THE INFLUENCE OF PENTAGON FRAUD ON FRAUDULENT FINANCIAL REPORTING

Abstract

This research aims to determine the influence of financial targets, ineffective supervision, auditor changes, director changes and the number of CEO photos on fraudulent financial reporting. The population of this research is manufacturing companies for the 2020-2022 period. This research used secondary data by obtaining 384 research samples. This type of research is quantitative research. Research data was analyzed using the logistic regression method using a significance level of 5%. The results of the research show that financial targets have no effect on fraudulent financial reporting, next, ineffective supervision has a significant effect on fraudulent financial reporting. Furthermore, changing auditors and changing directors have a significant and positive influence on fraudulent financial reporting. Meanwhile, the frequency of CEO photos does not have a significant influence on fraudulent financial reporting.

Keywords: Financial Target, Ineffective Monitoring, Change in Auditor, Change in Director, Frequent Number Of CEO’ Picture and on Fraudulent Financial Reporting