Manipulation Detection in Financial Statements

Currently, manipulation in financial statements more difficult to detect. Generally, by distorting the accounting records, forgery transaction or misapplication of accounting principles will have impact on distruction market, investors and public opinion. This study developed th lou and Wang research which adding internal control system as part of corporate governance. The objective of this research are find out the factors influence manipulation in financial statements. The results of this study are: (1).the auditor opinion has a negative effect on the tendency of manipulation in financial statements. (2). Level of corporate debt, liquidity, ROA, independent boars of drectors, internal control system and audit qulity have no effect on tendency of manipulation in financial statements. (3). Auditor rotation showed the opposite relationship with the hypothesis