The Influence of Diamond Fraud, Audit Committee and Leverage on Financial Report Fraud

Abstract

This research aims to explain the influence of fraud diamonds, audit committees and leverage on fraudulent financial reports in financial companies listed on the Indonesia Stock Exchange during the 2019-2022 period. This research uses 144 companies as samples which have been selected using purposive sampling techniques. The data used is secondary data obtained from financial reports. The data obtained was processed using logistic regression analysis techniques with the help of the EViews 10 software application. The results of this research show that fraud diamonds have no effect on financial report fraud, while audit committees have a negative effect and leverage has a positive effect on the practice of financial report fraud in Indonesia. The results of this research indicate that an optimal audit committee will minimize the occurrence of fraud in the company's financial reports.