Fraud Pentagon Model for Detecting Fraudulent Financial Reporting in Banking Sector
Bambang Leo Handoko1, Ang Swat Lin Lindawati2, Margaretha Vienna3
1Bambang Leo Handoko*, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
2Ang Swat Lin Lindawati, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
3Margaretha Vienna, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
Manuscript received on March 12, 2020. | Revised Manuscript received on March 25, 2020. | Manuscript published on March 30, 2020. | PP: 2832-2838 | Volume-8 Issue-6, March 2020. | Retrieval Number: F8380038620/2020©BEIESP | DOI: 10.35940/ijrte.F8380.038620
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Many discussions and opinions of experts who produce endangement or tools to detect the possibility of fraud in reporting financial performance. One of the most recent trends is the Pentagon fraud approach. Pentagon is a form that has five sides, there are five categories of causes of fraud in pentagon fraud, namely: pressure, opportunity, rationalization, competence and arrogance. Our research takes samples from banks, because the sector is the most common case of fraud. We made this quantitative secondary data-based research to have written evidence for reference in banking sectors. We use cross section data from 2016 year ends up to 2018. We own 35 samples from three years period, the total of 105 samples. We use ordinary least square using nine independent variables and one dependent variable. After conducting this research, we found that opportunity is the most influencing factor for company in banking sector to do fraud. While the others factor has no significant effect.
Keywords: Internal, Control, Leadership, Compensation, System, Fraud, Prevention.
Scope of the Article: Industrial, Financial and Scientific Applications of all Kind.