Fraud Hexagon and Fraudulent Financial Statement: Comparison Between OMI and Beneish Model

DOI

10.2991/aebmr.k.220204.001How to use a DOI?

Keywords

Hexagon Fraud; Overall Manipulation Index; Fraudulent Financial Statement

Abstract

The leading cause of financial statement fraud (FFS) is a “poor tone” carried out by top parties. This study examines the effect of elements in Hexagon Fraud on FFS. This study uses logistic regression analysis and a random effect regression model. The data used are all non-financial companies in Indonesia in 2016-2020. We compare the accuracy of the M-score findings using the Overall Manipulation Index (OMI) approach. The results showed slightly different findings when FFS was measured using two different measurements. Rationalization is proven to affect the occurrence of FFS; both measured using the M-score and OMI. Stimulus and opportunity partially influence the occurrence of FFS. This study also demonstrates which elements in the financial statements are often used as a tool to perform FFS and finds evidence that DEPI is the item most frequently used to perform FFS. On the other hand, the sector that is indicated to conduct FFS often is the cyclical consumer sector.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Dwiyanjana Santyo Nugroho
AU  - Vera Diyanty
PY  - 2022
DA  - 2022/02/10
TI  - Fraud Hexagon and Fraudulent Financial Statement: Comparison Between OMI and Beneish Model
BT  - Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)
PB  - Atlantis Press
SP  - 1
EP  - 10
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220204.001
DO  - 10.2991/aebmr.k.220204.001
ID  - Nugroho2022
ER  -