What Factors Affecting Auditors’ Fraud Tendency Perception? Fraud Pentagon Theory Perspective
Abstract
This research aims to analyze the influence of the pentagon fraud theory, which consists of pressure, opportunity, rationalization, competence, and arrogance, on auditors' perceptions of fraud tendencies. The sample for this research is 153 auditors who work at the Regional Inspectorate of Central Java Province. This type of research is quantitative research. The data analysis technique uses Partial Least Square (PLS). Data was processed using SmartPLS software version 3.29. The results of this research are that pressure, opportunity and rationalization do not have a significant effect on the auditor's perception of fraud tendencies, while competence and arrogance have a significant effect on the auditor's perception of fraud tendencies.
Downloads
References
ACFE. (2020). Report to the nations 2020 global study on occupational fraud and abuse.
ACFE Indonesia. (2019). Survei fraud Indonesia 2019.
Adebisi, J. (2013). The New Fraud Diamond Model-How Can It Help Forensic Accountants In Fraud Investigation In Nigeria? Gbegi, DO. European Journal of Accounting Auditing and Fiancé Research, 1(4), 129–138.
Apriliana, S., & Agustina, L. (2017). The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach. Jurnal Dinamika Akuntansi, 9(2), 154–165.
Christian, N., Basri, Y. Z., & Arafah, W. (2019). Analysis of Fraud Triangle , Theory to Detecting Corporate Fraud in Indonesia. The International Journal of Business Management and Technology, 3(4), ISSN 2581-3889.
Crowe, H. (2011). Why the Fraud Triangle is No Longer Enough. http://www.s-ox.com/dsp_getWebinarDetails.cfm?CID=2668
DeZoort, F. T., & Harrison, P. D. (2018). Understanding Auditors’ Sense of Responsibility for Detecting Fraud Within Organizations. Journal of Business Ethics, 149, 857–874. https://doi.org/10.1007/s10551-016-3064-3
Faradiza, S. A. (2019). Fraud Pentagon Dan Kecurangan Laporan Keuangan. EkBis: Jurnal Ekonomi Dan Bisnis, 2(1), 1. https://doi.org/10.14421/ekbis.2018.2.1.1060
Fitri, F. A., Syukur, M., & Justisa, G. (2019). Do the fraud triangle components motivate fraud in Indonesia? Australasian Accounting, Business and Finance Journal, 13(4), 63–72. https://doi.org/10.14453/aabfj.v13i4.5
Ghozali, I., & Latan, H. (2015). Konsep, Teknik, Aplikasi Menggunakan Smart PLS 3.0 Untuk Penelitian Empiris. BP Undip.
Handoko, B. L., & Tandean, D. (2021). An Analysis of Fraud Hexagon in Detecting Financial Statement Fraud (Empirical Study of Listed Banking Companies on Indonesia Stock Exchange for Period 2017 – 2019). 2021 7th International Conference on E-Business and Applications, 93–100. https://doi.org/10.1145/3457640.3457657
Kassem, R., & Higson, A. (2012a). The New Fraud Triangle Model. Journal of Emerging Trends in Economics and Management Sciences, 3(3), 191–195. https://doi.org/10.10520/EJC132216
Kassem, R., & Higson, A. (2012b). The New Fraud Triangle Model. Journal of Emerging Trends in Economics and Management Studies, 3.
Kemenkeu. (2018). Ini Putusan Kasus Laporan Keuangan Tahunan PT Garuda Indonesia Tahun 2018. www.kemenkeu.go.id/publikasi/berita/ini-putusan-kasus-laporan-keuangan-%0Atahunan-pt-garuda-indonesia-2018/%0A
Lukman, H., & Harun, V. (2018). Faktor yang mempengaruhi deteksi kecurangan dalam persepsi auditor eksternal dan auditor internal. Jurnal Akuntansi, 22(2), 255. https://doi.org/10.24912/ja.v22i2.351
Mintara, M. B. M., & Hapsari, A. N. S. (2021). Pendeteksian Kecurangan Pelaporan Keuangan Melalui Fraud Pentagon Framework. Perspektif Akuntansi, 4(1), 35–58. https://doi.org/10.24246/persi.v4i1.p35-58
Pamungkas, I. D., Ghozali, I., Achmad, T., Khaddafi, M., & Hidayah, R. (2018). Corporate Governance Mechanisms in Preventing Accounting Fraud: A Study of Fraud Pentagon Model. Journal of Applied Economic Sciences, XIII(56), 549–560.
Peprah, W. K. (2018). Predictive Relationships among the Elements of the Fraud Diamond Theory: The Perspective of Accountants. International Journal of Academic Research in Accounting, Finance and Management Sciences, 8(3), 141–148. https://doi.org/10.6007/ijarafms/v8-i3/4547
Puspitha, M. Y., & Yasa, G. W. (2018). Fraud Pentagon Analysis in Detecting Fraudulent Financial Reporting (Study on Indonesian Capital Market). International Journal of Sciences: Basic and Applied Research, 42(5), 93–109.
PwC’s Global Economic Crime Survey. (2014). Economic Crime: A Treat to Business Globally.
Roszkowska, P. (2021). Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments. Journal of Accounting and Organizational Change, 17(2), 164–196. https://doi.org/10.1108/JAOC-09-2019-0098
Said, J., Alam, M. M., Ramli, M., & Rafidi, M. (2017). Integrating ethical values into fraud triangle theory in assessing employee fraud: Evidence from the Malaysian banking industry. Journal of International Studies, 10(2), 170–184. https://doi.org/10.14254/2071-8330.2017/10-2/13
Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99. In Corporate governance and firm performance (pp. 53–81). Emerald Group Publishing Limited. https://www.emerald.com/insight/content/doi/10.1108/S1569-3732(2009)0000013005/full/html
Utami, D. P. W., & Purnamasari, D. I. (2021). The impact of ethics and fraud pentagon theory on academic fraud behavior. Journal of Business and Information Systems (e-ISSN: 2685-2543), 3(1), 49–59. https://doi.org/10.36067/jbis.v3i1.88
Wolfe, D. T., & Hermanson, D. R. (2004). The Fraud Diamond: Considering the Four Elements of Fraud: Certified Public Accountant. The CPA Journal, 74(12), 38–42.
Copyright (c) 2024 Fakhmi Zakaria, Suhita Whini Setyahuni
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish journals in Equity: Jurnal Ekonomi agrees with the following conditions:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution 4.0 International License.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
3. Every publication (printed/electronic) are open access for educational purposes, research, and library. Other than the aims mentioned above, the editorial board is not responsible for copyright violation.
