Effect of financial liquidity, audit rotation and audit tenure on financial statement fraud

Abstract

Cases of financial statement fraud today are increasingly prevalent. Cases of this type of fraud result in material losses that are not insignificant. Many investors and creditors as well as the general public are victims of this type of fraud. Not only in European and US countries, in Indonesia there are also many cases of fraudulent financial statements. Financial statement fraud can occur due to many things. This study aims to analyze the effect of financial liquidity, audit rotation and audit tenure on financial statement fraud. Population determined is a manufacturing company with a food and beverage subsector listed on the Indonesia Stock Exchange period 2013-2018. The sample selection is done by purposive sampling technique, the sample results that meet the criteria are 78 samples. The research method used is multiple linear methods, where the results of the research partially show that the liquidity financial variable does not significantly affect fraudulent financial statements, variable audit rotations significantly influence fraudulent financial statements, and variable audit tenure does not significantly influence financial statement fraud.