FRAUD STAR THEORY: DETECTION OF FINANCIAL STATEMENT FRAUD

Abstract

Financial Statement Fraud Detection aims to determine whether or not fraud exists in the presented financial
statements. This study was conducted to determine the influence of Personal Financial Need, Change in
Director, Effective Monitoring, Change in Auditor, and Lack of Integrity on Financial Statement Fraud. The
data source in this study used secondary data obtained from the annual reports of stateowned enterprises
listed on the Indonesia Stock Exchange (IDX) for the 2021-2023 period. The data collection technique used a
purposive sampling method. A total of 34 companies were sampled, resulting in a total sample of 28
companies. The data analysis method used was a panel data regression model using Eviews 12 software. The
results of the study showed that Personal Financial Need (PFN) had no effect on Financial Statement Fraud
(FSF), Change in Director (CID) had no effect on Financial Statement Fraud (FSF), Effective Monitoring
(EM) has an impact and is significant on Financial Statement Fraud (FSF), Change in Auditor (CIA) had no
effect on Financial Statement Fraud (FSF), and Lack of Integrity (LOI) had no effect on Financial Statement
Fraud (FSF).