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Abstract

This research aimed to get empirical evidence in detecting financial statement fraud with fraud perspective diamond. Research by Sihombing (2014) explained that diamond fraud is an outlook and new concepts about the phenomenon of fraud raised by Wolfe and Hermanson (2004). Proxy variables of this research using pressure that is proxied by financial stability, external pressure, and financial targets; opportunity is proxied by ineffective monitoring and nature of the industry; rationalization is proxied by the turn of the auditor and capability is proxied by the change of directors. This research examined the empirical evidence to detect financial statement fraud with fraud perspective diamond. This study refers to the banking company listed in Indonesia Stock Exchange. The results of this research indicate that the variable pressure is proxied by financial stability, external pressure, and financial targets; Opportunity is proxied by ineffective monitoring and nature of the industry; Rationalization is proxied by the turn of the auditor and Capability proxied by the change of directors. But in this research proves that the Variable Pressure with proxies financial stability, external pressure and financial targets; Opportunity Variable, Nature of the Industry, Ineffective Monitoring and Rationalization variables change in the Auditor does not affect the financial statement fraud while Capability variable with proxy turn of directors gave a positive and significant effect on the Financial Statement Fraud.

Keyword: Fraud triangle, diamond fraud, financial statement fraud

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