IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v11y2022i6p402-409.html
   My bibliography  Save this article

Role of forensic accounting in the diamond model relationship to detect the financial statement fraud

Author

Listed:
  • I Wayan Widnyana

    (Universitas Mahasaraswati Denpasar)

  • Sapta Rini Widyawati

    (Universitas Mahasaraswati Denpasar)

Abstract

Fraudulent financial statements often occur in several companies, however, efforts to detect the beginning of fraud have not been fully implemented. The purpose of this study is to determine the role of forensic accounting in the diamond model relationship to detect financial statement fraud. This research employs pressure, opportunity, rationalization, and capability in the perspective of fraud diamond, and technology audit as forensic accounting indicators. Samples used in this study are 42 bank companies listed on Indonesia Stock Exchange (IDX) during the period 2016-2019. The sample is determined by using the purposive sampling method. Analysis of data is carried out using the MRA-SPSS program. The result showed that Pressure and Rationalization affect financial statement fraud. Forensic accounting is a moderating variable between pressure and financial statement fraud, rationalization, and financial statement fraud. Key Words:Financial Statement Fraud, Fraud Diamond Model, Forensic Accounting

Suggested Citation

  • I Wayan Widnyana & Sapta Rini Widyawati, 2022. "Role of forensic accounting in the diamond model relationship to detect the financial statement fraud," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 402-409, September.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:6:p:402-409
    DOI: 10.20525/ijrbs.v11i6.1924
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/1924/1422
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v11i6.1924
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v11i6.1924?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rabi’u Abdullahi & Noorhayati Mansor, 2015. "Fraud Triangle Theory and Fraud Diamond Theory. Understanding the Convergent and Divergent For Future Research," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(4), pages 38-45, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bello Umar & Umar Abbas Ibrahim & Peter Eriki, 2020. "Forensic Accounting and Incidence of Fraud Detection: Evidence from Nigeria," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 72-81, April.
    2. V.U. Imagbe & T.O. Abiloro & G.A. Saheed, 2019. "Fraud Diamond and Financial Crimes in Nigerian Banking Industries," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(4), pages 294-303, October.
    3. Haiquan Wu & Wenli Liao & Zhifang Zhou & Yi Li, 2021. "Can Financial Constraints and Regulatory Distance Reduce Corporate Environmental Irresponsibility?," Sustainability, MDPI, vol. 13(23), pages 1-25, November.
    4. Abbas, Ahmad, 2017. "Earnings Fraud and Financial Stability," OSF Preprints f5jpx, Center for Open Science.
    5. Williams Kwasi Peprah, 2018. "Predictive Relationships among the Elements of the Fraud Diamond Theory: The Perspective of Accountants," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 141-148, July.
    6. Daniel N Mlambo & Mandla A Mubecua & Siphesihle Edmund Mpanza & Victor H Mlambo, 2019. "Corruption and Its Implications for Development and Good Governance: A Perspective from Post-Colonial Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 11(1), pages 39-47.
    7. Alhumoudi Hamad & Alhumoudi Abdullah, 2023. "The Role of Forensic Accountants in Fraud and Corruption Cases and Its Impact on Business Development: The Case of Saudi Arabia," Journal of Forensic Accounting Profession, Sciendo, vol. 3(2), pages 13-36, December.
    8. Olukayode Abayomi Sorunke, 2016. "Personal Ethics and Fraudster Motivation: The Missing Link in Fraud Triangle and Fraud Diamond Theories," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(2), pages 159-165, February.
    9. Yustiana Djaelani & Zainuddin Zainuddin & Rena Mustari Mokoginta, 2022. "Academic fraud of students in the Covid-19 period: Testing with the Pentagon's fraud dimension," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 414-422, March.
    10. Madzivire E.T & Nyamwanza L & Mushonga W & Takachicha M. T & Mulonda D, 2020. "An Investigation on the Effectiveness of Forensic Audit as a Tool for Fraud Detection and Prevention," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 10(2), pages 49-67.
    11. Intiyas Utami & Yosephine Widwining Astiti & Nafsiah Mohamed, 2019. "Fraud Intention and Machiavellianism: An Experimental Study of Fraud Triangle," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 269-279, August.
    12. Nor Balkish Zakaria & Muhammad Farhan Nordin & Rahimah Mohamed Yunos & Jamaliah Said, 2019. "The Integrity of Local Enforcement Officers: Self Proclaim vs Colleague Perception," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 288-300, August.
    13. Rodgers, Waymond & Al Shammakhi, Badriya N. & Jeaneth, Johansson & Wincent, Joakim & Adams, Kweku, 2020. "DIY Entrepreneurship: a decision-pathway framework for ethical thought structures," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    14. Citra Sukmadilaga & Srihadi Winarningsih & Tri Handayani & Eva Herianti & Erlane K Ghani, 2022. "Fraudulent Financial Reporting in Ministerial and Governmental Institutions in Indonesia: An Analysis Using Hexagon Theory," Economies, MDPI, vol. 10(4), pages 1-14, April.
    15. Khalil Feghali & Reine Najem & Beverly Dawn Metcalfe, 2022. "Financial Auditing During Crisis: Assessing and Reporting Fraud and Going Concern Risk in Lebanon," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 21(4), pages 575-603, December.
    16. Yao, Shouyu & Zhao, Weijia & Sensoy, Ahmet & Cheng, Feiyang & Goodell, John W., 2021. "The dark side of marital leadership: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 77(C).
    17. Dr. Solomon Abeki, 2023. "Internal Control System and Financial Statement Fraud of Quoted Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1158-1200, September.
    18. Alina (Chiriac) Matei & Kamer-Ainur Aivaz, 2023. "Exploratory Analysis of Assets Nonconformities in Financial Statements," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 978-985, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:11:y:2022:i:6:p:402-409. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.