Safriliana, Retna and Ramadhan, Yossy Kautsar (2025) Financial Statement Fraud: Determinant of Hexagon Fraud Theory with Audit Committee as a Moderating Variable. Journal Return: Study of Management, Economic and Business, 4 (8). pp. 677-691. ISSN e-ISSN: 2963-3699; p-ISSN: 2964-0121

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Abstract

This study aims to determine the potential for financial statement fraud using fraud hexagon theory analysis. Fraud hexagon is a concept that explains the factors that cause someone to commit fraud, namely pressure, capability, collusion, opportunity, rationalization, and arrogance. In this study, the pressure factor is proxied by financial stability. The capability factor is proxied by a change of director. The collusion factor is proxied by state-owned enterprises. The opportunity factor is proxied by the nature of the industry. The rationalization factor is proxied by a change in auditor. Finally, the arrogance factor is proxied by the frequency of the CEO's pictures. The audit committee is added as a moderating variable. This study uses the F-Score Model to assess the potential for financial statement fraud. This research was conducted using quantitative methods; the analysis techniques applied were logistic regression analysis and hypothesis testing using the T-test, as well as the coefficient of determination test. The results indicate that the rationalization variable, proxied by change in auditor, has a significant positive effect in detecting potential financial statement fraud. Meanwhile, the pressure variable proxied by financial stability; the capability variable proxied by change of director; the collusion variable; the opportunity variable; and the arrogance variable have no effect on detecting potential financial statement fraud. Furthermore, the audit committee is able to moderate the effect of collusion, proxied by state-owned enterprises, on the potential for financial statement fraud.

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