Integritas: Jurnal Antikorupsi

Vol 8, No. 2, 2022, pp. 269-282

https://jurnal.kpk.go.id/index.php/integritas
©Komisi Pemberantasan Korupsi

Fraud Hexagon and corporate governance analysis on the

potential fraud in financial statements
M. Rizkiawan * a, Subagio Subagio b
Politeknik Keuangan Negara STAN. Jl. Bintaro Utama Sektor V, Tangerang Selatan 15222, Indonesia
a [email protected]; b [email protected]

* Corresponding Author

Abstract: This research examines the impact of corporate governance and the Fraud Hexagon on possible
financial statement fraud. The Fraud Hexagon is a fraud theory proposed by Vousinas in 2019 which is a
development of the previous fraud theory. This research uses two independent variables, including the
Fraud Hexagon, which consists of six factors and corporate governance. The likelihood of fraud in financial
statements is also a dependent variable in this research. State-owned businesses (BUMN) and related
entities that are listed on the Indonesia Stock Exchange (BEI) serve as the research object To analyse the
data for this research, logistic regression was used. According to the test results, opportunity and
rationalisation have a very significant impact on the possibility of financial statement fraud, as do pressure
and capability, and collusion testing. However, arrogance and corporate governance have no significant
impact on the financial statement fraud.
Keywords: Financial Statement Fraud; Fraud Hexagon; Corporate governance; State-Owned Enterprises

How to Cite: M. Rizkiawan, & Subagio. Fraud Hexagon and corporate governance analysis
on the potential fraud in financial statements. Integritas : Jurnal Antikorupsi, 8(2), 269-
282. https://doi.org/10.32697/integritas.v8i2.909

Introduction
Financial reports are a means for companies to disclose information owned by the entity to
internal and external parties as stakeholders. The stakeholders can measure a company's
performance by using financial reports as a benchmark medium (Achmad, 2018). Financial
statements are a crucial component of financial reporting since they are the final outcome of an
accounting process and affect how management, investors, creditors, and other users make
decisions about a company. (Agusputri & Sofie, 2019). However, in practice, there are publications
of company financial statements that contain information that should not be there, indicating the
existence of fraudulent practices in the entity’s financial statements. The existence of discrepan-
cies in financial statements harm the company, especially the trust of external stakeholder invest-
ed in the sustainability of the company. The Association of Certified Fraud Examiners (ACFE)
(2020) divides fraud into 3 (three) main categories, including corruption, asset misappropriation,
and financial statement fraud.

Figure 1. Classification of Fraud According to ACFE

Financial statement fraud can be interpreted as when an employee intentionally causes an
error in presenting information or omits material information in the entity financial statements
(ACFE, 2020). When analysed in terms of the average loss per case, fraudulent financial reporting
contributed the most significant value of all fraud. In addition, based on the Indonesian Fraud

10.32697/integritas.v8i2.909 e-mail: [email protected]

270 – Fraud Hexagon and corporate governance analysis on the potential fraud in financial statements

Survey conducted by ACFE Indonesia in 2019, State-Owned Enterprises (BUMN) ranked second
based on institutions that were most harmed by fraud at 31.8%.

Governance BUMN Private Non-profit Others

Company Organization
Figure 2. Institutions in Indonesia that are the Most Harmed by Fraud
To explain the causes of fraudulent practices, numerous fraud detection models have been
developed. The Fraud Triangle model, created by Cressey (1953) has three components: pressure,
opportunity, and rationalisation. The Fraud Diamond was a further development of the fraud
model, developed by Wolfe and Hermanson in 2004. The fraud model then developed into the
Crowe Fraud Pentagon model proposed by Marks (2011). The components of competence and
arrogance complement the components of the Fraud Triangle model.
The Hexagon Fraud model was developed by Vousinas (2019). It comprises of six components
that might lead to fraud: Stimulus (Pressure), Capabilities, Opportunities, Rationalisation, Ego
(Arrogance), and Collusion. Pressure is the motive that triggers someone to commit fraud, oppor-
tunity is the gateway to fraud, and rationalisation is a exculpation that the perpetrator uses to
believe their actions are not a violation (Cressey, 1953). Capability is the capacity a person
possesses to take advantage of possibilities that are already present. (Wolfe & Hermanson, 2004).
Due to the nature of greed and the notion that one is exempt from internal restraint, arrogance is
an attitude of superiority and diminished sensitivity (Marks, 2011). Finally, collusion is the
agreement between two or more parties when one acts maliciously (Vousinas, 2019). Based on
the results of the ACFE survey (2019), 36% of fraud is carried out collusively by 4 (four) or more
people and can cause losses of more than 10 billion rupiah. This data shows that financial
statement fraud is a routine practice that can result in significant nominal losses in each instance.
This fact is also relevant to the Fraud Hexagon model which is a new model with the addition of a
collusion factor.
The main reason for choosing BUMN companies and BUMN affiliated entities as research
objects is because 24.3% of the total capitalisation of funds in the Indonesian capital market are
controlled by BUMN companies and BUMN affiliated entities. Market capitalisation data as of
December 2019 shows that several shares of state-owned companies are included in the Big Cap
(the entity with the highest market capitalisation), whereas two of the top three corporations in
terms of market capitalisation are state-owned companies. In line with this, fraud involving state-
owned companies continues to occur and involves large state financial losses. Fraud cases
generally go on for a long period, meaning they are cumulative in harming state finances, and the
impact causes state financial losses in significant amounts. This study is unique compared to
previous research because it conducts an analysis using a combination of fraud hexagons com-
posed of six factors, and corporate governance as an independent variable on the likelihood of
fraud in financial statements, estimated through the Beneish M-Score in one main model. Beneish
M-Score uses financial ratios as a statistical form, calculated using the company's accounting
information to verify the possibility that the profits presented by the company indicate manipu-
lation. The measurement of corporate governance uses a different measurement compared to
previous research. It uses measurement in the form of weighting from the implementation of the
Financial Services Authority (OJK) Regulation Number 21 of 2015 about implementation of the
directive for Good Corporate Governance which is further regulated by using the SE OJK Number
32 of 2015 about directive for Corporate Governance, which is structured through five aspects,

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
 M. Rizkiawan, Subagio Subagio - 271

eight principles, and 25 recommendations for the implementation in corporate governance so that
it is more comprehensive. Furthermore, the objects studied are BUMN entities and affiliates,
which are still rare enough to be used as research objects. This research is expected to become
additional literature related to the potential for fraud in financial statements related to research
in auditing and financial accounting on a capital market basis. Additionally, it is anticipated that
this research will help BUMN and OJK implement the corporate governance-related regulations
they have developed. Furthermore, this research can provide additional knowledge and guidance
when identifying any potential fraud in the financial statements of an entity to the benefit of its
auditors, investors, and other parties.

