Detecting Fraudulent Financial Statements with Analysis Fraud Hexagon: Evidence from State-Owned Enterprises Indonesia
This research aims to test and analyze the influence of the six elements of the Hexagon Model of Fraud, which include pressure, capability, collusion, opportunity, rationalization, and ego on fraudulent financial statements. This research also tests and analyzes the role of the Audit Committee as a...
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Veröffentlicht in: | WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS 2024-11, Vol.21, p.2314-2323 |
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Hauptverfasser: | , , |
Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | This research aims to test and analyze the influence of the six elements of the Hexagon Model of Fraud, which include pressure, capability, collusion, opportunity, rationalization, and ego on fraudulent financial statements. This research also tests and analyzes the role of the Audit Committee as a moderating variable on the factors determining the fraudulent financial statements in State-Owned Enterprises (BUMN) from 2019 to 2022. In measuring fraudulent financial statements, the F-Score Model uses purposive sampling as the basis for selection, resulting in 125 samples. Sample analysis was carried out using Warp PLS 8.0 with the SEM-PLS model. The research results show that none of the Hexagon Model of Fraud components directly impact the production of financial reports containing circumstances, except for financial pressure, which is still a significant proxy for pressure or stimulus. The decrease in collusion with financial reports is caused by the existence of the Audit Committee, which acts as a moderating variable. However, based on empirical evidence, the Audit Committee still needs help to moderate fraudulent financial statements effectively. |
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ISSN: | 1109-9526 2224-2899 |
DOI: | 10.37394/23207.2024.21.190 |