SCORRE approach as an instrument for detecting fraudulent financial reporting

Authors

  • Hermiyetti Accounting Study Program, Faculty of Economics and Social Sciences, Bakrie University Jl. H.R. Rasuna Said Kav. C-22, Kuningan, South Jakarta, Indonesia https://orcid.org/0000-0003-1513-1655

DOI:

https://doi.org/10.36096/ijbes.v4i4.353

Keywords:

SCORRE, Fraud, Financial Report

Abstract

This study aims to analyze S.C.O.R.R.E. (stimulus, capability, opportunity, capability, cooperation, and ego) as the cause of financial statement fraud. The study was conducted on B.U.M.N. companies in Indonesia as a population with published financial statement analysis units with a total of 122 as samples obtained by purposive sampling technique after being selected for the period 2014-2018 (five years). The Binary Logistics regression technique is used in analyzing data with the dependent variable using a nominal scale (0-1) as a measurement of financial statement fraud. The study concludes that not all measurement dimensions are predicted to affect the occurrence of fraud in financial statements, while measurements using other dimensions prove a significant influence on the event of financial statement manipulation. The study results provide a reference to the potential for preventing financial statement fraud by identifying several measurement dimensions that can trigger financial statement fraud. Research using Binary Logistics regression would be better confirmed through observation, either by interview or primary data that supports and predicts the results of the analysis that was not carried out in this study, so the conclusions obtained have not fully concluded the existing phenomena.

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Published

2022-10-09

How to Cite

Hermiyetti. (2022). SCORRE approach as an instrument for detecting fraudulent financial reporting. International Journal of Business Ecosystem & Strategy (2687-2293), 4(4), 118–131. https://doi.org/10.36096/ijbes.v4i4.353

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Section

Financial and Accounting Ecosystem