DETECTION FINANCIAL STATEMENT FRAUD SHARIAH BANK IN INDONESIA: ROLE OF POLITIC CONNECTION, FINANCIAL STABILITY, IN EFECTIVE MONITORING
Abstract
Financial statement fraud is an effort to achieve the goal, namely to gain profits by committing fraudulent practices, harming other parties either intentionally or negligently. Companies are often oriented towards the appearance of good financial performance, with the aim of pleasing all stakeholders in the selection of financial statements. This causes the management as an agent to do everything in the process of preparing financial statements. Agents try to show that the company's financial statements are able to penetrate and win in the stock market The research method used in this study is a quantitative method with the aim of measuring the strength of the relationship between dependent variables and independent variables. The determination of the sample carried out is purposive, that is, it is selected with certain considerations and objectives. The sample used is a bank with a sharia base in Indonesia that has met the criteria for research needs. There are 12 Islamic banking companies during the 2019-2023 period that will be studied in this study. political connections have no effect on financial statement fraud. financial stability has an effect on financial statement fraud. that innefective monitoring has no effect on financial statement fraud. Compared to fraudulent financial statements The limitation of this research is that the variables used to detect fraud are not comprehensive enough, so recommendations for future research could reveal variables that can detect financial statement fraud. The second limitation is that the data used is only data from Islamic banks in Indonesia. Future research can include data comprehensively across countries so that research results can be generalized.
References
Achmad, T., Ghozali, I., & Pamungkas, I. D. (2022). Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia. Economies, 10(1), 1–16. https://doi.org/10.3390/economies10010013
Agusputri, H., & Sofie, S. (2019). Faktor-faktor yang berpengaruh terhadap fraudulent financial reporting dengan menggunakan analisis fraud pentagon. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 14(2), 105–124.
Ahmad, Y. Y., Subroto, B., & Atmini, S. (2022). The Role of Political Connections in the Relationship Between Managerial Ability and Fraudulent Financial Statements. Journal of Accounting and Investment, 23(3), 431–445. https://doi.org/10.18196/jai.v23i3.14493
Apriliana, S., & Agustina, L. (2017). The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach. Jurnal Dinamika Akuntansi, 9(2), 154–165. https://doi.org/10.15294/jda.v7i1.4036
Biduri, S., & Tjahjadi, B. (2024). Determinants of financial statement fraud: the perspective of pentagon fraud theory (evidence on Islamic banking companies in Indonesia). Journal of Islamic Accounting and Business Research.
Evana, E., Metalia, M., & Mirfazli, E. (2019). Business ethics in providing financial statements: The testing of fraud pentagon theory on the manufacturing sector in Indonesia. Business Ethics and Leadership, 3(3), 68–77.
Gross, C., Königsgruber, R., Pantzalis, C., & Perotti, P. (2016). The financial reporting consequences of proximity to political power. Journal of Accounting and Public Policy, 35(6), 609–634. https://doi.org/10.1016/j.jaccpubpol.2016.06.007
Harymawan, I., & Nurillah, D. (2017). Do Reputable Companies Produce a High Quality of Financial Statements? Asian Journal of Accounting Research, 2(2), 1–7. https://doi.org/10.1108/AJAR-2017-02-02-B001
Husmawati, P., Septriani, Y., Rosita, I., & Handayani, D. (2017). Fraud pentagon analysis in assessing the likelihood of fraudulent financial statement (study on manufacturing firms listed in Bursa Efek Indonesia Period 2013-2016). International Conference of Applied Science on Engineering, Business, Linguistics and Information Technology, 45–51.
Irwandi, S. A., Ghozali, I., Faisal, & Pamungkas, I. D. (2019). Detection fraudulent financial statement: Beneish m-score model. WSEAS Transactions on Business and Economics, 16, 271–281.
Jennings, R., Kartapanis, A., & Yu, Y. (2021). Do political connections induce more or less opportunistic financial reporting? Evidence from close elections involving SEC‐influential politicians. Contemporary Accounting Research, 38(2), 1177–1203.