Methods
The research method adopted is a quantitative one which includes a way to conduct the testing
process on a specific theory by conducting research on the relationship between the variables
being tested. Secondary data becomes the data used in the testing process. Data that is not directly
provided to data collectors, such as through manuscripts or other individuals, is referred to as
secondary data (Sugiyono, 2017). Financial reports, annual reports, and other reports used in this
report that support the research and are published to the public are secondary data. In this study,
all BUMN companies and BUMN-affiliated entities listed on the IDX from 2016 to 2020 are
included in study population. The sample is chosen using the following criteria using purposive
sampling: (1) BUMN companies and BUMN affiliated entities that have been listed on the IDX since
December 31, 2015; (2) BUMN companies and BUMN affiliated entities that are not included in
the financial sector on the IDX; (3) BUMN companies and BUMN affiliated entities that already
published financial statements and annual reports for the reporting year 2016 to 2020.
The population of this study is comprised of all BUMN corporations and BUMN associated
entities listed on the IDX as of December 31, 2020, a total of 33 companies, with details of 16
companies being the parent entity of BUMN and 17 companies being affiliated entities of BUMN.
By applying the purposive sampling method to obtain data that match the required criteria, the
total sample to be used in this study is a total of 21 samples. By using a monitoring period of five
years, namely 2016 to 2020, then total observations in this research were 105 objects.
The problem in this study will be formulated as follows: (1) Is there a connection between the
fraud hexagon factor and the likelihood of fraud in the financial statements?; and (2) Is corporate
governance related to the likelihood of fraud in the financial statements?
Based on the formulation of the problem, the research objectives are as follows: (1) Knowing
whether the fraud hexagon factor indicates the likelihood of fraud in the financial statements; and
(2) Knowing whether corporate governance indicates a likelihood of fraud in the financial
statements
Using moderating indicators, Rahayu (2020) studied how the Fraud Triangle affected fraudu-
lent financial reporting. Pressure (financial steadiness), opportunity (sufficient monitoring), and
rationalisation are the indicators considered. According to the study's findings, rationalisation has
a positive impact on these metrics, but financial steadiness and effective oversight have little
bearing on them. Using indicators of financial targets, individualised financial needs, outer press-
ures, industry characteristics, effective monitoring, changes in KAP, and changes by company
directors in measuring fraud diamonds, Chandra and Suhartono (2020) investigated the impact
of diamond fraud and corporate governance to uncover the likelihood of fraudulent financial
statements. The findings suggest that while outer pressure, individual financial requirements,
changes in KAP, and changes in business directors have no bearing on the likelihood of a fake
financial statement, financial targets, industry features, and changes in KAP have a favourable
influence.
Bawekes et.al (2018) did another investigation on the fraud model, using the Fraud Pentagon
model as a test reference for deceptive financial reporting. Financial goals, financial health,
outside influences, ownership by institutions, ineffective control, external audit capacity, auditor
changes, changes of directors, and the number of high-ranking executive officer portraits are the
indicators employed in this study. The study’s findings indicate that financial health and the

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
272 – Fraud Hexagon and corporate governance analysis on the potential fraud in financial statements

quantity of executive officers' portraits have a big impact on financial statement fraud. The exis-
tence of fraud in the financial statements is not significantly impacted by financial goals, outside
influences, ownership by institutions, ineffective control, external audit capacity, auditor changes,
or changes of directors.
Agusputri et al. (2019) conducted a test regarding fraudulent financial reports using the Fraud
Pentagon model on entities listed on the IDX in the manufacturing sector. The indicators used
were pressure (financial targets, financial steadiness, and outer pressure), opportunity (ineffec-
tive supervision and industry characteristics), rationalisation (changes in auditing and justifica-
tion behaviour), competence (changes of directors), and arrogance (portraits of highest executive
officers). The results of this study proved that financial targets and ineffective supervision have a
positive influence on the existence of fraudulent financial reporting. Moreover, outer pressure,
the character of the industry, changes of auditors, and justification behaviour negatively influence
the existence of fraudulent financial reports. Financial steadiness, changes of directors, and
portraits of the highest executive officers have no effect on fraud in financial statements.
On firms listed on the IDX specifically in the manufacturing sector, Kusumosari (2020) con-
ducted a study on financial reporting fraud using the Fraud Hexagon model. Pressure (financial
targets, financial steadiness, and outer pressure), opportunity (ineffective monitoring and exter-
nal audit capacity), rationalisation, competence (CEO title), hubris (CEO duality), and collusion
were the indicators employed in this study (CEO title, political connections, and state-owned
enterprises). According to the findings, financial reporting fraud was positively and significantly
influenced by financial aims, financial steadiness, political connections, state-owned firms, ineffec-
tive monitoring, rationalisation, and CEO duality. However, there is no relationship between
fraudulent reporting and outer pressure, CEO rank, or external audit competence.
Other research using the Fraud Hexagon model was carried out by Sari and Nugroho (2020),
who reviewed financial statement fraud on entities listed on the IDX in the manufacturing sector.
The variables applied in this study were pressure (financial steadiness, individualised financial
needs, outer pressure, and financial targets), capabilities, opportunities (industry characteristics
and effective monitoring), rationalisation, arrogance, and collusion. The results of this study
proved that individualised financial needs, industry characteristics, arrogance, and collusion
determine the existence of financial statement fraud, while financial steadiness, outer pressure,
financial targets, capabilities, effective monitoring, and the rationalisation factor had no influence
on the existence of financial statement fraud.
Priswita and Taqwa (2019) studied corporate governance's impact on fraud in financial state-
ments. There were 4 (four) proxies used, including the stock owned by the manager, commission-
ers, the audit committee, and percentage of institutional shares. The test results concluded that
the stock owned by the manager, commissioners, the audit committee, and the percentage of
institutional shares had no influence on the chance of fraud in the financial statements. These
research conclusions are in line with Kurniawan et al. (2020), who studied the relationship bet-
ween company governance and earnings management relating to the possibility of financial fraud.
The study conclude that stock owned by managers, shares owned by institutions, commissioners,
independent commissioners, and audit commissions (which are proxies of governance) did not
have a significant impact on fraudulent financial statements.
Sabrina et al. (2020) examined the impact of the connectivity of corporate governance organs,
suboptimal monitoring, and earnings management for fraud in financial statements. Governance
was measured through 3 (three) parameters, including independent commissioners, independent
directors, and audit committees, with the conclusion being that the three variables had no impact
on the existence of financial statement fraud. Different conclusions were obtained in research
conducted by Wicaksono and Chariri (2015). This study examined governance procedures for
financial reporting manipulation opportunities using 4 (four) variables, specifically the number
of commissioners, the structure of independent commissioners, the audit committee, and the
efficacy of internal audits. The conclusion of the test proved that the audit committee and the
efficacy of internal audits have a negative and significant impact on the manipulation of financial
statements. Conversely, the number of commissioners and the structure of independent commi-
ssioners had no impact on the manipulation of financial statements.

