Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)

Fraud Hexagon and Fraudulent Financial Statement: Comparison Between OMI and Beneish Model

Authors
Dwiyanjana Santyo Nugroho1, *, Vera Diyanty2
1Faculty of Economics and Business, Universitas Indonesia
2Faculty of Economics and Business, Universitas Indonesia
*Corresponding author. Email: santyonug@gmail.com
Corresponding Author
Dwiyanjana Santyo Nugroho
Available Online 10 February 2022.
DOI
10.2991/aebmr.k.220204.001How to use a DOI?
Keywords
Hexagon Fraud; Overall Manipulation Index; Fraudulent Financial Statement
Abstract

The leading cause of financial statement fraud (FFS) is a “poor tone” carried out by top parties. This study examines the effect of elements in Hexagon Fraud on FFS. This study uses logistic regression analysis and a random effect regression model. The data used are all non-financial companies in Indonesia in 2016-2020. We compare the accuracy of the M-score findings using the Overall Manipulation Index (OMI) approach. The results showed slightly different findings when FFS was measured using two different measurements. Rationalization is proven to affect the occurrence of FFS; both measured using the M-score and OMI. Stimulus and opportunity partially influence the occurrence of FFS. This study also demonstrates which elements in the financial statements are often used as a tool to perform FFS and finds evidence that DEPI is the item most frequently used to perform FFS. On the other hand, the sector that is indicated to conduct FFS often is the cyclical consumer sector.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
10 February 2022
ISBN
978-94-6239-532-9
ISSN
2352-5428
DOI
10.2991/aebmr.k.220204.001How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Dwiyanjana Santyo Nugroho
AU  - Vera Diyanty
PY  - 2022
DA  - 2022/02/10
TI  - Fraud Hexagon and Fraudulent Financial Statement: Comparison Between OMI and Beneish Model
BT  - Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)
PB  - Atlantis Press
SP  - 1
EP  - 10
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220204.001
DO  - 10.2991/aebmr.k.220204.001
ID  - Nugroho2022
ER  -