THE EFFECT OF FRAUD HEPTAGON ON FRAUDULENT FINANCIAL REPORTING WITH THE BENEISH M SCORE MODEL WITH GOOD CORPORATE GOVERNANCE AS A MODERATING VARIABLE (Case Study of Consumer Good Industry Companies Listed on the Indonesia Stock Exchange in 2019-2023)

Abstract

This research seeks to explore how factors such as pressure, opportunity, rationalization, competence, arrogance, culture, with religiosity impact fraudulent financial reporting. Additionally, it aims to examine how these factors relate to fraudulent financial reporting when considering GCG as a moderating factor. The research focuses on firm in the consumer goods industry, specifically within the processed food sub-industry, consisting of 19 firm. A purposive sampling method was employed for this research, with data gathered through documentation techniques. For data analysis, multiple linear regression analysis with Variable Analysis were utilized along with MRA using SPSS. The conclusion of thisresearch indicate: 1). There is a negative impact of pressure, opportunity, with culture on fraudulent financial reporting; 2). Rationalization with religiosity do not significantly influence fraudulent financial reporting; 3). Competence with arrogance positively affect fraudulent financial reporting; 4). Good corporate governance does not strengthen the influence of pressure, opportunity, rationalization, with competence on fraudulent financial reporting; 5). Good corporate governance does, however, enhance the influence of arrogance, culture, with religiosity on fraudulent financial reporting