Detection Financial Statement Fraud With Beneish Model : An Empirical In Indonesia

Abstract

This research aims to know the number of manufacturing companies that classified
as manipulators, gray company, and non-manipulators which measure used
Beneish analysis model. Used samples consisted of 64 annual financial reports of
manufacturing companies that listed in Indonesia Stock Exchange from 2015 to
2016. The results of data analysis show there are 5 firms with percentage 7,81%
classified as manipulators. Most dominant indicators are SGAI, DEPI, and AQI.
Number of gray company category are 2 or 3,81% .Most commonly shown by
GMI indicator. While the companies that classified as non-manipulators are 57
companies or 89,06%. The results of this research indicate that (1) still founds a
companies that have potential to do financial statement fraud, even the number
increased, as much as 5 companies or equal to 7,81% from samples companies. (2)
as many as 2 companies or 3,13% of total samples companies classified as gray
company. (3) there are 57 companies or 89,1% classified as non-manipulators.
Investors and creditors are expected to be more cautious in deciding the company's
capital and credit policies in the future. While for companies that have presented
financial statements that are free from the element of manipulation should be
rewarded. In the long run, companies can enjoy good market performance and in
turn gain public trust.
Keywords : financial statement fraud; manipulator; gray company; non-manipulators; Beneish
analysis.