Kagias, P., Cheliatsidou, A., Garefalakis, A., Azibi, J., & Sariannidis, N. (2022). The fraud triangle – an alternative approach. Journal of Financial Crime, 29(3), 908–924. https://doi.org/10.1108/JFC-07-2021-0159
Khajavi, S. (2021). Political Connections and Accounting Information Quality : Evidence from Financial Restatement. 18(71), 1–32. https://doi.org/10.22054/qjma.2021.49457.2113
Khamainy, A. H., Ali, M., & Setiawan, M. A. (2022). Detecting financial statement fraud through new fraud diamond model: the case of Indonesia. Journal of Financial Crime, 29(3), 925–941. https://doi.org/10.1108/JFC-06-2021-0118
Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm. Managerial Behavior, Agency Costs and Ownership Structure.
Nanda, S. tri, Salmiah, N., & Mulyana, D. (2019). Fraudulent Financial Reporting: a Pentagon Fraud Analysis. Jurnal Ilmiah Ekonomi Dan Bisnis, 16(2), 122–134. https://doi.org/10.31849/jieb.v16i2.2678
Pamungkas, I. D., & Utomo, S. D. (2018). Fraudulent financial reporting: An application of fraud pentagon theory to association of Southeast Asian nations corporate governance scorecard. Journal of Advanced Research in Law and Economics, 9(5 (35)), 1729–1737.
Pramono Sari, M., Kiswanto, Rahmadani, L. V., Khairunnisa, H., & Pamungkas, I. D. (2020). Detection Fraudulent Financial Reporting and Corporate Governance Mechanisms Using Fraud Diamond Theory of the Property and Construction Sectors in Indonesia. Humanities & Social Sciences Reviews, 8(3), 1065–1072. https://doi.org/10.18510/hssr.2020.83109
Rahmatika, D. N., Kartikasari, M. D., Indriasih, D., Sari, I. A., & Mulia, A. (2019). Detection of Fraudulent Financial Statement; Can Perspective of Fraud Diamond Theory be applied to Property, Real Estate, and Building Construction Companies in Indonesia? European Journal of Business and Management Research, 4(6).
Rezazadeh, J., & Mohammadi, A. (2019). Managerial ability, political connections and fraudulent financial reporting. Accounting and Auditing Review, 26(2), 217–238.
Riyanti, A. (2021). The Effect of Hexagon Fraud on the Potential Fraud Financial Statements with the Audit Committee as a Moderating Variable. International Journal of Social Science and Human Research, 04(10), 2924–2933. https://doi.org/10.47191/ijsshr/v4-i10-36
Sai, C. N. (2013). The impact of politically-connected executives in fraudulent financial reporting: Evidence based on the H shares1. African Journal of Business Management, 7(18), 1875–1884. https://doi.org/10.5897/ajbm12.530
Sudirman, I., Hasan, H., Kartini, Syamsuddin, & Nirwana. (2023). The Fraud Gone Model and Political Connection – Distribution Approach. Journal of Distribution Science, 21(12), 71–81. https://doi.org/10.15722/jds.21.12.202312.71
Tiffani, L. dan M. (2015). Deteksi Financial Statement Fraud dengan Analisis Fraud Triangel pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 19(2), 112–125.
Wang, Z., Chen, M. H., Chin, C. L., & Zheng, Q. (2017). Managerial ability, political connections, and fraudulent financial reporting in China. Journal of Accounting and Public Policy, 36(2), 141–162. https://doi.org/10.1016/j.jaccpubpol.2017.02.004
Wibowo, D., & Putra, Y. (2023). Factors that Influence Financial Statement Fraud with Fraud Pentagon Analysis. Asia Pacific Fraud Journal, 8(1), 65–76.
Wicaksono, A., & Suryandari, D. (2021). The Analysis of Fraudulent Financial Reports Through Fraud Hexagon on Public Mining Companies. Accounting Analysis Journal, 10(3), 220–228. https://doi.org/10.15294/aaj.v10i3.54999
Achmad, T., Ghozali, I., & Pamungkas, I. D. (2022). Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia. Economies, 10(1), 1–16. https://doi.org/10.3390/economies10010013
Agusputri, H., & Sofie, S. (2019). Faktor-faktor yang berpengaruh terhadap fraudulent financial reporting dengan menggunakan analisis fraud pentagon. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 14(2), 105–124.