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
 M. Rizkiawan, Subagio Subagio - 273

Research related to the role of corporate governance in minimising financial report manipu-
lation was conducted by Mulyadianto et al. (2020). Their research used 3 (three) variables when
measuring corporate governance, including the performance of the board of commissioners, the
financial skills of the audit committee, and the stock owned by the institution. The findings of this
research concluded that the performance of the board of commissioners and the stock owned by
the institution had an influence on minimising financial statement fraud, while the financial skills
of the audit committee had no influence.
Hidayat (2020) used the ASEAN Corporate Governance Scorecard (ACGS) when measuring cor-
porate governance for fraudulent financial reporting, making non-financial entities listed on the
IDX their objects of observation. The result of the study concluded that the principles of govern-
ance based on the ACGS, including the obligations of the board, the authority of the stockholders,
the fulfillment of the functions of interested parties, the fulfillment of equal rights to stockholders,
and disclosure had a positive impact on minimising the chance of fraud in the financial statements.
Agency theory is the main theory referred to in this study. Agency theory defines the bond
among stockholders (principals) and managers (agents). When there is an engagement that
connects a party (principal) with another party (agent) in carrying out a job for the benefit of
stockholders, an agency relationship will arise (Jensen & Meckling, 1976). The relationship that
occurs is a delegation of authority for business decision-making in managing and controlling
resources from stockholders as principals to management as agents. The existence of a principal
and agent relationship will encourage asymmetric information. Information asymmetry is the
occurrence of an imbalance of information caused by the position of an agent allowed to acquire
more entity-linked knowledge when compared to the knowledge obtained by the principal,
potentially creating gaps that trigger the potential for the manipulation of financial statements
(Sabrina et al., 2020). The loopholes created provide an opportunity for agents to prioritise on an
individual’s behalf by hiding information that should be conveyed to the principal, or by
manipulating the information presented in financial statements that have the potential to deceive
financial statement readers when making decisions (Nurbaiti & Hanafi, 2017).
Eisenhardt (1989) revealed that there are three things related to human nature which form
the basis of agency theory, among others: (1) humans tend to be more concerned with self-interest
(self-interest); (2) humans are limited by logical and reasonable thoughts (bounded rationality);
and (3) the human tendency to minimise and avoid risk (risk-aversion). The nature factor possess-
ed by humans as individual beings will result in management as agents tending to prioritize indi-
vidualised goals over company goals, ultimately creating disputes between principals and agents,
known as agency problems. According to Jensen and Meckling (1976), agency problems encou-
rage management to act as if they prioritise on the behalf of stockholders. However, management
generally acts based on individualised interests. Differences in interests need to be in harmony
with contracts that will cause agency costs. Jensen and Meckling (1976), argues that agency costs
consist of 3 (three) types: First, Costs associated with estimating, monitoring, and overseeing the
acts conducted by the agent that must be covered by the principal (monitoring cost); Second, Costs
to be borne by the agent as a result of the agent's actions to equate the agent behalf with the behalf
of the principal (bonding costs); and Third, Costs incurred because the agent cannot fully align
their behalf with the principal's behalf, resulting in a decrease in the principal's welfare (residual
loss).
According to ACFE (2020), fraud is divided into 3 (three) main parts, including corruption,
asset misappropriation, and financial statement fraud. Arens et al. (2012) define fraud as inten-
tional financial misstatements. Tuanakotta (2013) interprets fraud as all forms of illegal acts
characterised by concealment, violation, or a deception of trust. Pusat Edukasi Antikorupsi KPK
(2019) defines fraudulent statements as a form of manipulation of financial statements and non-
financial statement in the form of misstatements with overstatement and understatement
mechanisms generally manipulated against asset accounts and income accounts in financial
statements. Thus, fraudulent acts in financial reporting are actions that violate the law and are
included in the scope of corruption.
The Beneish M-Score (FFR) model is used in this research as a proxy for the likelihood of fraud
in financial accounts. In the article The Detection of Earnings Manipulation, Beneish (1999)

