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Received: 20.02.2022 Accepted: 12.04.2022 Published: 01.06.2022 DOI: 10.47750/QAS/23.188.22
Abstract
This study aims to determine the Triangle Perspective: Neural Network Used in Fraud Analysis. Application of the Artificial Neural Network method to investigate and detect fraud in companies. The number of samples used in this study was 102 companies. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2019 period. The test was carried out using an artificial neural network (ANN) method using the SPSS 25 application. External pressure does not affect fraudulent financial statements, and financial stability significantly affects financial statement fraud. The nature of the industry has a significant effect on financial statement fraud, inventory to sales ratio has a significant effect on financial statement fraud, the ineffective monitoring variable has no significant effect on financial statement fraud, gross profit to total assets has a significant effect on financial statement fraud. Return on assets has no significant effect on financial statement fraud, net profit margin (NPM) has no significant effect on financial statement fraud, firm liquidity (WCTA) has a significant effect on financial statement fraud.
Keywords: artificial neural network, financial statement fraud, pressure, opportunity, rationalization.
Introduction
Fraudulent financial reporting involves the manipulation of financial accounts by overstating assets, revenue and profit or understating liabilities, expenses or losses. These issues are bothersome to the investors, creditors and the public, as a whole, because of the huge impact on all of them. Employees lose their jobs, and investors do not get optimal returns on their investments, creditors are unable to get their payments, and, as a result, the public lose their faith in the legislation. Meanwhile, companies and professionals such as auditors and accountants need to be more vigilant to mitigate and combat financial fraud. In determining investment decisions in an entity or company, investors will first conduct fundamental analysis, or in other words, investors will first look at the company's prospects. Considering that financial statements are very important for a company, sometimes companies cover up the actual situation regarding the financial situation by presenting different financial statements. The Association of Certified Fraud Examiners (ACFE) Indonesia recorded the most detrimental number of frauds in Indonesia in 2019 where corruption was 167 respondents with a percentage of 69.9% with...