Author(s): Gunarianto, Endah Puspitosarie, Muchlis Mas'ud
Financial statement fraud is the type of fraud that occurs with the least frequency but causes large average losses. The purpose of this study was to determine the effect of pressure, opportunity, and rationalization on fraudulent acts of financial statements proxies by earnings management. The population used in this study is banking sector companies listed on the Indonesia Stock Exchange for the period 2019-2021 with a sampling technique based on criteria, 1. Banking sector companies go public, 2. Companies that have deposited their annual financial statements; and 3. Banking entities that only earn profits in the period 2019 to 2021. The total sample is 75 banking and financial service companies. Hypothesis testing was done by logistic regression using SPSS software. The results showed that simultaneously pressure, opportunity, and rationalization effect d fraudulent financial statements in banking sector companies. Partially, the pressure factor as measured by the average financial stability, external pressure and financial targets has a significant effect on the detection of financial statement fraud. The opportunity factor as measured by the average nature of the industry and effective monitoring is proven to have a significant effect on the detection of financial statement fraud. Meanwhile, the rationalization factor measured by total asset accruals has no effect on the detection of fraudulent financial statements.