Fraudulent Financial Statements Detection in Indonesian Shariah Bank

Abstract

This study aims to detect fraudulent financial statements using the S.C.O.R.E. model in Indonesian Sharia Commercial Banks. This research uses quantitative research methods—hypothesis testing using a logistic regression analysis model. The research sample is 11 Shariah commercial banks registered with the Indonesian Financial Services Authority. These research results are financial targets, financial stability, external pressures, changes in directors, ineffective monitoring, and external auditors' changes who cannot detect fraudulent financial statements. However, the number of CEO pictures engraved in the annual report can detect fraudulent financial statements. The results of this study again show inconsistencies with the results of various previous studies. The research results confirm that the most common driving factors in cheating are feelings of rights and a desire for power/ego.