Financial statement fraud remains a major challenge in maintaining the integrity of corporate financial information, particularly in the manufacturing sector, which is characterized by high operational complexity. This study aims to detect indications of financial statement fraud by applying the Fraud Hexagon framework, which includes the elements of pressure, opportunity, rationalization, capability, ego, and collusion. Additionally, the study examines the moderating role of the audit committee in this relationship. The research was conducted on manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. Using a purposive sampling technique, a total of 119 companies were selected, resulting in 595 financial observations analyzed. A quantitative approach was employed, utilizing Moderated Regression Analysis (MRA) and the Fixed Effect Model (FEM). The results indicate that pressure and opportunity have a significant positive effect on financial statement fraud, whereas rationalization and capability show a significant negative effect. Meanwhile, ego and collusion were found to have no significant effect. The audit committee was shown to strengthen the effects of pressure, rationalization, and capability, and to weaken the effect of opportunity. However, it did not moderate the influence of ego and collusion.
Mahayani et al. (Tue,) studied this question.
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