Track: Material Flow Cost Accounting (MFCA)
Fraud causes losses and cheating in financial statements is done intentionally by presenting and manipulating the value of material can mislead stakeholders in decision making for the company in the business world that reaches trillions of rupiah. This study aims to test whether pressure, opportunity, rationalization, capability, and arrogance affect the occurrence of fraud in financial statements. This research uses 20 companies, so a total was 120 financial reporting banking companies in Indonesia listed on the Stock Exchange from 2012-2017. The data used in this study is secondary data obtained from the company’s annual financial statements. A purposive sampling technique was used to determine the research sample. Factor analysis and simple linear regression analysis methods were used for the research methods. The results showed pressure, rationalization, and capability have a significant with fraudulence financial reporting. But the other variable which are opportunity and arrogance have no effect with fraudulence financial reporting.