KnE Social Sciences
ISSN: 2518-668X
The latest conference proceedings on humanities, arts and social sciences.
Testing of Fraudulent Financial Statements With the Beneish M-Score Model for Manufacturing Companies Listed in the Indonesian Stock Exchange
Published date: Jul 08 2021
Journal Title: KnE Social Sciences
Issue title: Academic International Conference on Literacy and Novelty
Pages: 125–133
Authors:
Abstract:
Fraudulent financial statements are disclosures of a company’s financial condition which are intentionally made inaccurate by eliminating values. This study aimed to examine the effect of using the Beneish M-Score model against fraud reports of manufacturing companies listed in the Indonesian Stock Exchange in 2016 -2018. Purposive sampling was used and the sample consisted of 69 companies. The results showed that the Days Sales in Receivables Index, Gross Margin Index and Total Accrual to Total Asset had a significant positive effect on financial statement fraud, while the Asset Quality Index, Sales Growth Index, Depreciation Index, Sales General and Administrative Expenses Index, and Leverage Index did not affect fraudulent financial statements.
Keywords: fraud, Beneish, logistic regression
References:
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