Fraud Pentagon as a Measurement Tool for Detecting Financial Statements Fraud

DOI

10.2991/aebmr.k.200127.017How to use a DOI?

Keywords

financial statement fraud, fraud pentagon, corporate governance

Abstract

Financial statement fraud is a fundamental problem for companies, and it requires various efforts to prove fraud. Companies that are indicated to do financial statement fraud can be one of the reasons for investors to hesitate in investing. Financial statement fraud has a long-term effect that is detrimental to all parties (investors, stakeholders, the company itself, and even to the public). Large companies in Indonesia are not insufficiently involved in financial statement fraud issues and around 50% of negative financial statement actions are carried out by the company’s managers (Iqbal, 2016: 7). The importance of transparent financial statement that is in accordance with the reality and non-manipulative circumstances is what the company needs to have, and the auditor becomes as an independent party that can minimize financial statement fraud. The perspective that will be decomposed from this study used a fraud pentagon analysis, which is considered as an objective benchmark of available historical data.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - K. Fuad
AU  - A.B. Lestari
AU  - R.T. Handayani
PY  - 2020
DA  - 2020/01/31
TI  - Fraud Pentagon as a Measurement Tool for Detecting Financial Statements Fraud
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 85
EP  - 88
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.017
DO  - 10.2991/aebmr.k.200127.017
ID  - Fuad2020
ER  -