IDEAS home Printed from https://ideas.repec.org/a/uii/jaaife/v23y2019i1p1-10.html
   My bibliography  Save this article

The Analysis Of The Factor That Causes Fraudulent Financial Reporting With Fraud Diamond

Author

Listed:
  • Ni Komang Astri Yulistyawati
  • I Made Sadha Suardikha
  • I Putu Sudana

    (Faculty of Economics and Business, Udayana University, Bali, Indonesia
    Faculty of Economics and Business, Udayana University, Bali, Indonesia
    Faculty of Economics and Business, Udayana University, Bali, Indonesia)

Abstract

The purpose of this study is to obtain empirical evidence of the influence of the elements of fraud diamond namely: pressure, opportunity, rationalization, and capability on fraudulent financial reporting. The samples in the study were selected by usifigureng a non-probability sampling technique with a purposive sampling method with a total number of samples that met the sample selection criteria of 76 samples, namely 19 manufacturing companies during the four years of the 2011–2014 observation period. The collected data were analyzed by multiple linear regression analysis. Fraudulent financial reporting was measured using Dechow et al's F-Score (2007) which can be included as a first-pass test in evaluating the possibility of manipulation. This research showed that opportunity and rationalization are proven to be fraud diamond elements that most influence the occurrence of fraudulent financial reporting in the companies. While pressure and capability have no effect on fraudulent financial reporting. The implication of this study is that the ratio of total inventory as a proxy for opportunity measurement and the ratio of total accrual to total assets as a proxy for measurement of rationalization has a significant effect on fraudulent financial reporting, meaning that these ratios can be used by management to detect fraudulent financial reporting practices in manufacturing companies.

Suggested Citation

  • Ni Komang Astri Yulistyawati & I Made Sadha Suardikha & I Putu Sudana, 2019. "The Analysis Of The Factor That Causes Fraudulent Financial Reporting With Fraud Diamond," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 23(1), pages 110-110, Juni.
  • Handle: RePEc:uii:jaaife:v:23:y:2019:i:1:p:1-10
    DOI: 10.20885/jaai.vol23.iss1.art1
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JAAI/article/download/10834/9345
    Download Restriction: no

    File URL: https://journal.uii.ac.id/JAAI/article/view/10834/9345
    Download Restriction: no

    File URL: https://libkey.io/10.20885/jaai.vol23.iss1.art1?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
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. ABILORO, Toba Olakunle ACA & OLORUNFEMI, Oladele Ebenezer, 2021. "Determinants of Fraudulent Financial Reporting in Nigeria: Integrating Fraud Triangle Theory Elements," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(12), pages 288-297, December.

    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:uii:jaaife:v:23:y:2019:i:1:p:1-10. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JAAI/ .

    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.