Track: Quality Control and Management

Abstract

The purpose of this study is to examine empirically the effect of manager attitudes on fraudulent financial reporting, subjective norms of managers, perceived behavioral control towards the intention of managers to commit fraudulent financial reporting. This study examines the effect of the intention of managers to commit fraudulent financial reporting to the behavior of managers to commit fraudulent financial reporting. Next, this study also examines quality control and management with good corporate governance as moderating the relationship of intention of managers to commit fraudulent financial reporting to the behavior of managers to commit fraudulent financial reporting. The population of this study is the financial manager of all manufacturing companies listed on the Indonesia Stock Exchange. The sample selection method with purposive sampling method. In this study hypothesis testing was carried out with Partial Least Squares Structural Equation Modeling performed to analyze the survey responses of 257 financial manager. The data processing of this research uses the Warp PLS application version 5.0. The results indicate that subjective norms, perceived behavioral control and manager's moral obligations have a significant negative effect on the intention of managers to commit financial reporting fraud. The intention of managers to commit financial reporting fraud has a significant positive effect on the behavior of managers doing fraudulent financial reporting. Quality control and management with good corporate governance as a moderating variable is proven to weaken the relationship of intention of managers to commit fraudulent financial reporting to the behavior of managers committing fraudulent financial reporting. However, the results of hypothesis testing prove the manager's attitude towards fraudulent financial reporting does not significantly influence the intention of managers to commit fraudulent financial reporting. In the quality control and management company, evaluation and control are important components to ensure that the goals the company wants to achieve are well implemented and preventing fraudulent financial reporting can be improve function by implementing good corporate governance.