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
274 – Fraud Hexagon and corporate governance analysis on the potential fraud in financial statements

proposed the M-Score by describing the profile from a manipulating sample company, its
distinctive traits, and the suggested model used to identify the chance of manipulation in the
entity’s financial report. Beneish uses 8 (eight) characteristics in the M-Score model, namely Days
sales in receivables index (DSRI), Gross margin index (GMI), Asset quality index (AQI), Sales
growth index (SGI), Depreciation index (DEPI), Sales, general, and administrative expenses index
(SGAI), Leverage index (LVGI), and Total accruals to total assets (TATA). If the M-Score obtained
is > (-2.22), it indicates the possibility of fraud in the entity’s financial report. If the M-Score
obtained is < (-2.22) then there is no indication of the potential of fraud. Beneish's model cannot
determine with certainty whether the report has been manipulated or not, only the probability. A
forensic audit examination determines whether the financial statements have already been
manipulated. The following is the formula used to obtain the M-Score:
M-Score = -4,84 + 0,92 (DSRI) + 0,528 (GMI) + 0,404 (AQI) + 0,892 (SGI) + 0,115 (DEPI) - 0,172
(SGAI) + 4,679 (TATA) - 0,327 (LVGI).
There are 7 (seven) independent variables used in the study, as presented in Table 1.
Table 1. Independent Variable
Variable Proxy Measurement Method
Pressure Financial stability (total Aset t-Total Aset t-1) / (Total Aset t)
Capability No change of Code 1 (one) if the company does not change directors
Directors Code 0 (zero) if the company changes directors
Collusion Sales transactions to Sales to related parties/Gross amount of sales
related parties
Opportunity Effective monitoring Total number of independt commisioners
Rationalisation Change of auditor Code 1 (one) if the company change auditors
Code 0 (zero) if the company does not change auditors
Arrogance Political connection Code 1 (one) if the president commisioner and/or
president director have political relations
Code 0 (zero) if the president commisioner and/or
president director has no political relations
Corporate Implementation Compliance with the guidelines for public company
governance corporate governance governance as regulated in the Circular Letter of the
Financial Services Authority Number 32/SEOJK.04/2015
This study was initiated to understand the impact of the independent variables consisting of
Pressure (FS), Capability (CoD), Collusion (RPT), Opportunity (EM), Rationalisation (CiA), Arro-
gance (PC), and Corporate Governance (CG) on the potential existence of fraud in the financial
statements (FFR), as the dependent variable. The main model of this research is as follows.
FFR = α + β_1 FS + β_2 CoD + β_3 RPT + β_4 EM + β_5 CiA + β_6 PC + β_7 CG + ε
The implementation of this test was carried out by logistic regression analysis. There are 3
(three) stages in evaluating logistic regression, specifically the overall model feasibility test, the
model fit quality level test, and the individual parameter significance test (Widarjono, 2010). In this
study, the overall feasibility of the model was carried out by paying attention to the -2LL value
against the chi-square table value at a significance level of 5% and the degree of freedom according
to the number of independent variables. The next stage is an omnibus test to see the significance
of the model coefficients with the aim of seeing a significant effect of the independent variable on
the dependent variable. Testing the quality level of the model fit is carried out through the Hosmer
and Lemeshow test with the aim of being able to estimate the suitability of the predicted
probabilities and the observed probabilities. To decide the effect of the model in explaining the
probability of the model to the independent variable, the test is continued by looking at the pseudo
r square coefficient. Pseudo r square is measured based on Nagelkerke R Square. The next step is
to decide outlier data on the independent variables to avoid unfavourable measurement results.
Testing the significance of individual parameters is carried out to determine the degree of
significance of the impact of the individual independent variables on the dependent variable.

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
 M. Rizkiawan, Subagio Subagio - 275

Result and Discussion

Based on the individual parameter significance test, the facts found in the research results are
shown in Table 2.
Table 2. Parameter Significance Test Individually
Robust
Variable
B Sig. Exp(B)
FS 5,321 0,025** 204,573
CoD 1,013 0,048** 2,753
RPT 1,584 0,071* 4,872
EM -1,362 0,002*** 0,256
CiA 1,442 0,004*** 4,320
PC -0,569 0,146 0,566
CG -0,016 0,489 0,984
CONSTANT 1,773 0,008*** 5,889
-2LL Beg 144,406
-2LL End 102,351
p-value 0,0004
Pseudo R2 29,12%
The research results are based on tests that describe the correlation between the dependent
variable and the independent variable:
The Effect of Pressure on the Potential for Fraud in Financial Statements
The test results found that the ratio of changes in entity assets as a proxy for pressure has a
positive and significant effect. According to agency theory, it is possible that management has
goals that are not aligned with those of stockholders. When there is an engagement that connects
the stockholders as the principal, with the management as an agent in carrying out a task for the
benefit of the stockholders, it will lead to an agency relationship (Jensen & Meckling, 1976). The
relationship is the delegation of business decision-making authority in managing and controlling
resources from stockholders to management. This results in management realising the maximum
possible profit for the company through performance which will be reflected in the financial
statements. This situation will pressure management. State-owned companies and affiliated
entities under them as entities whose majority shares are controlled by the government, have
different aims and objectives from private companies that prioritise profits for stockholders.
According to Law No. 19 of 2003 concerning BUMN, in general, the establishment of BUMN is
aimed at contributing to the national economy, particulary state revenues, prioritising profit,
providing public benefits through the provision of goods and/or services that are needed by the
community, pioneering work that the private sector has not carried out, and assisting
communities.
The conclusions of this research are in line with the findings by Annisya et al. (2016); Bawekes
et al. (2018); Septriani and Handayani (2018); Wicaksana and Suryandari (2019); Kusumosari
(2020); and Sari and Rofi (2020) which state that the ratio of changes in entity assets as a
measurement of financial steadiness has a positive and significant influence on the potential for
fraud in financial statements.
The Effect of Capability on the Potential for Fraud in Financial Statements
According to the test results, it is found that capability, measured by the absence of a change of
directors, had a positive and significant impact. Directors can take advantage of their position to
influence other people who can determine the occurrence of fraud. Periodic changes of directors
are needed to minimise abuse of authority in the long term and improve the performance of
previous management (Septriani & Handayani, 2018). According to Law Number 19 of 2003
Concerning BUMN, the Board of Directors is the BUMN institution in charge of topics connected
to BUMN's needs and objectives and acts as a representation in relation to legal concerns. Even
when the term of office of a director has not yet reached 5 (five) years, a change of director may

