PENDETEKSI KECURANGAN PELAPORAN KEUANGAN MENGGUNAKAN FRAUD PENTAGON THEORY

Abstract

This research aimed to examine the effect of fraud’s factors of Pentagon’s theory in order to detect financial reporting’s fraud. the factors in fraud pentagon consist of 5 elements, namely Pressure which was referred to financial stability, Opportunity which was referred to nature of industry, Capability which was referred to change of directors, and Arrogance which was referred to frequents number of CEO’s picture. Pentagon theory has 5 independent variabel and dependent variabel (f-score). There independent variables determined used by the pentagon theory to detect fraudulent financial reporting. The research was quantitative. Moreover, there were 35 mining companies which were listed on Indonesia Stock Exchange during 2016-2019; as the sample. Furthermore, the data collection technique used purposive sampling. Additionally, the data analysis technique used multiple linier regression. The research result concluded that the nature of industry, change of directors, and frequents number of CEO’s picture had a significant effect on financial reporting fraud. On the other hand, financial stability, and change in auditor had insignificant effect on financial reporting fraud.
Keywords: fraud pentagon, financial reporting fraud