Department of Accounting, Faculty of Economics and Business, Universitas Udayana, Indonesia.
Research Article
World Journal of Advanced Research and Reviews, 2024, 24(02), 1525–1538
Received on 06 October 2024; revised on 14 November 2024; accepted on 16 November 2024
This study aims to analyze the effect of the fraud pentagon theory components on financial statement fraud with the quality of the audit committee as a moderator. This study was conducted on banking sector companies listed on the IDX in 2012-2022. The population of this study was all banking sector companies listed on the IDX, totaling 47 banks. The sampling method used purposive sampling which resulted in 23 companies used as samples. Data analysis was carried out on secondary data using the SEM-PLS analysis technique. The results of this study indicate that financial stability and managerial ownership have a positive effect on financial statement fraud in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2012-2022 period. Furthermore, the board of commissioners has a significant (real) negative effect on financial statement fraud in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2012-2022 period, while changes in auditors are unable to affect the presence or absence of financial statement fraud in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2012-2022 period. Furthermore, the quality of the audit committee is a moderating variable that weakens the influence of financial stability and managerial ownership on financial statement fraud in banking companies listed on the Indonesia Stock Exchange (IDX) for the period 2012-2022. Meanwhile, the quality of the audit committee is a moderating variable that strengthens the negative influence of the board of commissioners on financial statement fraud. However, the quality of the audit committee cannot moderate the effect of auditor changes on financial statement fraud. This means that the presence or absence of audit committee quality cannot weaken or strengthen the effect of auditor changes on financial statement fraud.
Financial statement fraud; Fraud pentagon theory; Audit committee; Banking; Fraud
Preview Article PDF
Kadek Hira Mahandari, Gayatri, Anak Agung Gde Putu Widanaputra and I Dewa Nyoman Badera. Determinants of financial statement fraud in banking companies. World Journal of Advanced Research and Reviews, 2024, 24(2), 1525-1538. Article DOI: https://doi.org/10.30574/wjarr.2024.24.2.3485