Detection of Financial Statement Fraud Based on Fraud Diamond on Transportation Companies during Covid-19 Pandemic with the Audit Committee as Moderating Variable

Authors : Elisabeth Lefina Boboy; Maria IndriyaniHewe Tiwu; MinarniAnaci Dethan; Sarinah Joyce Margaret Rafael

Volume/Issue : Volume 7 - 2022, Issue 4 - April

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Covid-19 pandemic that affects world economy bring significant loss and put pressure on industry that experienced significant downward in the growth of domestic product like transportation sector. This premises could create pressure that will lead to the financial statement fraud. As result this research was conducted at transportation companies that were listed on Indonesia Stock Exchange during the covid-19 pandemic, aims to know the effect of fraud diamond namely pressure, opportunity, rationalization, and capability as factor that could predispose financial statement fraud as well to examine audit committee moderating role. Purposive sampling was used which produced 10 samples of companies. Using panel data regression and moderated regression analysis on panel data provided by EViews 12, the data were analyzed. The results showed that only opportunity proxied by nature of industry and rationalization measured by total accrual to total assets have a significant effect on financial statement fraud. Meanwhile financial stability that indicates pressure and CEO tenure to measure capability has no significant effect. Audit committee has no moderating effect on the relationship between pressure, opportunity, rationalization and capability with financial statement fraud.

Keywords : Financial statement fraud,fraud diamond, pressure, opportunity, rationalization, capability, audit committee.


Paper Submission Last Date
31 - December - 2022

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