Financial statements describe the company's financial condition. There are many gaps in the financial reports that enable management to commit fraudulent financial reporting. This study purpose to analyze the pentagon fraud, namely the pressure that is proxied by the financial target, the opportunity that is proxied by the effectiveness of monitoring (ineffective monitoring); Rationalization which is proxied by change in auditor; Competence which is proxied by the change of company directors; and Arrogance which is proxied by the number of CEO images that appear (number of CEO's picture), detects fraudulent financial statements measured using the Altman Z Score. The sample used in this study were 24 pharmaceutical sub-sector manufacturing companies registered on the Indonesia Stock Exchange during the period 2015 until 2017. The type of data used is secondary data obtained from annual reports and company financial statements for the 2015-2017 period. The analysis of the data used is multiple regression using the SPSS version 16. This study found that financial stability and ineffective monitoring influence fraudulent financial statements. Whereas auditor turnover, change of directors and the number of CEO photos that appear do not affect fraudulent financial statements.
Objective – The massive and broad impact caused by fraud has made it widely discussed by researchers. Several theories have been developed to explain the cause of fraud. The most recent theory that attempts to explain fraud is pentagon fraud. This study attempts to explain the effect of pentagon fraud on the detection of financial statement fraud in 624 companies listed on the Indonesian stock exchange. Methodology/Technique – Data from financial statements published in 2018 were analyzed using multiple regression analysis. Findings – The results of data analysis using E-Views have proven that Pressure, Opportunity, Arrogance and Rationalization have a negative effect on fraudulent financial reporting. However, competence is known to have no significant effect on fraudulent financial reporting. Novelty – The results suggest that human factors such as pressure, arrogance and rationalization encourage fraudsters to produce fraudulent financial reports. These findings imply that human factors such as pressure arrogance and rationalization are important to be considered in designing any anti-fraud strategy. Type of Paper: Empirical Keywords: Fraud Pentagon; Fraudulent Financial Report; Opportunity, Pressure. Reference to this paper should be made as follows: Nanda; S, T; Zenita R; Salmiah N; 2019. Fraudulent Financial Reporting: A Fraud Pentagon Analysis, Acc. Fin. Review 4 (4): 106 – 113. https://doi.org/10.35609/afr.2019.4.4(2) JEL Classification: M40, M41, M49.
Program pengabdian kepada masyarakat ini bertujuan untuk meningkatkan wawasan masyarakat Desa Buluhcina tentang potensi wisata yang dapat dikembangkan serta peningkatan pengetahuan mempromosikan Desa Wisata Buluhcina melalui media sosial sehingga Desa tersebut menjadi maju dan mandiri serta kesejahteraan masyarakat meningkat. Permasalahan mitra adalah belum dikembangkannya potensi wisata yang dimiliki serta belum mempromosikan desa wisata secara optimal. Hal ini tentu saja berdampak pada rendahnya minat wisatawan berkunjung ke Desa Wisata Buluhcina. Khalayak sasaran adalah perangkat desa beserta masyarakat Desa Buluhcina. Solusi yang dilakukan adalah dengan memberikan penyuluhan dalam rangka peningkatan wawasan terkait pengembangan potensi wisata yang ada di Desa Buluhcina dan meningkatkan pengetahuan dalam mempromosikan wisata Desa Buluhcina melalui media sosial. Hasil yang dicapai adalah peningkatan wawasan peserta terhadap potensi wisata yang dapat dikembangkan di Desa Buluhcina dan peningkatan pengetahuan dalam mempromosikan wisata Desa Buluhcina melalui sosial media. Hal ini dapat dilihat dari antusiasme peserta pada saat pelaksanaan serta peningkatan hasil pre-test.[This program of community service aims to improve the insight of the community of Buluhcina Village about the potential of tourism that can be developed as well as increased knowledge of promoting the Village of Buluhcina through social media so that the village becomes advanced and independent and the welfare of society increases. Partner problems are not yet developed the tourism potential that is owned and has not promoted the tourist village optimally. This of course affects the low interest of tourists visiting the Tourism Village Buluhcina. The target audience is a village device along with the people of Buluhcina Village. The solution is to provide counseling in order to increase the insight related to the development of tourism potential in Buluhcina Village and increase the knowledge in promoting Buluhcina Village tourism through social media. The results achieved are increasing participants' insight into tourism potentials that can be developed in Buluhcina Village and increased knowledge in promoting the tourism of Buluhcina Village through social media. This can be seen from the enthusiasm of participants at the time of execution and improvement of pre-test results.]
The community service program aims to provide knowledge to the village government and village community about the potential of Tanah Merah Village and assistance in mapping the potential of the village. With this service activity, it is expected that the knowledge of the village government and the village community about the potential of the village owned will increase so that the results of the village discussion will be decided upon which business units will be formed to develop the Tamer Mandiri BUMDes business unit. The method used in this activity is to conduct pre-test, counseling, simulation, question and answer, post test, and evaluation. The results of the community service activities are as expected, namely an increase in knowledge of village potential mapping and an understanding that each village must have the potential to be developed into the BUMDes Tamer Mandiri business unit.
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