies with 5 years observation. Based on logistic regression analysis, pressure has an impact on fraudulent financial statements on the significant value of 0.045. Opportunity has no impact on fraudulent financial statements on the significant value of 0.077. Rationalization has no impact on fraudulent financial statements on the significant value of 0.291. Competence has no impact on fraudulent financial statements on the significant value of 0.107. Arrogance has an impact on fraudulent financial statements on the significant value of 0.001.

Diamond fraud analysis in detecting financial statement fraud


 This study aims to analyze the influence of variable pressure proxied by financial stability, personal financial need, financial targets, external pressure, the opportunity proxied by nature of the industry, ineffective monitoring, rationalization, and capability of the financial statement fraud. The sample used 72 manufactured company listing on the Indonesia Stock Exchange during the 2014-2017 period. Multiple linear regression test is used to test the influence of the independent variable on the dependent variable. The result showed that financial stability, the ratio of the change in total assets, and external pressure, as measured by leverage, showed an influence on financial statement fraud while the personal financial need, financial targets, nature of industry, ineffective monitoring, rationalization, and capability does not influence financial statement fraud.

KECURANGAN LAPORAN KEUANGAN DALAM PERSPEKTIF FRAUD DIAMOND THEORY: STUDI EMPIRIS PADA PERUSAHAAN SUB SEKTOR TRANSPORTASI DI BURSA EFEK INDONESIA

This study aims to obtain empirical evidence in detecting fraudulent financial statements from the perspective of 'fraud diamond theory'. The proxy variables used in this study are the influence of pressure, opportunity, rationalization, and ability. This study uses a sample of transportation sub-sector companies listed on the Indonesia Stock Exchange (IDX) with the 2015-2017 research period. This research is expected to contribute to the development of accounting science, especially in the field of forensic accounting regarding factors that can affect companies to conduct fraudulent financial statements by implementing indicators of diamond fraud. Hypothesis testing used multiple linear regression analysis with the help of application eviews software, to help process research data in the form of panel data. The results of this study indicate that pressure, opportunity, rationalization, and ability together were not significantly influence the tendency of fraudulent financial statements.