The Role of Audit Committee and Institutional Ownership as Moderating: Analysis Fraud Heptagon in Indonesia Authors: Imang Dapit Pamungkas, Ira Oktavianasari, Fathimah, Adinda Nabila Jasmine
Year: 2024
Type: article
Abstract: This study explores the influence of seven factors: pressure, opportunity, rationalization, capability, arrogance, ignorance, and greed on fraudulent financial statements using the Fraud Heptagon model analysis. Institutional Ownership and the Audit Committee serve as moderating variables. Focusing on state-owned enterprises in Indonesia from 2018 to 2022, purposive sampling produced 141 samples. Regression analysis conducted through Warp PLS software version 8.0 reveals that opportunity, capability, and ignorance hurt fraudulent financial statements, indicating potential mitigating roles. Conversely, pressure, rationalization, arrogance, and greed positively affect fraudulent financial statements. Notably, institutional ownership moderates the correlation between greed and fraudulent financial statements. These findings provide insights into the dynamics of fraudulent financial statement activities, underscoring the necessity for a comprehensive understanding and strong control mechanisms to prevent fraudulent financial statements.
Institution: Universitas Dian Nuswantoro
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4406599606