Application of Beneish M-Score to Detech Fraudulent Financial Statements in State-Owned Company in Indonesia

Latifa Putri Andani; Gatot Iwan Kurniawan

doi:10.52250/bmr.v12i1.733

Latifa Putri Andani Sekolah Tinggi Ilmu Ekonomi (STIE) Ekuitas
Gatot Iwan Kurniawan Sekolah Tinggi Ilmu Ekonomi (STIE) Ekuitas

DOI: https://doi.org/10.52250/bmr.v12i1.733

Keywords: Beneish M-score, Financial Statement, Fraud

Abstract

Introduction/Main Objectives: This study aims to determine which State-Owned Company are included in the manipulator, non-manipulator, and gray company groups. Background Problems: According to a study conducted in 2016 by the Association of Certified Fraud Examiners, the majority Fraud cases involved 81.2% of government agencies, 8.1% of State-Owned Enterprises, and 2.3% of private companies. The businesses designated by of State-Owned Company caused the most losses to the industrial sector due to fraud at 58.8%. Research Methods: This research uses a quantitative descriptive method. The objects in this study are State-Owned Company companies in Indonesia in 2018-2021. The research sample used a purposive sampling technique. Data analysis was performed using seven types of financial ratios contained in the Beneish M-score method. Finding/Results: The results showed that in 2018 there was 1 company that was included in the manipulator group, 22 companies were included in the non-manipulator group, and no company was included in the gray company group in 2018. Then in 2019 there were 3 companies that were included in the manipulator group, 17 companies are included in the non-manipulator group, and 3 companies are included in the gray company group. In 2020 there were 5 companies included in the manipulator, 16 non-manipulator companies, 2 companies included in the gray company group. And in the last year, namely 2021, there will be 1 company that is included in the manipulator group, 22 non-manipulator companies, and no company that is included in the gray company group in 2021.

Author Biography

Gatot Iwan Kurniawan, Sekolah Tinggi Ilmu Ekonomi (STIE) Ekuitas

Management Study Program

References

Association of Certified Fraud Examiners (ACFE). (2018). Report To the Nations: Global Study on Occupational Fraud and Abuse. Accessed on October 26, 2022 at http://www.acfe.com/rttn/docs/2016-report-tonations.pdf

Association of Certified Fraud Examiners (ACFE) Indonesia Chapter . (2019).

Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5), 24-36.

Christy, Y. E., & Stephanus, D. S. (2018). Pendeteksian kecurangan laporan keuangan dengan Beneish M-score pada perusahaan perbankan terbuka. Jurnal Akuntansi Bisnis, 16(2), 148.

Elestine, A. Y., & Palupi, P. T. (2019, April). Pendeteksian Kecurangan Laporan Keuangan Dengan Beneish M-Score Pada Perusahaan LQ 45. In Prosiding Seminar Nasional Pakar (pp. 2-33).

Hani, Q. A. (2018). PENDETEKSIAN FINANCIAL STATEMENT FRAUD MENGGUNAKAN BENEISH M-SCORE PADA PERUSAHAAN JII DAN NON JII (Studi Empiris Perusahaan JII dan Non JII yang Listing di BEI 2014-2016).

Hantono. (2018). Deteksi Financial Statement Fraud Melalui Model Beneish Pada Perusahaan BUMN. Jurnal Manajemen Bisnis dan Inovasi, 5(3), 135-150

Jefri, R., & Mediaty, M. (2016). Pendeteksian Kecurangan (Fraud) Laporan Keuangan. Jurnal Akuntansi STIE Muhammadiyah Palopo, 1(2), 56 – 64

https://accounting.binus.ac.id/2019/07/16/memahami-fraud-dalam-laporan-keuangan/, accessed on 23 September 2022

Latifatussolikhah, N., & Pertiwi, D. A. (2020). Deteksi Financial Statement Fraud dengan Metode Beneish Ratio Index (Studi Kasus Perusahaan yang Melakukan Penawaran Saham Perdana (IPO) di Bursa Efek Indonesia Tahun 2018). JFAS: Journal of Finance and Accounting Studies, 2(3), 162-176.

M-Score, K. M. B. (2016). Detecting financial statement fraud by Malaysian public listed companies: The reliability of the Beneish M-Score model. Jurnal Pengurusan, 46, 23-32.

Mintara, M. B. M., & Hapsari, A. N. S. (2021). Pendeteksian Kecurangan Pelaporan Keuangan Melalui Fraud Pentagon Framework. Perspektif Akuntansi, 4(1), 35-58.

Putri, A. (2017). Kajian: Fraud (Kecurangan) Laporan Keuangan Anisa Putri. SE, MM.

Omar, N., Koya, R. K., Sanusi, Z. M., & Shafie, N. A. (2014). Financial statement fraud: A case examination using Beneish Model and ratio analysis. International Journal of Trade, Economics and Finance, 5(2), 184.