FINANCIAL REPORTING MANIPULATION ON MINING COMPANIES IN INDONESIA: FRAUD DIAMOND THEORY APPROACH

  • Atiek Sri Purwanti Universitas Pasundan
  • Yonathan Daya Persada Universitas Jenderal Soedirman
  • Roni Budianto Universitas Sultan Ageng Tirtayasa
  • Eko Suyono Universitas Jenderal Soedirman
  • Sofiatul Khotimah Universitas Jenderal Soedirman

Abstract

Forensic accounting helps to discover fraud practices where the fraud diamond theory is one of the popular theories in this issue. It puts concerns on budget priorities, financial stability, inefficient monitoring, replacement of auditor and directors. As the dependent variable, financial statement manipulation funded by income control is used. The nine mining entities listed on the Indonesian Stock Exchange in 2017-2019 were chosen using the purposive sampling method, resulting in 27 observations. By using the multi-linear regression method, This study showed that financial targets and financial stability affect the occurrence of fraud in financial reports. Oppositely, insufficient monitoring, replacement of auditors and directors have no impact on the fraudulent reporting.

Downloads

Download data is not yet available.
Published
Apr 25, 2022
How to Cite
PURWANTI, Atiek Sri et al. FINANCIAL REPORTING MANIPULATION ON MINING COMPANIES IN INDONESIA: FRAUD DIAMOND THEORY APPROACH. Jurnal Riset Akuntansi Kontemporer, [S.l.], v. 14, n. 1, p. 115-121, apr. 2022. ISSN 2597-6826. Available at: <https://journal.unpas.ac.id/index.php/jrak/article/view/5286>. Date accessed: 29 june 2022. doi: http://dx.doi.org/10.23969/jrak.v14i1.5286.