Indikasi Fraudlent Financial Reporting dengan Teori Fraud Pentagon pada Perusahaan Manufaktur

This study aims to indicate fraud pentagon used to detect fraudulent financial reporting. Pentagon fraud consists of elements of pressure, opportunity, rationalization, capability, and arrogance. The five elements are divided into five variables, namely financial stability with asset change proxies (ACHANGE), opportunity ineffective monitoring with the number of independent director proxies (BDOUT), rationalization with auditor changes (ΔCPA), capability with replacement of directors with proxies (DCHANGE), and arrogance with the relationship between the political chief executive officer (POLCEO) to detect fraudulent financial reporting using the M-Score. This research uses purposive sampling. This study uses 42 companies listed on the Indonesia Stock Exchange in 2014-2018. The data analysis technique used is logistic regression. This study shows that there are two variables, pressure (capability) capability (ability) that affects the fraudulent financial reporting and opportunity, rationalization, arrogance does not affect the fraudulent financial reporting