FRAUDULENT FINANCIAL REPORTING: FRAUD PENTAGON ANALYSIS IN BANKING AND FINANCIAL SECTOR COMPANIES LISTED IN INDONESIA STOCK EXCHANGE 2016-2018

Fraudulent financial statements is a fraud form which is generally difficult to detect. The study was intended to examine the effect of fraud pentagon theory in explaining phenomenon fraudulent financial statements. The research population was all financial sector companies listed on the Indonesia Stock Exchange during the 2016-2018 period. This research uses 6 (six) independent variables to achieve this objective, namely: Financial targets, External pressure, Ineffective monitoring, Auditor change, Change of directors, and Frequent number of CEO's picture. The dependent variable was used is fraudulent financial reporting that proxied by F-Score model. Purposive sampling technique was used to determine the research sample and data analysis techniques used multiple regression. Based on the test results, it shows that financial target, external pressure, ineffective monitoring, auditor change, changes in directors, and frequent number of CEO’s picture have no significant effect on the fraudulent financial reporting. Keywords : Fraudulent Financial Statement, Fraud Pentagon, Fraud Score Model