FACTORS THAT INFLUENCE FINANCIAL STATEMENT FRAUD AND FINANCIAL DISTRESS: AN INVESTIGATION STUDY

Authors

  • Adzka Rosa Sanjayyana Politeknik LP3I, Tasikmalaya
  • Dekar Urumsah Departemen Akuntansi, Fakultas Ekonomi dan Bisnis, Universitas Islam Indonesia

DOI:

https://doi.org/10.26418/apssai.v1i1.5

Keywords:

Altman Z-Score, Beneish M-Score, Financial distress, Financial statement fraud, Fraud diamond theory.

Abstract

This study aims to analyze the factors of the Fraud Diamond Theory, Change in Auditor, Capability, Financial Targets, External Pressure, and Ineffective Monitoring in the occurrence of Financial Statements Fraud and Financial Distress. Using logistic regression analysis method to test the data, the results showed that External Pressure affected Financial Statements Fraud and Financial Targets affected Financial Distress. Meanwhile, Change in Auditor, Capabilities, Financial Targets, and Ineffective Monitoring had no effects on Financial Statements Fraud and External Pressures had no effects on Financial Distress. In addition, when Financial Distress was connected with Financial Statements Fraud, the result of the study showed that there was no influence between Financial Distress and Financial Statements Fraud. Thus, it is advisable that auditors, investors, creditors, and management work in synergy with each other in preventing and protecting from the occurrence of financial statement fraud by observing the indicators which trigger fraud in a company.

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Published

02-10-2021

How to Cite

Sanjayyana, A. R., & Urumsah, D. (2021). FACTORS THAT INFLUENCE FINANCIAL STATEMENT FRAUD AND FINANCIAL DISTRESS: AN INVESTIGATION STUDY. APSSAI ACCOUNTING REVIEW, 1(1), 70–84. https://doi.org/10.26418/apssai.v1i1.5

Issue

Vol. 1 No. 1 (2021): Oktober

Section

Articles

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