The purpose of this study is to determine the impact of book-tax conformity, investment opportunity set, and audit quality to earnings response coefficient. This research is conducted on Indonesian manufacturing company listed in Indonesia Stock Exchange 2016-2018. The data of this research are obtained from the financial statements of the companies and analyzed using multiple linear regression method. The results of this study concluded that book-tax conformity, investment opportunity set, and audit quality have significant impact on earnings response coefficient. These results indicate that investor has consider the conformity between income tax and accounting report, market as well as book value of a company assets, and the quality of an audit that the company proceed.
Nowadays the awareness of loss from fraud has been shifted from blue collared employee theft to white collared management fraudulent statement. Forensic accounting becomes one of the solutions to detect this fraudulent statement. On the basic of our premise, the purpose of research to explore empirical evidence regarding financial statement fraud detection factors with net worth method as control variable. Our independent variables were debt to equity ratio, change in net assets, and return on asset. The research was quantitatively on food and beverage manufacturing companies listed on the Indonesia Stock Exchange. We use financial statement year end audited from 2013-2017. We used purposive sample, when selecting the samples. Total of 55 company reports samples were used in this research. We analyzed the data using statistical multiple linear regression analysis. We used statistical software to do the regression, in order to answer the research questions and test the hypothesis. Fraudulent reporting fraud was examined using proxies Beneish M-score. After the statistical test, this research concludes that financial distress factor proxy Debt to Equity Ratio (DER) has no significant effect on fraud detection. Other factor that is financial stability was proxies by changes in total assets (ACHANGE), and financial targets in the proxy of Return on Assets (ROA) both have significant impact on the detection of financial statement fraud.
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