Analysis of the Effect of the Fraud Pentagon in Detecting Fraudulent Financial Reporting (Empirical Study of Property, Real Estate and Construction Companies Listed on the IDX in 2019-2021)

Fraud is an act of fraud or fraud that will result in unfavorable benefits for individuals or entities and external parties to the company, this action is carried out by individuals or entities who are even aware of their actions. This fraud pentagon theory was put forward by Crowe Howarth (2011), namely pressure, opportunity, rationalization, capability and arrogance. The purpose of this study is to determine how the fraud pentagon factors affect financial statement fraud. In this study, fraud pentagon is proxied as, external pressure, financial targets, ineffective monitoring, change of auditor, change of director, and family firms are all independent variables. The data used in this study are secondary data obtained from the company's annual financial reporting. The population used consists of property, real estate and construction companies listed on the Indonesia Stock Exchange in 2019-2021. The purposive sampling technique was used to determine the research sample with the results of 53 companies that met the criteria. Logistic regression method analysis is used as a research method. The results showed that external pressure and financial targets have a significant effect on fraudulent financial reporting. while ineffective monitoring, change of auditor, change of director, and family firms have no significant effect on fraudulent financial reporting.