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
276 – Fraud Hexagon and corporate governance analysis on the potential fraud in financial statements

still be made using the GMS or EGMS process. In the case of PT Garuda Indonesia, the director
(who was in office at the time of the Company's financial report of the 2018 period being
manipulated) was fired from his post in 2019 via a procedure for public companies. In addition,
the basic nature factor possessed by humans as individual beings will cause directors to prioritise
individualised interests instead of the interests of the Company. This can lead to an impetus for
fraud in the Company's financial statements.
The research findings by Siddiq et al. (2017); Septriani and Handayani (2018); Himawan and
Wijanarti (2020) are in line with the conclusions of this study which found that the absence of a
change of directors had a positive impact on the chance for fraud in financial statements. However,
the findings of this study differ from Bawekes et al. (2018); Agusputri and Sofie (2019); Sari and
Nugroho (2020); Mintara and Hapsari (2021). They found that the absence of a change of directors
had no impact on the chance for fraud in a company’s financial statements.
The Effect of Collusion on the Potential for Fraud in Financial Statements
According to the test results, collusion has a positive and considerable impact on the percen-
tage of sales transactions involving linked parties. Transactions between SOE corporations and
SOE linked entities are widespread in state-owned businesses where the government owns the
majority of the stock, as shown by the disclosure of transactions to related parties in their financial
statements. Young (2005) states that transactions with related parties can increase risk of fraud
because it increases management's involvement in making decisions. The complexity of transac-
tions with related parties can trigger the risk of material misstatements due to the risk of
manipulation by management.
The research of Fitri et al. (2019); Sari and Nugroho (2020) are in line with the conclusion
found in this research that collusion has a positive and significant influence on the potential for
fraud in financial statements. It also shares the conclusion of Young (2005) regarding transactions
with related parties being related to fraudulent acts occurring in an entity. However, the findings
in this study differ from those of Rachmawati and Marsono (2014); Jaunanda and Silaban (2020),
which found that transactions with related parties had no effect on the potential for fraud in
financial statements.
The Effect of Opportunity on the Potential for Fraud in Financial Statements
Based on the test results, it was found that opportunity proxied by the number of independent
commissioners had a negative and very significant effect. One of the efforts which can be under-
taken to minimise the possibility of fraud is to limit the opportunities that certain parties can
exploit. Effective monitoring will encourage companies to achieve ideal conditions to achieve
company goals. However, the ideal situation is not always the same for every company. Ineffective
monitoring occurs because the entity’s internal control system do not running well (Agusputri &
Sofie, 2019). Following agency theory, ineffective monitoring will create opportunities for a party
to realise individualised goals that are not in line with company goals, leading to further agency
costs. Skousen et al. (2009) argue that fraud tends to be found in entities that have fewer outer
boards of commissioners. All state-owned businesses and affiliated entities that have been
registered on the IDX have complied with the minimum number of Independent Commissioners
in the composition of the Board of Commissioners following OJK Regulation Number 33 of 2014
concerning Board of Directors and Board of Commissioners of Public Companies.
The results of this research are in line with the findings of Razali and Arshad (2014); Tiffani
and Marfuah (2015); Sari and Husadha (2020); Vidella and Afiah (2020), which state that
increasing the number of independent commissioners in a company will minimise the potential
for fraud in the company financial statements. However, this conclusion is different from the
findings of Chandra and Suhartono (2020); Sari and Nugroho (2020), which conclude that the
amount of independent commissioners does not have a significant influence on the potential for
fraud in financial statements.

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
 M. Rizkiawan, Subagio Subagio - 277

The Effect of Rationalisation on the Potential for Fraud in Financial Statements

Based on the test results, it was found that rationalisation proxied through the change of
auditors had a positive and very significant effect. Rationalisation is defined as justifying beha-
viour by fraud actors for actions that have been carried out (Marks, 2011). The external auditor's
role is to supervise and examine management's presentation of financial statements. Companies
that frequently change auditors are more often interpreted as a manifestation of rationalisation
in an effort to erase traces of fraud by previous auditors (Bawekes et al., 2018). In agency theory,
agency problems that arise lead to agency costs. One of the agency costs that occur is stockholders
bearing the costs of measuring, observing, and controlling the actions taken by management
(monitoring costs). As a result, agency theory serves as the foundation for implementing quality
audits by stockholders through the expenditure of monitoring fees, with the expectation that
management behaviour will continue to align with stockholder interests. The manipulation of the
financial accounts of the state-owned corporation PT Garuda Indonesia Tbk in the 2018 fiscal year
is one example of a case that has garnered public attention. According to the historical annual
reports made public on the company's official website, there was always a change of external
auditors in the years prior to and following 2018.
The results of this research in line with the conclusions of Loebbecke et al. (1989), Saputra &
Kesumaningrum (2017); Rahayu (2020); Mintara and Hapsari (2021), who found that rationalisa-
tion proxied through the change of external auditors had a significant impact on the potential for
fraud in financial statements. Traces of fraud that can be found by previous auditors, as well as
the motivation to cover up real information, can be hidden through a change of auditors. However,
this finding is not in line with the conclusions of Bawekes et al. (2018); Agusputri and Sofie (2019);
Rusmana and Tanjung (2019); Sari and Nugroho (2020), which found that there are no significant
effects of auditor turnover on the potential for fraud in financial statements.
The Effect of Arrogance on the Potential for Fraud in Financial Statements
Based on the test results, it was discovered that political connections, which are used to gauge
arrogance, had no discernible impact on the likelihood of financial statement fraud. This is
because the existence of political connections in the executive, legislative, and judicial sectors
encourages someone who has a position to further increase the attitude of responsibility towards
the position that has been entrusted. This is especially due to the supervision factor and attention
given by the community, which become more intense if there is a practice that not suitable. This
is supported by the widespread practice of concurrent positions in the government, especially
commissioners, which is still common. In accordance with BUMN Ministerial Regulation Number
10 of 2020 regarding the terms and procedures for the appointment and dismissal of members of
the Board of Commissioners and the Supervisory Board, there is no prohibition against holding
positions in the government.
This is in line with the research of Sai (2013), Jullani et al. (2020), Kartikawati et al. (2020),
and Sabrina et al. (2020) who found that political connections did not have a significant impact on
the potential for fraud in financial statements. However, the findings of this study are not in line
with the findings of Stuart and Wang (2016); Matangkin et al. (2018), which found that political
connections have a positive and significant impact on the potential for fraud in a company's
financial statements. The existence of differences in the direction of research results related to
political connections is an interesting matter requiring further study.
The Effect of Governance on the Potential for Fraud in Financial Statements
Testing revealed that the chance for fraud in financial statements was not significantly
impacted by governance, as determined by the percentage of open entity governance suggestions
that were implemented in accordance with SE OJK Number 32 of 2015. The disclosure of com-
pliance with the recommendations of public company governance by the OJK, which is directive
and explanatory, is what prevents the implementation of governance from having any impact on
the chance for fraud in a company's financial statements. This is because there are entities that
have not simultaneously followed the directives. Entities are required to put into practice the

