Procedia of Social Sciences and Humanities
Vol. 1 (2021): Proceedings of the 2nd International Conference On Intelectuals Global Responsibility (ICIGR 2020)
Articles

Analysis of The Influence of Pentagon Fraud in Detecting Financial Statement Fraud Using Method F- Score

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  • Vina Yusniarti,
  • Henny Mulyati,
  • Amrizal Amrizal
Vina Yusniarti
Institut Teknologi dan Bisnis Ahmad Dahlan
Henny Mulyati
Institut Teknologi dan Bisnis Ahmad Dahlan
Amrizal Amrizal
Institut Teknologi dan Bisnis Ahmad Dahlan
DOI: https://doi.org/10.21070/pssh.v1i.42
Published March 28, 2021
Keywords
  • Financial Statement Fraud,
  • Pentagon Fraud
How to Cite
Yusniarti, V., Mulyati, H., & Amrizal, A. (2021). Analysis of The Influence of Pentagon Fraud in Detecting Financial Statement Fraud Using Method F- Score. Procedia of Social Sciences and Humanities, 1, 40-56. https://doi.org/10.21070/pssh.v1i.42
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Abstract

This study aims to examine the elements of fraud in the  fraud  pentagon theory in detecting financial statement fraud. Pentagon fraud is variables from the pressure element, opportunity, rationalization, capability, and elements of arrogance, namely political relationships which are hypothesized to affect financial statement fraud. The F-Score method is used to determine financial statement fraud. This research  sample was selected using the purposive sampling method from 47 manufacturing companies in the basic industry and chemicals industry listed on the Indonesia Stock Exchange (BEI) in the period 2015 to 2019. Hypothesis testing uses multiple regression analysis models using SPSS 22 to test the effect of the target. finance, financial stability, external pressure, institutional share ownership, ineffective supervision,  influence on  the nature of the industry, quality of external auditors, replacement of auditors, change of directors and political relations to financial statement fraud. The results showed that the quality of external auditors and auditor turnover had a significant positive effect on financial statement fraud. Meanwhile, financial targets, financial stability, external pressure, institutional share ownership, ineffective supervision, the influence of the nature of the industry, the change of directors, and political relations have no effect on financial statement fraud.

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