Ahmad, Y. Y., Subroto, B., & Atmini, S. (2022). The Role of Political Connections in the Relationship Between Managerial Ability and Fraudulent Financial Statements. Journal of Accounting and Investment, 23(3), 431–445. https://doi.org/10.18196/jai.v23i3.14493
Apriliana, S., & Agustina, L. (2017). The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach. Jurnal Dinamika Akuntansi, 9(2), 154–165. https://doi.org/10.15294/jda.v7i1.4036
Biduri, S., & Tjahjadi, B. (2024). Determinants of financial statement fraud: the perspective of pentagon fraud theory (evidence on Islamic banking companies in Indonesia). Journal of Islamic Accounting and Business Research.
Evana, E., Metalia, M., & Mirfazli, E. (2019). Business ethics in providing financial statements: The testing of fraud pentagon theory on the manufacturing sector in Indonesia. Business Ethics and Leadership, 3(3), 68–77.
Gross, C., Königsgruber, R., Pantzalis, C., & Perotti, P. (2016). The financial reporting consequences of proximity to political power. Journal of Accounting and Public Policy, 35(6), 609–634. https://doi.org/10.1016/j.jaccpubpol.2016.06.007
Harymawan, I., & Nurillah, D. (2017). Do Reputable Companies Produce a High Quality of Financial Statements? Asian Journal of Accounting Research, 2(2), 1–7. https://doi.org/10.1108/AJAR-2017-02-02-B001
Husmawati, P., Septriani, Y., Rosita, I., & Handayani, D. (2017). Fraud pentagon analysis in assessing the likelihood of fraudulent financial statement (study on manufacturing firms listed in Bursa Efek Indonesia Period 2013-2016). International Conference of Applied Science on Engineering, Business, Linguistics and Information Technology, 45–51.
Irwandi, S. A., Ghozali, I., Faisal, & Pamungkas, I. D. (2019). Detection fraudulent financial statement: Beneish m-score model. WSEAS Transactions on Business and Economics, 16, 271–281.
Jennings, R., Kartapanis, A., & Yu, Y. (2021). Do political connections induce more or less opportunistic financial reporting? Evidence from close elections involving SEC‐influential politicians. Contemporary Accounting Research, 38(2), 1177–1203.
Kagias, P., Cheliatsidou, A., Garefalakis, A., Azibi, J., & Sariannidis, N. (2022). The fraud triangle – an alternative approach. Journal of Financial Crime, 29(3), 908–924. https://doi.org/10.1108/JFC-07-2021-0159
Khajavi, S. (2021). Political Connections and Accounting Information Quality : Evidence from Financial Restatement. 18(71), 1–32. https://doi.org/10.22054/qjma.2021.49457.2113
Khamainy, A. H., Ali, M., & Setiawan, M. A. (2022). Detecting financial statement fraud through new fraud diamond model: the case of Indonesia. Journal of Financial Crime, 29(3), 925–941. https://doi.org/10.1108/JFC-06-2021-0118
Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm. Managerial Behavior, Agency Costs and Ownership Structure.
Nanda, S. tri, Salmiah, N., & Mulyana, D. (2019). Fraudulent Financial Reporting: a Pentagon Fraud Analysis. Jurnal Ilmiah Ekonomi Dan Bisnis, 16(2), 122–134. https://doi.org/10.31849/jieb.v16i2.2678
Pamungkas, I. D., & Utomo, S. D. (2018). Fraudulent financial reporting: An application of fraud pentagon theory to association of Southeast Asian nations corporate governance scorecard. Journal of Advanced Research in Law and Economics, 9(5 (35)), 1729–1737.
