Open AccessFraudulent financial reporting in public companies in Indonesia: An analysis of fraud triangle and responsibilities of auditors
Author(s) -
Sri Puji Astuti,
Zuhrohtun Zuhrohtun,
Kusharyanti Kusharyanti
Publication year - 2015
Publication title -
journal of economics, business and accountancy ventura
Language(s) - English
Resource type - Journals
eISSN - 2088-785X
pISSN - 2087-3735
DOI - 10.14414/jebav.v18i2.821
Subject(s) - accounting , business , audit , rationalization (economics) , stock exchange , external auditor , sample (material) , auditor's report , test (biology) , finance , economics , internal audit , management , paleontology , chemistry , chromatography , biology
This study investigates the determinants of fraudulent financial reporting in Indonesia and the responsibility of auditor for fraudulent financial reporting. This study posits that fraud triangle affects the fraudulent financial reporting, and auditors do not give unqualified opinion for fraud firms. The sample consists of 380 firms listed on Indonesia Stock Exchange. The 39 of 380 firms have received punishment from BAPEPAM during 2007-2010 periods. This study uses logistic regression to test the first hypothesis and correlation to test the second hypothesis. The finding suggests that: 1) fraud triangle (opportunity, pressure, and rationalization) does not affect the fraudulent financial reporting; 2) auditor opinion has a positive correlation towards fraudulent financial reporting.