Analysis of Pentagon Fraud Determinants in Detecting Fraudulent Financial Statements of Banking Sector Companies Listed on the Indonesian Stock Exchange

  • Hasbi Hasbi IAIN Bone
  • Andi Ajeng Tenri Lala IAIN Bone
  • Asgar Asgar IAIN Bone
Keywords: Banking, Fraud, Fraudulent Financial Statements.

Abstract

Fraudulent financial statements refer to intentional negligence or errors in the preparation of financial statements, where the presentation of these statements deviates from established accounting principles. One of the theories that explain the occurrence of fraud is the Fraud Pentagon Theory. This study aims to analyze the impact of financial targets, financial stability, external pressure, ineffective monitoring, industry nature, and auditor changes on fraudulent financial statements, both partially and simultaneously. The data used in this study is secondary data, and the sampling method applied is purposive sampling. The subject of this research consists of financial information from banking sector companies listed on the Indonesia Stock Exchange during the 2018-2022 period. A total of 10 banking companies over 5 years resulted in 50 samples. The analysis techniques employed include quantitative analysis, specifically descriptive analysis, static panel data analysis, model selection, and hypothesis testing, using Eviews 10 and 12 software. The study's findings indicate that the variables of Financial Targets, Financial Stability, Ineffective Monitoring, and Nature of Industry do not significantly affect fraudulent financial statements. Conversely, the variables of External Pressure and Changes in Auditors have a positive impact on fraudulent financial statements. Simultaneously, all six independent variables collectively influence fraudulent financial statements. Consequently, alternative solutions are needed to address fraud, such as the implementation of stricter policies related to auditing and financial transparency. These measures can help minimize external pressures that encourage fraud, while the effective implementation of sustainable development goals can play a role in preventing fraud.

References

Agusputri, Hanifah, Sofie Sofie, and others. 2019. “Faktor-Faktor Yang Berpengaruh Terhadap Fraudulent Financial Reporting Dengan Menggunakan Analisis Fraud Pentagon.” Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik 14 (2): 105–24.

Annisyah, Annisyah, and Novita Sari. 2023. “Fraud Hexagon Pada Fraudulent Financial Reporting.” AT-TAWASSUTH: Jurnal Ekonomi Islam 8 (2): 296–311.

Aviantara, Ryan. 2021. “The Association Between Fraud Hexagon and Government’s Fraudulent Financial Report.” Asia Pacific Fraud Journal 6 (1): 26–42.

Barezki, M Bagus, Luk Luk Fuadah, and Anna Yulianita. 2023. “Relevansi Fraud Hexagon Theory Terhadap Kecurangan Laporan Keuangan Pada Sektor Perbankan Di Indonesia Tahun 2017-2021.” Jurnal Informatika Ekonomi Bisnis, 927–31.

Bawekes, Helda F, Aaron M A Simanjuntak, and Sylvia Christina Daat. 2018. “Pengujian Teori Fraud Pentagon Terhadap Fraudulent Financial Reporting.” Jurnal Akuntansi Dan Keuangan Daerah 13 (1): 114–34.

Bawekes, Helda F, Aaron MA Simanjuntak, and Sylvia Christina Daat. 2018. “Pengujian Teori Fraud Pentagon Terhadap Fraudulent Financial Reporting (Studi Empiris Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2011-2015).” Jurnal Akuntansi & Keuangan Daerah 13 (1): 114–34.

Fabiolla, Ruth Grace, Wahyu Ari Andriyanto, and Wisnu Julianto. 2021. “Pengaruh Fraud Pentagon Terhadap Fraudulent Financial Reporting.” Konferensi Riset Nasional Ekonomi Manajemen Dan Akuntansi 2 (1): 981–95.

Fitriyanti, Inayah, and Fatchan Achyani. 2024. “Pengaruh Faktor Resiko Fraud Hexagon, Corporate Governance, Dan Kualitas Audit Terhadap Pelaksanaan Fraudulent Financial Reporting.” Management Studies and Entrepreneurship Journal (MSEJ) 5 (2): 6654–72.

Ginting, Dhanka Brianta, and Daljono Daljono. 2023. “Analisis Pengaruh Fraud Hexagon Terhadap Fraudulent Financial Reporting Menggunakan Metode Beneish M-Score (Studi Empiris Pada Sektor Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2019-2021).” Diponegoro Journal of Accounting 12 (3).