Pramono Sari, M., Kiswanto, Rahmadani, L. V., Khairunnisa, H., & Pamungkas, I. D. (2020). Detection Fraudulent Financial Reporting and Corporate Governance Mechanisms Using Fraud Diamond Theory of the Property and Construction Sectors in Indonesia. Humanities & Social Sciences Reviews, 8(3), 1065–1072. https://doi.org/10.18510/hssr.2020.83109
Rahmatika, D. N., Kartikasari, M. D., Indriasih, D., Sari, I. A., & Mulia, A. (2019). Detection of Fraudulent Financial Statement; Can Perspective of Fraud Diamond Theory be applied to Property, Real Estate, and Building Construction Companies in Indonesia? European Journal of Business and Management Research, 4(6).
Rezazadeh, J., & Mohammadi, A. (2019). Managerial ability, political connections and fraudulent financial reporting. Accounting and Auditing Review, 26(2), 217–238.
Riyanti, A. (2021). The Effect of Hexagon Fraud on the Potential Fraud Financial Statements with the Audit Committee as a Moderating Variable. International Journal of Social Science and Human Research, 04(10), 2924–2933. https://doi.org/10.47191/ijsshr/v4-i10-36
Sai, C. N. (2013). The impact of politically-connected executives in fraudulent financial reporting: Evidence based on the H shares1. African Journal of Business Management, 7(18), 1875–1884. https://doi.org/10.5897/ajbm12.530
Sudirman, I., Hasan, H., Kartini, Syamsuddin, & Nirwana. (2023). The Fraud Gone Model and Political Connection – Distribution Approach. Journal of Distribution Science, 21(12), 71–81. https://doi.org/10.15722/jds.21.12.202312.71
Tiffani, L. dan M. (2015). Deteksi Financial Statement Fraud dengan Analisis Fraud Triangel pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 19(2), 112–125.
Wang, Z., Chen, M. H., Chin, C. L., & Zheng, Q. (2017). Managerial ability, political connections, and fraudulent financial reporting in China. Journal of Accounting and Public Policy, 36(2), 141–162. https://doi.org/10.1016/j.jaccpubpol.2017.02.004
Wibowo, D., & Putra, Y. (2023). Factors that Influence Financial Statement Fraud with Fraud Pentagon Analysis. Asia Pacific Fraud Journal, 8(1), 65–76.
Wicaksono, A., & Suryandari, D. (2021). The Analysis of Fraudulent Financial Reports Through Fraud Hexagon on Public Mining Companies. Accounting Analysis Journal, 10(3), 220–228. https://doi.org/10.15294/aaj.v10i3.54999
Agusputri, H., & Sofie, S. (2019). Faktor-faktor yang berpengaruh terhadap fraudulent financial reporting dengan menggunakan analisis fraud pentagon. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 14(2), 105–124.
Ahmad, Y. Y., Subroto, B., & Atmini, S. (2022). The Role of Political Connections in the Relationship Between Managerial Ability and Fraudulent Financial Statements. Journal of Accounting and Investment, 23(3), 431–445. https://doi.org/10.18196/jai.v23i3.14493
Apriliana, S., & Agustina, L. (2017). The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach. Jurnal Dinamika Akuntansi, 9(2), 154–165. https://doi.org/10.15294/jda.v7i1.4036
Biduri, S., & Tjahjadi, B. (2024). Determinants of financial statement fraud: the perspective of pentagon fraud theory (evidence on Islamic banking companies in Indonesia). Journal of Islamic Accounting and Business Research.
Evana, E., Metalia, M., & Mirfazli, E. (2019). Business ethics in providing financial statements: The testing of fraud pentagon theory on the manufacturing sector in Indonesia. Business Ethics and Leadership, 3(3), 68–77.
Gross, C., Königsgruber, R., Pantzalis, C., & Perotti, P. (2016). The financial reporting consequences of proximity to political power. Journal of Accounting and Public Policy, 35(6), 609–634. https://doi.org/10.1016/j.jaccpubpol.2016.06.007
Harymawan, I., & Nurillah, D. (2017). Do Reputable Companies Produce a High Quality of Financial Statements? Asian Journal of Accounting Research, 2(2), 1–7. https://doi.org/10.1108/AJAR-2017-02-02-B001
Husmawati, P., Septriani, Y., Rosita, I., & Handayani, D. (2017). Fraud pentagon analysis in assessing the likelihood of fraudulent financial statement (study on manufacturing firms listed in Bursa Efek Indonesia Period 2013-2016). International Conference of Applied Science on Engineering, Business, Linguistics and Information Technology, 45–51.