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
278 – Fraud Hexagon and corporate governance analysis on the potential fraud in financial statements

recommendations made for adopting the facets and tenets of the Governance Guidelines that
correspond to their requirements and/or circumstances. The entity must explain the reasons why
any implementation of the recommendations has not been carried out in accordance with the
Governance Guidelines, if the Governance Guidelines' recommendations are not yet appropriate
given the circumstances. Alternately, the entity may provide additional strategies for putting the
Governance Guidelines' features and tenets into practice. The Minister of BUMN Regulation
Number 1 of 2011 about the Implementation of Good Corporate Governance in BUMN also
contains specific regulations on good governance for BUMN enterprises. There is no mechanism
for evaluating the appropriateness of the application because the entity only states that it has
followed or not followed the guidelines, unaccompanied by additional explanations, which makes
the application of governance have no effect on the potential for fraud in an entity's financial
statements. While the application of the criteria often takes into account the industry, sector, and
the volume and complexity of an entity, another factor is the range of sample characteristics
employed in this study.
This is in line with the findings of Priswita and Taqwa (2019); Kurniawan et al. (2020); Sabrina
et al. (2020); Guritno et al. (2020); Nursiam and Ghaisani. In contrast, the studies by Widodo and
Syafruddin (2017); Yasmin et al. (2020); Mulyadiyanto et al. (2020); Hidayat (2020), reached
different outcomes, concluding that corporate governance has a detrimental effect on the
possibility of fraud in a company's financial statements.

Conclusion
According to the findings of this study, pressure significantly and favourably affects the
possibility of financial statement fraud. Positive direction suggests that there is a tendency for
financial statement fraud to increase when the ratio of asset changes rises. Additionally, the estab-
lishment of BUMN and linked entities with different goals and objectives from private enterprises
may put more pressure on management.
Capabilities have a positive and significant impact on the possibility of financial statement
fraud. The positive trend suggests that the possibility of financial statement fraud tends to grow
when there isn't a change in the board of directors. The GMS and EGMS methods can be used to
replace directors in BUMN corporations and connected entities even if their terms of office have
not yet reached 5 (five) years. Changing the Board of Directors on a regular basis is required to
prevent long-term abuse of power and to enhance the effectiveness of the previous
administration.
Collusion significantly and favourably affects the likelihood of financial statement fraud. The
company’s tendency to conduct more sales transactions with connected parties is indicated by the
positive direction, which raises the risk of financial statement fraud. Additionally, BUMN
corporations occasionally engage in business with BUMN associated entities, as shown by the
disclosure of transactions with related parties, which raises the possibility of fraud.
Opportunity significantly and negatively affects the possibility of financial statement fraud. The
negative trend suggests that the possibility of fraud in a company's financial statements will
decrease as the number of independent commissioners increases. According to OJK Regulation
Number 33 of 2014 about Directors and Board of Commissioners of Issuers or Public Companies,
all BUMN companies and affiliated entities registered on the IDX have met the requirement for the
minimum number of Independent Commissioners in the composition of the Board of
Commissioners.
The possibility of financial statement fraud is significantly and favourably impacted by ratio-
nalisation. The positive trend suggests that the possibility of financial statement fraud tends to
rise as auditor turnover does. The frequency and intensity of auditor change in BUMN corpora-
tions and BUMN-related entities tend to be signs that management is attempting to cover up past
auditors' malfeasance.
It has been established that arrogance has little or no impact on the likelihood of fraud in the
financial statements of BUMN corporations and BUMN-affiliated entities. This happens because

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
 M. Rizkiawan, Subagio Subagio - 279

the existing regulations do not specifically regulate the prohibition of concurrent positions in the
government, so it is still common and has become a public concern in several cases.
It has been established that the likelihood of fraud in the financial statements of BUMN
enterprises and BUMN-affiliated entities is not significantly impacted by good corporate
governance.. This is because the disclosure of compliance with the recommendations for public
company governance by the OJK is directive and explanatory, and there is no mechanism to
evaluate the accuracy of the implementation of public entity governance.
The use of the sample in this study is restricted to state-owned enterprises and affiliated
entities listed on the IDX, a total of 21 companies according to the sample criteria within the period
of 2016 to 2020. In addition, this study only utilises secondary data without the help of other data
collection methods so that it is possible that there are differences with real conditions in the field
according to the characteristics of the company. The use of a financial information database
containing numbers from the financial statements limits the study's ability to detect fraud in the
financial statements to the M-Score, which approximates the calculation's outcome.
For further research, it is hoped that a sample of all state-owned companies in Indonesia can
be used. Further research can also use different measurement proxies on the dependent and
independent variables so that they can capture phenomena from different perspectives.
Additional research can use indicators that were not included in this study to reach additional
conclusions and can combine quantitative and qualitative methodologies to more fully represent
field phenomena.

References
ACFE. (2020). Report to the nations on occupational fraud and abuse: 2020 global fraud study. In
Association of Certified Fraud Examiners (ACFE).
ACFE Indonesia. (2019). Survei fraud Indonesia. In Association of Certified Fraud Examiners.
Achmad, T. (2018). Pengaruh kualitas audit dan auditor switching terhadap kecurangan
pelaporan keuangan: kepemilikan institusional sebagai variabel moderating. Jurnal
Akuntansi Dan Bisnis, 18(2), 110–125. https://doi.org/10.20961/jab.v18i2.380
Agusputri, H., & Sofie, S. (2019). Faktor - faktor yang berpengaruh terhadap fraudulent financial
reporting dengan menggunakan analisis fraud pentagon. Jurnal Informasi, Perpajakan,
Akuntansi, Dan Keuangan Publik, 14(2), 105–124.
https://doi.org/10.25105/jipak.v14i2.5049
Annisya, M., Lindrianasari, & Asmaranti, Y. (2016). Pendeteksian kecurangan laporan keuangan
menggunakan fraud diamond. Jurnal Bisnis Dan Ekonomi (JBE), 23(1), 72–89.
Anti-Corruption Learning Center KPK. (2019). Modul materi tindak pidana korupsi.
https://aclc.kpk.go.id/materi/berpikir-kritis-terhadap-korupsi/buku/modul-materi-
tindak-pidana-korupsi
Arens, A. A., Elder, R. J., & Beasley, M. S. (2012). Auditing and assurance services: an integrated
approach. Boston: Prentice Hall.
Bawekes, H. F., Simanjuntak, A. M. A., & Daat, S. C. (2018). Pengujian teori fraud pentagon
terhadap fraudulent financial reporting (studi empiris pada perusahaan yang terdaftar di
Bursa Efek Indonesia Tahun 2011-2015). Jurnal Akuntansi & Keuangan Daerah, 13(1),
114–134.
Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5),
24–36. https://doi.org/10.2469/faj.v55.n5.2296
Chandra, N., & Suhartono, S. (2020). Analisis pengaruh fraud diamond dan good corporate
governance dalam mendeteksi kemungkinan terjadinya fraudulent financial statement.
Jurnal Bina Akuntansi, 7(2), 175–207. https://wiyatamandala.e-
journal.id/JBA/article/view/93
Cressey, D. R. (1953). Other people’s money; a study of the social psychology of embezzlement. Free
Press.