Hadi, M Soelung Wicaksono, Dwi Jaya Kirana, and Aniek Wijayanti. 2021. “Pendeteksian Fraudulent Financial Reporting Dengan Fraud Hexagon Pada Perusahaan Di Indonesia.” In Prosiding BIEMA (Business Management, Economic, and Accounting National Seminar), 2:1036–52.

Hidayatun, Fitri, and Agung Juliarto. 2019. “Fraud Triangle Dan Fraud Diamond Model Dalam Prediksi Kecurangan Laporan Keuangan.” Diponegoro Journal of Accounting 8 (4).

Irhamsyah, Fahmi. 2019. “Sustainable Development Goals (SDGS) Dan Dampaknya Bagi Ketahanan Nasional.” Jurnal Lemhannas RI 7 (2): 45–54.

Khalid, Maizatul, Md Mahmudul Alam, and Jamaliah Said. 2016. “Empirical Assessment of Good Governance in the Public Sector of Malaysia.” Maizatul, AK, Alam, MM, and Said, J, 289–304.

Nasution, Gong Matua, Dy Ilham Satria, Razif Razif, and Rayyan Firdaus. 2024. “Analisis Pengaruh Fraud Hexagon Terhadap Fraudulent Financial Reporting Menggunakan Beneish Ratio Index Pada Perusahaan Asuransi Yang Terdaftar Di BEI 2017-2021.” Jurnal Akuntansi Malikussaleh (JAM) 3 (1): 47–67.

Nugraha. 2021. “Pressure and Opportunity in Financial Statement Fraud Detection : The Application of Pentagon Fraud in Indonesian Banks.” Journal of Accounting and Auditing 10 (2): 122–38. https://doi.org/https://doi.org/10.1016/j.jaa.2021.09.010.

Octani, Jihan, Anda Dwiharyadi, and Dedy Djefris. 2022. “Analisis Pengaruh Fraud Hexagon Terhadap Fraudulent Financial Reporting Pada Perusahaan Sektor Keuangan Yang Terdaftar Di Bursa Efek Indonesia Selama Tahun 2017-2020.” Jurnal Akuntansi, Bisnis Dan Ekonomi Indonesia (JABEI) 1 (1): 36–49.

Putri, Arshinta Chandra, and Sugi Suhartono. 2023. “Kemampuan Kualitas Audit Memoderasi Pengaruh Praud Hexagon Terhadap Fraudulent Financial Statements.” Jurnal Bina Akuntansi 10 (2): 732–57.

Rahma, Natasya Navila, and Shinta Permata Sari. 2023. “Detection of Fraud Financial Statements through the Hexagon Model Vousinas Fraud Dimensions: Review on Jakarta Islamic Index 70.” International Journal of Latest Research in Humanities and Social Science (IJLRHSS) 6 (01): 152–59.

Rahman, and Setiawan. 2022. “The Role of Corporate Governance in Minimizing Financial Statement Fraud: Evidence from the Indonesian Banking Sector.” Indonesian Journal of Accounting Research 17 (4): 54–70. https://doi.org/https://doi.org/10.1016/j.ijar.2022.10.004.

Sasongko, Noer, and Sangrah Fitriana Wijayantika. 2019. “Faktor Resiko Fraud Terhadap Pelaksanaan Fraudulent Financial Reporting (Berdasarkan Pendekatan Crown�s Fraud Pentagon Theory).” Riset Akuntansi Dan Keuangan Indonesia 4 (1): 67–76.

Septiyanto, and Wicaksono. 2023. “Application of the Pentagon Fraud Model in Detecting Financial Statement Fraud in Indonesian Banks.” Journal of Financial Forensics 12 (3): 201–16. https://doi.org/https://doi.org/10.1016/j.jff.2023.07.011.

Siregar, and Hartanto. 2020. “Analyzing Financial Fraud in Indonesian Banks Using Fraud Triangle and Pentagon Models.” Journal of Banking and Finance Studies 15 (1): 80–96

Utami, Clarisa Dzikri Antini Putri, and Suyatmin Waskito Adi. 2024. “Analisis Deteksi Fraudulent Financial Reporting Perusahaan Manufaktur Barang Konsumsi Di Bursa Efek Indonesia Tahun 2020-2022.” ISOQUANT: Jurnal Ekonomi, Manajemen Dan Akuntansi 8 (1): 110–20.

Wijaya. 2019. “Pentagon Fraud Analysis in Detecting Fraudulent Financial Reporting in Indonesian Public Companies.” Journal of Financial Analysis 14 (2): 143–59. https://doi.org/https://doi.org/10.1016/j.jfa.2019.04.006.

Published
2024-12-30
Section
Articles