Universal Journal of Accounting and Finance Vol. 8(2), pp. 29 - 40
DOI: 10.13189/ujaf.2020.080201
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Explores the Specific Context of Financial Statement Fraud Based on Empirical from Indonesia

Muhammad Ikbal ^1,2, Irwansyah Irwansyah ², Ardi Paminto ^3,*, Yana Ulfah ², Dio Caisar Darma ^4
1 Doctoral Program of Accounting, Faculty of Economics and Business, Brawijaya University, Malang, Indonesia
² Department of Accounting, Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia
³ Department of Management, Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia
⁴ Department of Management, Sekolah Tinggi Ilmu Ekonomi Samarinda, Samarinda, Indonesia

ABSTRACT

We explored the specific context of financial statements of fraud in Indonesia based on empirical evidence. We also explored the lineament of fraudulent financial reporting in Indonesia. This research is important because it will greatly assist the auditor in understanding the pattern and form of fraud, to be able to detect and report these illegal actions. We used a mixed-method of surveying and observation to collect data. Our finding is that the financial statement of fraud is a case throughout the world. The most dominant fraud in Indonesia is the problem of recognition of inappropriate income and secondly related to the improper valuation of assets. We also found something else, that the higher the auditor's experience, the easier it was to find and detect fraud on financial statements and that auditors who hold CFE certificates found more cases of financial reporting fraud during the audit process compared to auditors without CFE certificates. This research contributes to the development of literature by broadening the understanding of academics and practitioners of various fraud profiles that are generally carried out in Indonesia.

KEYWORDS
Financial, Statement Fraud, External Auditor, Auditor Experience

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Muhammad Ikbal , Irwansyah Irwansyah , Ardi Paminto , Yana Ulfah , Dio Caisar Darma , "Explores the Specific Context of Financial Statement Fraud Based on Empirical from Indonesia," Universal Journal of Accounting and Finance, Vol. 8, No. 2, pp. 29 - 40, 2020. DOI: 10.13189/ujaf.2020.080201.

(b). APA Format:
Muhammad Ikbal , Irwansyah Irwansyah , Ardi Paminto , Yana Ulfah , Dio Caisar Darma (2020). Explores the Specific Context of Financial Statement Fraud Based on Empirical from Indonesia. Universal Journal of Accounting and Finance, 8(2), 29 - 40. DOI: 10.13189/ujaf.2020.080201.