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
280 – Fraud Hexagon and corporate governance analysis on the potential fraud in financial statements

Eisenhardt, K. M. (1989). Agency theory: an assessment and review. Academy of Management

Review, 14(1), 57–74. https://doi.org/10.5465/amr.1989.4279003
Fitri, F., Syukur, M., & Justisa, G. (2019). Do the fraud triangle components motivate fraud in
Indonesia? Australasian Accounting, Business and Finance Journal, 13(4), 63–72.
https://doi.org/10.14453/aabfj.v13i4.5
Guritno, D. P., Probowulan, D., & Maharani, A. (2020). Deteksi kecurangan laporan keuangan
melalui variabel corporate governance. BUDGETING : Journal of Business, Management and
Accounting, 2(1), 220–229. https://doi.org/10.31539/budgeting.v2i1.1232
Hidayat, F. (2020). Analisis pengaruh corporate governance terhadap kecurangan laporan
keuangan pada perusahaan nonkeuangan yang tercatat di Bursa Efek Indonesia Tahun
2018. https://perpustakaan.stan.ac.id/layanan-karya-tulis-ilmiah/
Himawan, F. A., & Wijanarti, R. S. (2020). Analisis pengaruh fraud pentagon terhadap
pendeteksian kecurangan laporan keuangan pada perusahaan manufaktur yang terdaftar
di BEI Tahun 2014-2018. ESENSI: Jurnal Manajemen Bisnis, 23(2), 137–154.
Jaunanda, M., & Silaban, D. P. (2020). Pengujian fraud pentagon terhadap resiko financial
fraudulent reporting. Ultima Management : Jurnal Ilmu Manajemen, 12(2), 147–158.
https://doi.org/10.31937/manajemen.v12i2.1581
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs
and ownership structure. Journal of Financial Economics, 3(4), 305–360.
https://doi.org/10.1016/0304-405X(76)90026-X
Jullani, Mukhzarudfa, & Yudi. (2020). Detection of fraudulent financial reporting using the
perspective of the fraud pentagon theory. Jurnal Akuntansi Dan Keuangan Universitas
Jambi, 5(3), 158–168.
Kartikawati, T. S., Mahyus, & Zulfikar. (2020). Pengaruh fraud pentagon dalam mendeteksi
fraudulent financial reporting dengan menggunakan beneish model. Jurnal Ekonomi Dan
Sosial, 16(1), 20–36.
Kurniawan, A. A., Hutadjulu, L. Y., & Simanjuntak, A. M. A. (2020). Pengaruh manajemen laba dan
corporate governance terhadap kecurangan laporan keuangan. Jurnal Akuntansi Dan
Keuangan Daerah, 15(1), 1–14. https://doi.org/10.52062/jakd.v15i1.1461
Kusumosari, L. (2020). Analisis kecurangan laporan keuangan melalui fraud hexagon pada
perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2014-2018.
http://lib.unnes.ac.id/40840/%0A
Loebbecke, J., Eining, M., & Willingham, J. (1989). Auditors’ experience with material
irregularities: Frequency, nature, and detestability. Auditing: A Journal of Practice and
Theory, 9(Fall), 1–28.
Marks, J. (2011). Why the fraud triangle is no longer enough. In Crowe Horwath LLP.
Matangkin, L., Ng, S., & Mardiana, A. (2018). Pengaruh kemampuan manajerial dan koneksi
politik terhadap reaksi investor dengan kecurangan laporan keungan sebagai variabel
mediasi. Simak, 16(02), 181–208. https://doi.org/10.35129/simak.v16i02.42
Mintara, M. B. M., & Hapsari, A. N. S. (2021). Pendeteksian kecurangan pelaporan keuangan
melalui fraud pentagon framework. Perspektif Akuntansi, 4(1), 35–58.
http://ejournal.uksw.edu/persi%0APendeteksian
Mulyadianto, A., Kirana, D. J., & Wijayanti, A. (2020). Kontribusi corporate governance dalam
mengurangi kecurangan laporan keuangan. Jurnal Ilmiah Akuntansi Kesatuan, 8(3), 297–
308. https://doi.org/10.37641/jiakes.v8i3.369
Nurbaiti, Z., & Hanafi, R. (2017). Analisis pengaruh fraud diamond dalam mendeteksi tingkat
accounting irregularities. Jurnal Akuntansi Indonesia, 6(2), 167–184.
https://doi.org/10.30659/jai.6.2.167-184
Nursiam, & Ghaisani, H. M. (2021). Pengaruh tata kelola perusahaan terhadap potensi
kecurangan laporan keuangan. Seminar Nasional Ahmad Dahlan Accounting Fair, 1–17.

