Keyword

Corporate Governance, Accounting Fraud, Fraud Diamond

Abstract

This research aimed to analyze the risk factor of fraud diamond model towards accounting fraud and corporate governance as a moderating variable in relation with risk factor in fraud diamond model towards accounting fraud. This research using 12 fraud companies and 32 non-fraud companies listed by Indonesia stock exchange that breaking the article VIII.G.7issued by Financial Services Authority. With using logistic regression, the research result shows that only change in direction that is affect significantly towards accounting fraud. The next result, it shows that board of commissioners, independent commissioners and institution ownershipbe able to weaken the relation of change in direction towards accounting fraud. This research can suggest to the investors to be more careful in investing their fund. Especially, in the company that carries out the higher change in direction, because it tends to have accounting frauds. Furthermore, the company can improve the board of commissioners, independent commissioners and iinstitution ownershipp, so that the level of accounting fraud can be lowered.


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