Irwandi, S. A., Ghozali, I., Faisal, & Pamungkas, I. D. (2019). Detection fraudulent financial statement: Beneish m-score model. WSEAS Transactions on Business and Economics, 16, 271–281.
Jennings, R., Kartapanis, A., & Yu, Y. (2021). Do political connections induce more or less opportunistic financial reporting? Evidence from close elections involving SEC‐influential politicians. Contemporary Accounting Research, 38(2), 1177–1203.
Kagias, P., Cheliatsidou, A., Garefalakis, A., Azibi, J., & Sariannidis, N. (2022). The fraud triangle – an alternative approach. Journal of Financial Crime, 29(3), 908–924. https://doi.org/10.1108/JFC-07-2021-0159
Khajavi, S. (2021). Political Connections and Accounting Information Quality : Evidence from Financial Restatement. 18(71), 1–32. https://doi.org/10.22054/qjma.2021.49457.2113
Khamainy, A. H., Ali, M., & Setiawan, M. A. (2022). Detecting financial statement fraud through new fraud diamond model: the case of Indonesia. Journal of Financial Crime, 29(3), 925–941. https://doi.org/10.1108/JFC-06-2021-0118
Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm. Managerial Behavior, Agency Costs and Ownership Structure.
Nanda, S. tri, Salmiah, N., & Mulyana, D. (2019). Fraudulent Financial Reporting: a Pentagon Fraud Analysis. Jurnal Ilmiah Ekonomi Dan Bisnis, 16(2), 122–134. https://doi.org/10.31849/jieb.v16i2.2678
Pamungkas, I. D., & Utomo, S. D. (2018). Fraudulent financial reporting: An application of fraud pentagon theory to association of Southeast Asian nations corporate governance scorecard. Journal of Advanced Research in Law and Economics, 9(5 (35)), 1729–1737.
Pramono Sari, M., Kiswanto, Rahmadani, L. V., Khairunnisa, H., & Pamungkas, I. D. (2020). Detection Fraudulent Financial Reporting and Corporate Governance Mechanisms Using Fraud Diamond Theory of the Property and Construction Sectors in Indonesia. Humanities & Social Sciences Reviews, 8(3), 1065–1072. https://doi.org/10.18510/hssr.2020.83109
Rahmatika, D. N., Kartikasari, M. D., Indriasih, D., Sari, I. A., & Mulia, A. (2019). Detection of Fraudulent Financial Statement; Can Perspective of Fraud Diamond Theory be applied to Property, Real Estate, and Building Construction Companies in Indonesia? European Journal of Business and Management Research, 4(6).
Rezazadeh, J., & Mohammadi, A. (2019). Managerial ability, political connections and fraudulent financial reporting. Accounting and Auditing Review, 26(2), 217–238.
Riyanti, A. (2021). The Effect of Hexagon Fraud on the Potential Fraud Financial Statements with the Audit Committee as a Moderating Variable. International Journal of Social Science and Human Research, 04(10), 2924–2933. https://doi.org/10.47191/ijsshr/v4-i10-36
Sai, C. N. (2013). The impact of politically-connected executives in fraudulent financial reporting: Evidence based on the H shares1. African Journal of Business Management, 7(18), 1875–1884. https://doi.org/10.5897/ajbm12.530
Sudirman, I., Hasan, H., Kartini, Syamsuddin, & Nirwana. (2023). The Fraud Gone Model and Political Connection – Distribution Approach. Journal of Distribution Science, 21(12), 71–81. https://doi.org/10.15722/jds.21.12.202312.71
Tiffani, L. dan M. (2015). Deteksi Financial Statement Fraud dengan Analisis Fraud Triangel pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 19(2), 112–125.
