Detection of Fraud Diamond Theory On M-Score With Profit and Loss Sharing As A Moderating Variable In Islamic Banking

This study aims to determine the effect of detecting fraud using the Fraud Diamond Theory on the M-Score, with Profit and Loss Sharing as a Moderating Variable in Islamic banking in Indonesia during the period 2020–2022. This research is a quantitative study using secondary data from quarterly annual reports of companies for the period 2020–2022. The sampling method used is purposive sampling, resulting in a research sample of 5 companies or a total of 60 sample data points. The study results show that External Pressure, Change of Auditor, and Change of Board of Director have an impact on the M-Score. Additionally, the Change of Board of Director, moderated by Profit and Loss Sharing, weakens its relationship with the M-Score. Meanwhile, Financial Stability, Ineffective Monitoring, and Profit and Loss Sharing do not affect the M-Score. Furthermore, Financial Stability, External Pressure, Ineffective Monitoring, and Change of Auditor, when moderated by Profit and Loss Sharing, neither strengthen nor weaken their relationship with the M-Score.