The Effect of Financial Stability, External Pressure, and Ineffective Monitoring of Fraudulent Financial Statement

DOI

10.2991/icaess-19.2019.6How to use a DOI?

Keywords

Financial Report Fraud; Triangle Fraud; Financial Stability; External Pressure; Ineffective Monitoring; Beneish M-Score

Abstract

Financial report fraud is an unavoidable matter and can be found on various factors that can cause losses to interested parties. This study aims to examine the effect of financial stability, external pressure, and monitoring factors that are not effective against fraudulent financial statements. The data in this study are secondary data with a sample of research, namely manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2017 which are determined using purpose sampling technique. The total sample of the study was 256 companies, namely 143 companies indicated by fraud and 113 companies indicated as non-fraud. The test results show that there is an influence between financial stability and external pressure on fraudulent financial statements and can be used to detect fraud, while ineffective monitoring does not affect fraudulent financial statements and cannot be used to detect fraud. This study has limitations in processing data, at least years of observation, and at least research variables, so further research is expected to develop based on the limitations of this study.

Copyright

© 2019, 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  - Sinarti
AU  - Raja Irma Nuraini
PY  - 2019/12
DA  - 2019/12
TI  - The Effect of Financial Stability, External Pressure, and Ineffective Monitoring of Fraudulent Financial Statement
BT  - Proceedings of the 1st International Conference on Applied Economics and Social Science (ICAESS 2019)
PB  - Atlantis Press
SP  - 327
EP  - 331
SN  - 2352-5398
UR  - https://doi.org/10.2991/icaess-19.2019.6
DO  - 10.2991/icaess-19.2019.6
ID  - 2019/12
ER  -