Volume 2 Issue 3 | 2025 | View PDF
Paper Id:IJMSM-V2I3P104
doi: 10.71141/30485037/V2I3P104

The Impact of Fraud on Financial Statement Fraud : Analysis of The Moderating Roe of The Audit Committee

Hidayat Darwis, Samukri, Rosanti Rahmadania

Citation:
Hidayat Darwis, Samukri, Rosanti Rahmadania, "The Impact of Fraud on Financial Statement Fraud : Analysis of The Moderating Roe of The Audit Committee" International Journal of Multidisciplinary on Science and Management, Vol. 2, No. 3, pp. 29-34, 2025.

Abstract:
This study aims to examine the influence of Fraud Pentagon factors, namely pressure, opportunity, rationalization, competence, and arrogance , on financial reporting fraud , and to analyze the moderating role of the Audit Committee. The study population is companies listed on the SRI-KEHATI Index of the Indonesia Stock Exchange (IDX) in 2020-2024. Using the purposive sampling method, 125 panel data observations were obtained. The data analysis technique used panel data regression. The results of the study indicate that the variables pressure, opportunity, rationalization, and competence have a positive and significant effect on financial reporting fraud. Conversely, the arrogance variable does not have a significant effect. Another important finding is that the Audit Committee has been proven to be successful in significantly moderating (weakening) the influence of pressure, opportunity, rationalization, and competence on financial reporting fraud. This finding emphasizes the importance of strengthening the internal oversight function, especially the role of the Audit Committee, in preventing financial reporting fraud practices in companies committed to the principle of sustainability.

Keywords: Pressure, Opportunity, Rationalization, Competence, Arrogance, Corporate Governance.

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