FRAUD HEXAGON THEORY DALAM MENDETEKSI KECURANGANLAPORAN KEUANGAN

Abstract

This research aimed to examine the fraud hexagon theory in detecting financial statements fraud. Moreover, the population was Food and Beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2018-2021. The research was quantitative. Furthermore, the data collection technique used purposive sampling. Based on the determined criteria it obtained 48 samples from 12 companies. Additionally, the data analysis technique used multiple linear regression. The research result showed that financial target, change in auditor, change in director, and a frequent number of CEO’s pictures did not affect the financial statements fraud of Food and Beverage manufacturing companies. On the other hand, both financial stability and the nature of the industry had a negative effect on the financial statements fraud of Food and Beverage manufacturing companies. In contrast, the ineffective monitoring, political connection, and government project had a positive effect on the financial statements frauds of Food and Beverage manufacturing companies.