Pengujian Structure Corporate Governance terhadap Fraudulent Financial Reporting di Perusahaan Property dan Real Estate

Abstract

Every public company must implement corporate governance structure effectively to minimize cases of fraudulent financial reporting. This opinion is based on the many cases of fraud that occur in public companies whose effects are slowly undermining the company’s growth continuously until finally experiencing a dramatic bankruptcy. This study tried to examine the effect of corporate governance structure as one of the tools to minimize the practice of fraudulent financial reporting in public companies.The population used in this study was public property and real estate companies from 2013-2016 by using sampling techniques based on certain criteria. Total samples obtained were 116 companies and processed by using descriptive statistical analysis and hypothesis testing using multiple linear regression with SPSS.The results of this study indicate that the effectiveness of internal audit affects the prevention of fraudulent financial reporting, but does not succeed in showing the influence of the number of the board of commissioners on fraudulent financial reporting. This study also proved that there was no significant relationship between the board members who have international experience and the effectiveness of the audit committee with the prevention of fraudulent financial reporting.

Keywords

• internal audit
• audit committee
• board of commissioners
• financial reporting fraud