Universal Journal of Accounting and Finance Vol. 9(6), pp. 1487 - 1494
DOI: 10.13189/ujaf.2021.090625
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Predicting Fraudulent Financial Statement Risk: The Testing Dechow F-Score Financial Sector Company Inindonesia


Nurcahyono Nurcahyono 1,*, Ayu Noviani Hanum 1, Ida Kristiana 1, Imang Dapit Pamungkas 2
1 Department of Accounting, Universitas Muhammadiyah Semarang, Indonesia
2 Department of Accounting, Universitas Dian Nuswantoro, Indonesia

ABSTRACT

This study aims to empirically examine the factors that can be used to detect the risk of Fraudulent financial statements. Fraudulent financial statement is an interesting topic to study, because it has a huge impact on business sustainability and the country's economy may become a crisis. The research population is the financial sector companies listed on the Indonesia Stock Exchange in 2018-2021. The sampling technique uses purposive sampling. The number of companies that meet the sample criteria is 76 companies, so there are 228 observations. Data analysis used Moderated Regression Analysis for hypothesis testing. The results show that companies which provide shares for managers and streamline the role of the whistleblowing system and audit committee will prevent companies from committing fraud, because they act as internal controls. Auditor switching and management arrogance are early indicators that can be used for fraud detection, because the strategy of management is to hide crimes. Financial ratios are certainly the easiest indicator to detect fraudulent financial statements risk, profitability, liquidity, and solvency of a company that is small or minus will encourage management to commit fraud so that the company looks good. Also, organizational culture can reduce the risk of fraudulent financial statements if it is properly internalized.

KEYWORDS
Fraud, Managerial Ownership, Auditor Switching, Financial Ratios, Organizational Culture

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Nurcahyono Nurcahyono , Ayu Noviani Hanum , Ida Kristiana , Imang Dapit Pamungkas , "Predicting Fraudulent Financial Statement Risk: The Testing Dechow F-Score Financial Sector Company Inindonesia," Universal Journal of Accounting and Finance, Vol. 9, No. 6, pp. 1487 - 1494, 2021. DOI: 10.13189/ujaf.2021.090625.

(b). APA Format:
Nurcahyono Nurcahyono , Ayu Noviani Hanum , Ida Kristiana , Imang Dapit Pamungkas (2021). Predicting Fraudulent Financial Statement Risk: The Testing Dechow F-Score Financial Sector Company Inindonesia. Universal Journal of Accounting and Finance, 9(6), 1487 - 1494. DOI: 10.13189/ujaf.2021.090625.