Kusumaningdiah Retno Setiorini, Rahmawati, Payamta, Sri Hartoko, Alhaq Kamal, Tyagita Dianingtyas Sudibyo and Rosa Nikmatul Fajri
The purpose of the study was to examine the influence of elements that use the Pentagon's fraud theory to detect financial statement fraud among Garuda Indonesia Group companies in Indonesia. Secondary data used to calculate ratios and numbers representing study variables were collected using data of companies listed on the Indonesia Stock Exchange from 2010 to 2018. The convenience sampling technique creates a sample size of 36 (thirty-six) from the targeted population of the five Garuda Indonesia Group companies listed on the Indonesia Stock Exchange. The data analysis method used in this study is the kernel regression parameters, namely R square, signal prediction, and standard errors, to detect profit management at Garuda Indonesia Group. The results of this study support by generating a value of R square of 81%. The five (five) variables of the Pentagon's fraud theory: pressure, opportunity and rationalization, competence, arrogance affect financial statement fraud financial statements in the Garuda Indonesia group. Practically, this study provides a hotbed for regulatory authorities in Indonesia, State-Owned Enterprises (SOEs), to understand the extent to which variable fraud theory can be control in detecting financial statement fraud. In addition, as a suggestion, garuda group management to pay more attention when detecting financial statement fraud using the Pentagon fraud theory. The principal value of the study was the determination of variables of the Pentagon's fraud theory, which affects financial statement fraud in the Garuda group registered in Indonesia.