Fraud Risk Factor (Opportunity) dan Fraudulent Financial Statements (Empirical Study on Nonfinancial Firm in Indonesia)

Abstract

raudulent financial statements attract the attention of various parties, because the negative impact caused considerable. Detection of fraudulent financial statements still become a problem that still do not have a best solution. This study aims to empirically examine the effect of fraud risk factors (opportunity) to the occurence of fraudulent financial statement. Fraud risk factors (opportunity) are proxied by the size of commissioner, the nature of industry, board of commissioners independence, the presence of commissioner on audit commitee, audit committee independence, interim financial reporting, and related party transactions. While fraudulent financial statements that are dependent variable is proxied by the independent auditor's opinion.

The population of this study is non financial companies listed on the Indonesia Stock Exchange in 2009 until 2011. This study used purposive sampling techniques and total sample of this study is 218 nonfinancial firm. Logistic regression testing is used to test the hypothesis in this study.

The results of this study found that proxy of nature of industry, ratio of receivable to sales, and board of comissioner independence have significant positive effect, while audit committees independence has significant negative effect to the occurence of fraudulent financial statements.