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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]

Public procurement fraud by government officials has resulted in a sizeable loss of public funds, subsequently smearing a bad reputation of a local institution in the eyes of the public. The appropriate parties and the government as the trustees of public funds should tackle the presence of the propelling elements in driving government officials to engage in fraudulent behaviour. Besides, they should also ensure to eradicate, or at the least, prevent the problem from worsening. Therefore, this study attempted to determine the effect of fraud diamond analysis on public procurement fraud. Fraud Diamond is measured by perceived pressure, rationalisation, opportunity, and capability. The researchers gathered primary data through a survey using 165 questionnaires distributed to the government officials of all 27 ministries at the Federal level. Several statistical techniques such as descriptive statistics, correlation, and regression analysis were used to analyse the data from the survey. Four hypotheses were developed, and the findings showed that perceived pressure, perceived rationalisation, and perceived capability significantly influenced public procurement fraud by government officials, hence being accepted. In contrast, the perceived opportunity was rejected. This study aids academics, legislators, lawmakers, sociologists, psychologists, and those engaged in financial crime scene investigation, such as authorities and regulators, to understand the reason behind the fraudulent behaviour of fraudsters. [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]

The purpose of this research is to investigate whether the fraud pentagon theory predictors, namely: Pressure, Opportunity, Rationalization, Capability and Arrogance able to explain the probability of financial statement of fraud occurrence in Indonesia. The results show that: only Pressure and Rationalization elements can define the likelihood of financial statement fraud. The Capability and Arrogance proxies proposed in this research are not proven to explain the opportunities for financial statement fraud. This research finding shows that the fraud pentagon theory still needs testing in different contexts.

Research aims: This study aims to understand how reputation, financial distress and financial performance influence Shariah-compliant companies into engaging earnings management behaviour. The financial data of 69 FTSE Bursa Malaysia 100 Index companies, dating 2010 to 2014 (five years), were analysed. Design/ Methodology/ Approach: This study uses the Modified Jones model (Jones, 1991; Dechow, Sloan, & Sweeney, 1996), Roychowdhury's model (2006) to examine earnings management behaviour of Shariah-compliant companies. Research findings: The results of this study suggest that company's reputation, financial distress and financial performance are factors that can influence company's earnings management behaviour and that Shariah values are ineffective in deterring the management from earnings management behaviour. Theoretical contribution/ Originality: The findings of this study contribute to the literature by showing that Shariah values may not be beneficial in shaping good business management and reporting practices. Practitioner/ Policy implications: The alarming results drawn from this study is a reason for policy setters and relevant accounting bodies to give more emphasis on developing better accounting and reporting policies. Research limitation: This study is limited to non-financial sectors due to measurement limitations. [ABSTRACT FROM AUTHOR]

Purpose -- This paper aims to present an integrative model in predicting corporate tax fraud. Design/methodology/approach -- This paper is grounded on three theories, namely, the theory of reasoned action, theory of planned behaviour and the "Fraud Diamond Theory". Findings -- By integrating these three theories, this paper proposes that individual cognitive factors, fraud diamond factors and organizational factors such as normative and control factors influence managers to commit corporate tax fraud. Practical implications -- Practically, the proposed integrative model enables the government and tax authority to understand on why corporate managers engage in corporate tax fraud. It will also allow them to devise practical methods and strategies to prevent the corporate managers to engage in tax fraud. Originality/value -- This study has merit that proposed an integrative model in predicting corporate tax fraud. Research on corporate tax fraud has been the subject of limited investigation; hence, this study contributes to the tax compliance literature by proposing an integrative model to study corporate tax fraud in a Malaysian tax setting. Future studies can be conducted to test the proposed integrative model in examining the circumstances of managers' intention to commit corporate tax fraud. [ABSTRACT FROM AUTHOR]