INFLUENCE OF FINANCIAL STABILITY, INEFFECTIVE MONITORING AND AUDITOR CHANGE ON FRAUDULENT FINANCIAL REPORTING ( An Empirical Study in Listed Manufacturing Company Financial Report 2008-2011)

VIOLITA, PUSPA ERIS (2013) INFLUENCE OF FINANCIAL STABILITY, INEFFECTIVE MONITORING AND AUDITOR CHANGE ON FRAUDULENT FINANCIAL REPORTING ( An Empirical Study in Listed Manufacturing Company Financial Report 2008-2011). Diploma thesis, Universitas Andalas.

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Abstract

This research is aimed to obtain empirical evidence about the effectiveness of fraud triangle in detecting fraudulent financial reporting. The variables of the fraud triangle theory that is used is a proxy financial stability by NICFOTA and SGROW, ineffective monitoring by IC, and auditor change by AC proxy. Detecting fraudulent financial reporting in this research uses a proxy of earnings management with discretionary accrual as the dependent variable. Population of this research is manufacturing sector companies listed in Indonesia Stock Exchange year of 2008-2011. Total sample obtained is 200 companies, data analysis was performed with the classical test assumption and hypothesis testing using linear regression. Results of this research indicate that financial stability (NICFOTA) and ineffective monitoring (IC) has an influence on fraudulent financial reporting. Whereas financial stability (SGROW) and auditor change (AC) do not have an influence on fraudulent financial reporting. Keywords : fraudulent financial reporting, earnings management, financial stability, ineffective monitoring, auditor change.

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