Articles

The Influence of Fraud Heptagon, Audit Report Lag, and Whistleblowing System on Financial Statement Fraud with Good Corporate Governance as a Moderating Variable: Evidence from Indonesian Manufacturing Companies

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This study examines how the Fraud Heptagon, Audit Report Lag, and Whistleblowing System influence the incidence of financial statement fraud in Indonesian manufacturing firms, with Good Corporate Governance (GCG) tested as a moderating factor. Using panel data from 100 companies listed on the Indonesian Stock Exchange between 2015 and 2024, the analysis applies Partial Least Squares–Structural Equation Modeling (PLS-SEM) to evaluate both direct and interaction effects. The Fraud Heptagon—comprising pressure, opportunity, rationalization, capability, arrogance, collusion, and greed—demonstrates a significant positive association with fraudulent financial reporting, indicating its relevance as a multidimensional predictor of unethical behavior. Audit Report Lag shows a positive but insignificant relationship with fraud, suggesting that reporting delays alone do not reliably indicate manipulation. Conversely, an effective Whistleblowing System significantly reduces the likelihood of misstatements. The moderating analysis reveals that GCG strengthens the effects of the Fraud Heptagon and the Whistleblowing System but does not alter the influence of Audit Report Lag. These findings highlight the importance of behavioral, procedural, and governance mechanisms in fraud prevention. The study contributes theoretical validation of the Fraud Heptagon in an emerging-market context and provides practical guidance for improving oversight, transparency, and ethical accountability in corporate reporting.

The Role of Public Accountant Company in Pressing Audit Report Delays for Go Public Companies in Indonesia Through Panel Analysis

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This research aims to examine and analyze the role of public accountant company in pressing the condition of audit tenure, company size and financial distress toward the delay of audit report. The research sample was 19 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period of 2015 till 2022. The total observation for 8 years amounted to 152. Then, the method of the data analysis is moderated regression panel analysis in the approach of random effect model. The findings show that the audit tenure, and company size do not effect directly on audit report lag directly, but they have a tendency to shorten the audit report lag. Then, the variable of financial distress has a positive significant effect on audit report lag. Further, this results of this study reveal that the reputation of public accountant company has a role in mediating the relation between audit tenure and company size to shorten the audit report lag. Practically, these findings implicate that the reputation of public accountant company be able to pressing the reliability and timelines of financial statements, especially for the companies which are related to the audit tenure and the financial distress condition.