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
 M. Rizkiawan, Subagio Subagio - 281

Priswita, F., & Taqwa, S. (2019). Pengaruh corporate governance terhadap kecurangan laporan
keuangan. Jurnal Eksplorasi Akuntansi, 1(4), 1705–1722.
http://jea.ppj.unp.ac.id/index.php/jea/issue/view/14%0D
Rachmawati, K. K., & Marsono. (2014). Pengaruh faktor-faktor dalam perspektif fraud triangle
terhadap fraudulent financial reporting. None, 3(2), 693–706.
Rahayu, D. (2020). Analisis pengaruh fraud triangle terhadap fradulent financial reporting
dengan kualitas audit sebagai variabel moderasi. Prosiding Seminar Nasional Pakar, 2–30.
Razali, W. A. A. W. M., & Arshad, R. (2014). Disclosure of corporate governance structure and the
likelihood of fraudulent financial reporting. Procedia - Social and Behavioral Sciences, 145,
243–253. https://doi.org/10.1016/j.sbspro.2014.06.032
Rusmana, O., & Tanjung, H. (2019). Identifikasi kecurangan laporan keuangan dengan fraud
pentagon studi empiris bumn terdaftar di Bursa Efek Indonesia. Jurnal Ekonomi, Bisnis,
Dan Akuntansi, 21(4). https://doi.org/10.32424/jeba.v21i4.1545
Sabrina, O. Z., Midiastuty, P. P., & Suranta, E. (2020). Pengaruh koneksitas organ corporate
governance, ineffective monitoring dan manajemen laba terhadap fraudulent financial
reporting. Jurnal Akuntansi Keuangan Dan Manajemen, 1(2), 109–122.
https://doi.org/10.35912/jakman.v1i2.11
Sai, C. N. (2013). The impact of politically-connected executives in fraudulent financial reporting:
Evidence based on the H shares1. African Journal of Business Management, 7(18), 1875–
1884. https://doi.org/10.5897/AJBM12.530
Saputra, M. A. R., & Kesumaningrum, N. D. (2017). Analisis faktor – faktor yang mempengaruhi
fraudulent financial reportingdengan perspektif fraud pentagonpada perusahaan
perbankan yang terdaftar di Bursa Efek Indonesia tahun 2011-2015 M. Jurnal Akuntansi
Dan Keuangan, 22(2), 121–134.
Sari, M. R., & Rofi, M. A. (2020). Faktor-faktor yang memotivasi kecurangan laporan keuangan.
Journal of Management and Business Review, 17(1), 79–107.
https://doi.org/10.34149/jmbr.v17i1.202
Sari, P. N., & Husadha, C. (2020). Pengungkapan corporate governance terhadap indikasi fraud
dalam pelaporan keuangan. Jurnal Ilmiah Akuntansi Dan Manajemen, 16(1), 46–56.
Sari, S. P., & Nugroho, N. K. (2020). Financial statements fraud dengan pendekatan vousinas
fraud hexagon model: tinjauan pada perusahaan terbuka di Indonesia. 1st Annual
Conference of Ihtifaz, 409–430.
http://seminar.uad.ac.id/index.php/ihtifaz/article/download/3641/1023
Septriani, Y., & Handayani, D. (2018). Mendeteksi kecurangan laporan keuangan dengan analisis
fraud pentagon. Jurnal Akuntansi, Keuangan Dan Bisnis, 11(1), 11–23.
http://jurnal.pcr.ac.id
Siddiq, R., Achyani, F., & Zulfikar. (2017). Fraud pentagon dalam mendeteksi financial statement.
Seminar Nasional Dan the 4Th Call Syariah Paper, ISSN 2460-0784, 1–14.
http://hdl.handle.net/11617/9210
Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement
fraud: The effectiveness of the fraud triangle and SAS No. 99. In International Journal of
Quality & Reliability Management (Vol. 32, Issue 3, pp. 53–81).
https://doi.org/10.1108/S1569-3732(2009)0000013005
Stuart, T., & Wang, Y. (2016). Who cooks the books in China, and does it pay? Evidence from
private, high-technology firms. Strategic Management Journal, 37(13), 2658–2676.
https://doi.org/10.1002/smj.2466
Sugiyono, P. D. (2017). Metode penelitian bisnis: pendekatan kuantitatif, kualitatif, kombinasi, dan
R&D. Alfabeta.
Tiffani, L., & Marfuah. (2015). Deteksi financial statement fraud dengan analisis fraud triangle
pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi Dan

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)
282 – Fraud Hexagon and corporate governance analysis on the potential fraud in financial statements

Auditing Indonesia, 19(2), 112–125. https://doi.org/10.20885/jaai.vol19.iss2.art3

Tuanakotta, T. M. (2013). Mendeteksi manipulasi laporan keuangan. Jakarta: Salemba Empat.
Vidella, A, Afiah, E. (2020). Financial stability, financial targets, effective monitoring dan
rationalization dan kecurangan laporan keuangan. Jurnal Revenue, 01(01), 90–100.
https://doi.org/10.46306/rev.v1i1
Vousinas, G. L. (2019). Advancing theory of fraud: the S.C.O.R.E. model. Journal of Financial
Crime, 26(1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128
Wicaksana, E. A., & Suryandari, D. (2019). Pendeteksian kecurangan laporan keuangan pada
perusahaan pertambangan di bursa efek indonesia. Journal of Accounting and Management
Information Systems, 4(1), 44–59.
Wicaksono, G. S., & Chariri, A. (2015). Mekanisme corporate governance dan kemungkinan
kecurangan dalam pelaporan keuangan. Diponegoro Journal of Accounting, 4(4), 552–563.
Widarjono, A. (2010). Analisis Statistika Multivariat Terapan. Yogyakarta: UPP STIM YKPN.
Widodo, A., & Syafruddin, M. (2017). Pengaruh pengungkapan struktur corporate governance
terhadap. Diponegoro Journal of Accounting, 6(4), 1–10.
Wolfe, D. T., & Hermanson, D. R. (2004). The fraud diamond : considering the four elements of
fraud. The CPA Journal, 74(12), 38–42.
Yasmin, S. N., Ramadhaniyah, R., & Komaruudin. (2020). Pengaruh manajemen laba dan
corporate governance pada perusahaan transportasi yang listing di BEI. Jurnal Al-Iqtishad
Edisi, 16(2), 138–151.
Young, B. (2005). Related-party transactions: Why they matter and what is disclosed. The
Corporate Governance Advisor, 13(4), 1–7.

Copyright © 2022, Integritas: Jurnal Antikorupsi

2615-7977 (ISSN Online) | 2477-118X (ISSN Print)