Wang, Z., Chen, M. H., Chin, C. L., & Zheng, Q. (2017). Managerial ability, political connections, and fraudulent financial reporting in China. Journal of Accounting and Public Policy, 36(2), 141–162. https://doi.org/10.1016/j.jaccpubpol.2017.02.004
Wibowo, D., & Putra, Y. (2023). Factors that Influence Financial Statement Fraud with Fraud Pentagon Analysis. Asia Pacific Fraud Journal, 8(1), 65–76.
Wicaksono, A., & Suryandari, D. (2021). The Analysis of Fraudulent Financial Reports Through Fraud Hexagon on Public Mining Companies. Accounting Analysis Journal, 10(3), 220–228. https://doi.org/10.15294/aaj.v10i3.54999
Achmad, T., Ghozali, I., & Pamungkas, I. D. (2022). Hexagon Fraud: Detection of Fraudulent Financial Reporting in State-Owned Enterprises Indonesia. Economies, 10(1), 1–16. https://doi.org/10.3390/economies10010013
Agusputri, H., & Sofie, S. (2019). Faktor-faktor yang berpengaruh terhadap fraudulent financial reporting dengan menggunakan analisis fraud pentagon. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 14(2), 105–124.
Ahmad, Y. Y., Subroto, B., & Atmini, S. (2022). The Role of Political Connections in the Relationship Between Managerial Ability and Fraudulent Financial Statements. Journal of Accounting and Investment, 23(3), 431–445. https://doi.org/10.18196/jai.v23i3.14493
Apriliana, S., & Agustina, L. (2017). The Analysis of Fraudulent Financial Reporting Determinant through Fraud Pentagon Approach. Jurnal Dinamika Akuntansi, 9(2), 154–165. https://doi.org/10.15294/jda.v7i1.4036
Biduri, S., & Tjahjadi, B. (2024). Determinants of financial statement fraud: the perspective of pentagon fraud theory (evidence on Islamic banking companies in Indonesia). Journal of Islamic Accounting and Business Research.
Evana, E., Metalia, M., & Mirfazli, E. (2019). Business ethics in providing financial statements: The testing of fraud pentagon theory on the manufacturing sector in Indonesia. Business Ethics and Leadership, 3(3), 68–77.
Gross, C., Königsgruber, R., Pantzalis, C., & Perotti, P. (2016). The financial reporting consequences of proximity to political power. Journal of Accounting and Public Policy, 35(6), 609–634. https://doi.org/10.1016/j.jaccpubpol.2016.06.007
Harymawan, I., & Nurillah, D. (2017). Do Reputable Companies Produce a High Quality of Financial Statements? Asian Journal of Accounting Research, 2(2), 1–7. https://doi.org/10.1108/AJAR-2017-02-02-B001
Husmawati, P., Septriani, Y., Rosita, I., & Handayani, D. (2017). Fraud pentagon analysis in assessing the likelihood of fraudulent financial statement (study on manufacturing firms listed in Bursa Efek Indonesia Period 2013-2016). International Conference of Applied Science on Engineering, Business, Linguistics and Information Technology, 45–51.
Irwandi, S. A., Ghozali, I., Faisal, & Pamungkas, I. D. (2019). Detection fraudulent financial statement: Beneish m-score model. WSEAS Transactions on Business and Economics, 16, 271–281.
Jennings, R., Kartapanis, A., & Yu, Y. (2021). Do political connections induce more or less opportunistic financial reporting? Evidence from close elections involving SEC‐influential politicians. Contemporary Accounting Research, 38(2), 1177–1203.
Kagias, P., Cheliatsidou, A., Garefalakis, A., Azibi, J., & Sariannidis, N. (2022). The fraud triangle – an alternative approach. Journal of Financial Crime, 29(3), 908–924. https://doi.org/10.1108/JFC-07-2021-0159
Khajavi, S. (2021). Political Connections and Accounting Information Quality : Evidence from Financial Restatement. 18(71), 1–32. https://doi.org/10.22054/qjma.2021.49457.2113
Khamainy, A. H., Ali, M., & Setiawan, M. A. (2022). Detecting financial statement fraud through new fraud diamond model: the case of Indonesia. Journal of Financial Crime, 29(3), 925–941. https://doi.org/10.1108/JFC-06-2021-0118
Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm. Managerial Behavior, Agency Costs and Ownership Structure.
