The Moderating Effect of Audit Quality on Fraudulent Financial Statement

The fraud hexagon theory was used in this study to examine the moderating impact of audit quality on fraudulent financial statements. The sample for this study is made up of property, real estate, and building construction businesses that were listed on the Indonesia Stock Exchange between 2017 and 2020; 64 sample data were gathered using the purposive sampling method and preset criteria. Multiple linear regression analysis and moderated regression analysis (MRA) were used in the tests for this investigation. The results show that the nature of industry and arrogance affect fraudulent financial statement, while financial target, TATA, CEO education, and collusion have no effect on fraudulent financial statement. Then audit quality is able to moderate by weakening the nature of industry, arrogance, and collusion relationships with fraudulent financial statements. Meanwhile, audit quality is not able to moderate the relationship between financial targets, TATA, and CEO education with fraudulent financial statements.