DETECTION OF FINANCIAL STATEMENT FRAUD TRIANGLE (FRAUD TRIANGLE) IN LQ45 COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Abstract

ABSTRACT
Financial Statement Fraud is a deliberate action taken by management by manipulating the value of financial statements to mislead users of financial statements. Information on the financial statements should describe the actual condition and financial performance of the company and do not contain information that is misleading to the user, but in reality, there are still many financial statements that do not inform the actual financial condition of the company. This research aims to detect fraudulent financial statements based on fraud analysis triangle, there are three conditions that are always present in every incident of fraud. The three conditions are pressure, opportunity, and rationalization. Based on the fraud triangle theory developed by Cressey, researchers develop variables that can be used to proxy the size of the fraud triangle component. Fraud on financial statements or financial statement fraud in this study was proxied by the fraud score model. The population of this study was LQ45 companies listing on the Indonesia Stock Exchange in 2014-2018. The sample selection is done by purposive sampling method and obtained as many as 20 company research samples. Hypothesis testing is done by multiple linear methods. The results showed that the financial stability variable which is proxied by changes in assets (ACHANGE) affects the financial statement fraud while the other variables have no effect.