FRAUD DIAMOND ANALYSIS ON FINANCIAL STATEMENT FRAUD(Case on State-Owned Enterprises Listed on the Indonesia Stock Exchange in 2020-2023)

Abstract

This study aims to obtain empirical evidence regarding the effect of fraud diamond theory on financial statement fraud as proxied by F-score. Fraud diamond is a theory developed by Wolfe and Hermanson (2004) which including four elements pressure, opportunity, rationalization and capability. The test of the fraud diamond element uses proxy variables is financial stability, external pressure, financial targets, nature of the industry, change in auditor and change in director. The research sample used was 17 state-owned companies listed on the IDX during the 2020-2023 period with purposive sampling method. Based on multiple linear regression analysis, the results show that external pressure has a negative effect on financial statement fraud and financial targets have a positive effect on financial statement fraud. While the variables of financial stability, the nature of the industry, the change of auditors and the change of directors have no significant effect on financial statement fraud.