DETECTING FRAUD WITH BUSINESS ETHICS DISCLOSURE, AUDIT COMMITTEE INDEPENDENCE, AND EARNINGS PER SHARE

Abstract

This study was conducted to observe the pattern of fraud committed by public companies. The number of fraud cases shows the low level of information quality in financial reporting and the low level of internal control of the company, which also shows the low level of compliance with accounting standards. The study aims to detect fraud through the disclosure of business ethics, independence of the audit committee, and earnings per share. This research uses a positivist approach, a causality study using quantitative methods, and secondary data. Secondary data is obtained from the annual and sustainability reports of public companies listed on the Indonesia Stock Exchange in 2018-2021. The sampling technique uses purposive sampling with criteria of companies that have experienced FraudFraud and obtained 48 samples. The data analysis method uses logistic regression. The results showed that disclosure of business ethics and unconfirmed earnings per share significantly influenced FraudFraud. In contrast, the independence of confirmed auditors had a negative and significant influence on FraudFraud. This research has a theoretical contribution to the development of accounting science to help detect fraud motives so that it will increase accuracy, transparency, and ethics in accounting practices, as well as have a practical contribution to company management in preventing fraud. It explains the importance of the research, objectives, brief methods, findings, and conclusions.