Fraud Triangle Determinants of Financial Statement Fraud: The Moderating Role of Audit Committees in Indonesian Construction Firms
DOI:
https://doi.org/10.54408/jabter.v5i4.616Keywords:
Financial Target, External Pressure, Ineffective Monitoring, Change in Auditor, Fraud Financial Reporting, Audit CommitteeAbstract
This study investigates the influence of financial targets, external pressure, ineffective monitoring, and auditor turnover on fraudulent financial reporting, while also examining the moderating role of the audit committee. The sample comprises construction sub-sector firms listed on the Indonesia Stock Exchange over the 2020–2025 period, selected using purposive sampling, resulting in 90 firm observations. This research adopts a quantitative approach utilizing secondary data derived from annual reports obtained through the Indonesia Stock Exchange and respective corporate websites. Data analysis is conducted using multiple regression and moderated regression analysis (MRA). The findings indicate that financial targets, ineffective monitoring, and auditor turnover are positively associated with fraudulent financial reporting, whereas external pressure exhibits a negative relationship. Furthermore, the audit committee does not significantly moderate the effects of financial targets, ineffective monitoring, and auditor turnover; however, it significantly moderates the relationship between external pressure and fraudulent financial reporting.
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