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

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  • 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
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    References listed on IDEAS

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    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.
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