Analysis of Financial Stability Factors, Financial Targets, External Pressure, Inefficient Monitoring and Rationalization of the Financial Statements Fraud

Main Article Content

Dewi Khornida Marheni
Suryati Suryati


Financial statements are a medium to provide useful information for stakeholders and parties involved. Correct information will help all parties to make the right decisions in carrying out economic or business activities. Fraud is common in the financial and non-financial industries today. Fraud in the financial industry is commonly referred to as financial statement fraud. Up to the third quarter of 2018, 36 banks indicated the occurrence of fraud. This study aims to examine the fraud triangle factor in detecting financial statement fraud. The object of this study uses 43 banking companies listed on the Indonesia Stock Exchange period 2015-2019. Analysis data was using panel regression analysis. The results show there is a significant relationship between financial stability and the rationalization of financial statement fraud. Meanwhile, financial targets, external pressure, and ineffective monitoring did not have a significant effect on financial statement fraud.

Article Details



Achmad, Tarmizi ., & Pamungkas, Imang Dapit. (2018). Fraudulent financial reporting based of fraud diamond Theory: A Study of the Banking Sector in Indonesia. JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi), 4(2), 2372–2377.

Anisykurlillah, I. (2016). The detection of fraudulent financial statement with fraud diamond analysis. Accounting Analysis Journal, 5(3), 173–181.

Budiyono, I., & Arum, M. S. D. (2020). Determinants in detecting fraud triangle of financial statements on companies registered in Jakarta Islamic Index (JII) period 2012-2018. Journal of Islamic Accounting and Finance Research, 2(1), 117.

Darmawan, A., & Saragih, S. O. (2017). The impact of auditor quality, financial stability, and financial target for fraudulent financial statement. Journal of Applied Accounting and Taxation, 2(1), 9–14.

Diansari, R. E., & Wijaya, A. T. (2019). Diamond fraud analysis in detecting financial statement fraud. Journal of Business and Information Systems (e-ISSN: 2685-2543), 1(2), 63–76.

Fathia, Erlina, & Abu Bakar, E. (2017). Statement in triangle fraud perspective : Empirical study in manufacturing companies listed in Indonesia Stock Exchange (IDX) in 2013-2017. Idx.

Ferdinand, R., & Santosa, S. (2019). Factors that influence fraudulent financial statements in retail companies - Indonesia. JAAF (Journal of Applied Accounting and Finance), 2(2), 99.

Handoko, B. L., & Selly. (2020). The effect of fraud diamond on detection of financial statement fraud. International Journal of Advanced Science and Technology, 29(3), 467–475.

Hartanto, R., Lasmanah., Mustafa, M. R., & Purnamasari, P. (2019). Analysis of Factors That Influence Financial Statement Fraud In The Perspective Fraud Triangle : Empirical Study on Banking Companies in Indonesia. ICASI 2019.

Indarto, S. L., & Ghozali, I. (2016). Fraud diamond: Detection analysis on the fraudulent financial reporting. Risk Governance and Control: Financial Markets and Institutions, 6(4Continued1), 116–123.

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(May), 271–281.

Laporan statistik triwulan. (n.d.). Otoritas Jasa Keuangan.

Mariati., & Indrayani, E. (2020). Fraud Triangle Analyses in Detecting Fraudulent Financial Statement Using Fraud Score Model. Jurnal Ilmiah Ekonomi Bisnis, 25(1), 29–44.

Noble, M. R. (2019). Fraud diamond analysis in detecting financial statement fraud. The Indonesian Accounting Review, 9(2), 121.

Fajri, Sidik Nur. (2018). the Effect of Financial Stability, External Pressure, Personal Financial Need, Financial Targets, Ineffective Monitoring and Audit Quality on Detecting Fraud Financial Statement in Perspective of Fraud Triangle. Journal of Business Economics, 23(2), 191–199.

Premananda, N. L. P. U., Budiartha, I. K., Suprasto, H. B., & Badera, I. D. N. (2019). Fraud diamond analysis in detecting fraudulent financial reporting (Study on Indonesian capital market). International Journal of Sciences: Basic and Applied Research, 47(2), 84–95.

Rengganis, R. M. Y. D., Sari, M. M. R., Budiasih, I. G. A. ., Wirajaya, I. G. A., & Suprasto, H. B. (2019). The fraud diamond: element in detecting financial statement of fraud. International Research Journal of Management, IT and Social Sciences, 6(3), 1–10.

Safiq, M., & Seles, W. (2019). The Effects of External Pressures, Financial Targets and Financial Distress on Financial Statement Fraud. Advances in Economics, Business and Management Research, 73.

Sari, N. S., Sofyan, A., & Fastaqlaili, N. (2019). Analysis of Fraud Diamond Dimension in Detecting Financial Statement Fraud. Jurnal Akuntansi Trisakti, 5(2), 171.

Setiawan, M. A. (2019). The influence of pressure in detecting financial statement fraud. Advances in Economics, Business and Management Research (AEBMR), 92(Icame 2018), 119–126.

Supri, Zikra., Rura, Yohanis., &, Pontoh, Grace T. (2018). Detection of fraudulent financial statements with fraud. Quest Journals: Journal of Research in Business and Management, 6(5), 39–45.

Syahputra, E., & Erlina. (2019). Analysis of the effect of diamond fraud in detecting financial statement fraud: Empirical study in manufacturing companies listed in Indonesia Stock Exchange (IDX) 2010 – 2017. International Journal of Public Budgeting Accounting and Finance, 2(1), 1–10.

Syahria, R. (2019). Detecting financial statement fraud using fraud diamond (A study on banking companies listed on the Indonesia Stock Exchange period 2012-2016). Asia Pacific Fraud Journal, 4(2).

Yulianti, Y., Pratami, S. R., Widowati, Y. S., & Prapti, L. (2019). Influence of fraud pentagon toward fraudulent financial reporting in Indonesia an empirical study on financial sector listed in Indonesian stock exchange. International Journal of Scientific and Technology Research, 8(8), 237–242.

Yulistyawati, N. K. A., Suardikha, I. M. S., & Sudana, I. P. (2019). The analysis of the factor that causes fraudulent financial reporting with fraud diamond. In Jurnal Akuntansi & Auditing Indonesia, 23(1), 1–10).