FRAUD PENTAGON DALAM MENDETEKSI FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN ASURANSI

Abstract

This study aims to examine factors that potentially influence the occurrence of fraudulent financial reporting in insurance companies by adopting the fraud pentagon theory framework. The research focuses on insurance companies listed on the Indonesia Stock Exchange during the 2020–2024 period. The dependent variable is fraudulent financial reporting, while the independent variables include leverage, financial target, financial stability, independent commissioners, auditor switching, CEO financial expertise, and CEO duality. The data were obtained from annual reports and analyzed using logistic regression. The results indicate that CEO duality has a significant effect on fraudulent financial reporting. Meanwhile, leverage, financial target, financial stability, independent commissioners, auditor switching, and CEO financial expertise are not proven to have a significant effect. These findings suggest that the concentration of power in top management plays an important role in increasing the risk of financial reporting fraud in the insurance industry.