Nanda, S. tri, Salmiah, N., & Mulyana, D. (2019). Fraudulent Financial Reporting: a Pentagon Fraud Analysis. Jurnal Ilmiah Ekonomi Dan Bisnis, 16(2), 122–134. https://doi.org/10.31849/jieb.v16i2.2678
Pamungkas, I. D., & Utomo, S. D. (2018). Fraudulent financial reporting: An application of fraud pentagon theory to association of Southeast Asian nations corporate governance scorecard. Journal of Advanced Research in Law and Economics, 9(5 (35)), 1729–1737.
Pramono Sari, M., Kiswanto, Rahmadani, L. V., Khairunnisa, H., & Pamungkas, I. D. (2020). Detection Fraudulent Financial Reporting and Corporate Governance Mechanisms Using Fraud Diamond Theory of the Property and Construction Sectors in Indonesia. Humanities & Social Sciences Reviews, 8(3), 1065–1072. https://doi.org/10.18510/hssr.2020.83109
Rahmatika, D. N., Kartikasari, M. D., Indriasih, D., Sari, I. A., & Mulia, A. (2019). Detection of Fraudulent Financial Statement; Can Perspective of Fraud Diamond Theory be applied to Property, Real Estate, and Building Construction Companies in Indonesia? European Journal of Business and Management Research, 4(6).
Rezazadeh, J., & Mohammadi, A. (2019). Managerial ability, political connections and fraudulent financial reporting. Accounting and Auditing Review, 26(2), 217–238.
Riyanti, A. (2021). The Effect of Hexagon Fraud on the Potential Fraud Financial Statements with the Audit Committee as a Moderating Variable. International Journal of Social Science and Human Research, 04(10), 2924–2933. https://doi.org/10.47191/ijsshr/v4-i10-36
Sai, C. N. (2013). The impact of politically-connected executives in fraudulent financial reporting: Evidence based on the H shares1. African Journal of Business Management, 7(18), 1875–1884. https://doi.org/10.5897/ajbm12.530
Sudirman, I., Hasan, H., Kartini, Syamsuddin, & Nirwana. (2023). The Fraud Gone Model and Political Connection – Distribution Approach. Journal of Distribution Science, 21(12), 71–81. https://doi.org/10.15722/jds.21.12.202312.71
Tiffani, L. dan M. (2015). Deteksi Financial Statement Fraud dengan Analisis Fraud Triangel pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 19(2), 112–125.
Wang, Z., Chen, M. H., Chin, C. L., & Zheng, Q. (2017). Managerial ability, political connections, and fraudulent financial reporting in China. Journal of Accounting and Public Policy, 36(2), 141–162. https://doi.org/10.1016/j.jaccpubpol.2017.02.004
Wibowo, D., & Putra, Y. (2023). Factors that Influence Financial Statement Fraud with Fraud Pentagon Analysis. Asia Pacific Fraud Journal, 8(1), 65–76.
Wicaksono, A., & Suryandari, D. (2021). The Analysis of Fraudulent Financial Reports Through Fraud Hexagon on Public Mining Companies. Accounting Analysis Journal, 10(3), 220–228. https://doi.org/10.15294/aaj.v10i3.54999
Published
2024-09-27
How to Cite
ARINTA, Yusvita Nena; RAHMAN, Taufikur; KHILMIYAH, Ismi.
DETECTION FINANCIAL STATEMENT FRAUD SHARIAH BANK IN INDONESIA: ROLE OF POLITIC CONNECTION, FINANCIAL STABILITY, IN EFECTIVE MONITORING.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 10, n. 1, p. 1317-1328, sep. 2024.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/2966>. Date accessed: 15 may 2026.
Section
Articles
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
