Detecting Financial Statement Fraud Using Diamond Model: Evidence in Indonesia

Abstract

—This study aims to determine the factors that affect financial statement fraud. The number of observations is 72 which 18 companies of transportation and infrastructure sectors listed in the Indonesian Stock Exchange during 2015-2018. The methods used in this study are balanced panel data with a random effect model. The result showed is only the nature of the industry affects financial statement fraud. The scientific contribution of this research shows the important role of the high receivables which is an indication that the company's cash turnover is not good and will reduce the amount of cash for operating activities and cause management to manipulate financial statements.