Financial statement fraud based on Hexagon Fraud Approach

Abstract

This study aims to determine the effect of fraud hexagons on fraudulent financial statements. The objects of this research are food and beverage companies listed on the Indonesia Stock Exchange for the 2017-2019 period. The sampling technique used was purposive sampling with a total of 13 companies. The data analysis techniques are descriptive statistics, classical assumption tests, and multiple linear regression analyses. The results of this study indicate that financial targets, financial stability, changes in directors, and ineffective monitoring have not proven to have a positive effect on fraudulent financial reporting. Political Connection, Total Accruals, and CEO Duality have positively affected fraudulent financial statements. So that in this way, the company can provide financial reporting information properly, follow field conditions, and comply with the ethics and standards set by the relevant authorities.

Keywords

• fraud hexagon, financial statement, financial statement fraud