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This study aims to analyze the application of the Fraud Diamond Theory in detecting fraudulent financial statements in manufacturing companies in Indonesia. The Fraud Diamond Theory, which consists of four key elements pressure, opportunity, rationalization, and capability provides a comprehensive framework for understanding the factors that drive individuals to commit financial fraud. Using a sample of financial data from selected manufacturing firms, this research examines how these four elements contribute to fraudulent behavior and evaluates their effectiveness in identifying financial statement irregularities. The study utilizes quantitative methods, employing financial ratio analysis, statistical tests, and data on corporate governance to assess the likelihood of fraud within these companies. The results indicate that the elements of pressure and opportunity play a significant role in facilitating fraudulent activities, while rationalization and capability also contribute but are more difficult to quantify. The findings suggest that incorporating Fraud Diamond indicators into corporate governance and internal audit systems can enhance the early detection of financial fraud in manufacturing firms in Indonesia. This research contributes to the growing body of literature on fraud detection, offering insights for regulators, auditors, and corporate stakeholders to strengthen financial oversight and prevent financial misstatements. [ABSTRACT FROM AUTHOR]

Fraud remains a challenge for corporate and local governments in Ghana. Therefore, this study probes behavior predictors using the fraud diamond theory. The study used questionnaires to draw data. Results of data (n = 624) analysis based on the structural equation modeling confirmed the positive relationship between pressure, opportunity, rationalization and capability, and behavior intention. Opposed to erstwhile for-profit studies, rationalization was dominant, emphasizing nuanced behavior outcomes across domains. Situating the theory within the local government context, the investigation backs up the theory's suitability for behavior prediction whilst inter alia forefronting anti-fraud success as contingent on decoupling public administration from partisan politics. [ABSTRACT FROM AUTHOR]