Fraud Pentagon dalam Mendeteksi Financial Statement Fraud

Abstract

This research generally aims to analyze the influence of fraud pentagon theory on detecting the financial statement fraud proxied with earning management. Fraud pentagon theory is the development of the previous fraud theory of fraud triangle (Cressey, 1953) and fraud diamond (Wolf and Hermanson, 2004). The purpose of this study is to obtain empirical evidence that the fraud diamond theory influential in detecting financial statement fraud at companies incorporated in the Jakarta Islamic Index (JII) during the year 2014-2015. The sample in this research is 60 companies incorporated in Jakarta Islamic Index. Sampling technique using Purposive Sampling method. Data analysis method used is multiple liniear regression. The results of this study is pressure (financial stability, external pressure, and financial target); Opportunity (nature of industry); Rationalization (change auditor); Competence (change of directors); and arrogance (frequence number of CEO's picture) have an effect to detected financial statement fraud. While pressure (personal financial need); Opportunity (ineffectiveness monitoring, and quality of external audit) haven’t effect in detecting financial statement fraud.