Document Type : Review Article


1 Universitas Syiah Kuala

2 Akuntansi, Ekonomi dan Bisnis, Universitas Syiah Kuala


This paper aims to test the Crowes Pentagon Theory of Fraud in detecting financial statement fraud and provide further explanation of the fraud indicators in the Pentagon Fraud Theory consisting of pressure, opportunity, competence, rationalization and arrogance. (arrogance) can detect fraud in financial reporting in manufacturing companies listed on the Indonesia Stock Exchange in 2017-2021. The data used in this research was obtained from annual reports and websites of manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2021 period. The sample selection technique in this study used simple random sampling to obtain 655 company-years. The data analysis techniques used are descriptive statistical and multiple linear regression analyses. The results show that the fraud indicators in the fraud pentagon theory represented by financial stability, leverage, ineffective monitoring and director turnover, can detect financial statement fraud, while other indicators - auditor changes and a large number of CEO photos - cannot detect financial statement fraud.


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