ABSTRACT
Fraudulent financial statements are one type of fraud that often occurs in Indonesia. The occurrence of fraudulent financial statements will cause a company’s internal conflicts and also harm the external parties in making decisions. This study aims to detect fraudulent financial statements using fraud pentagon analysis in the form of factors of pressure, opportunity, rationalization, capability, and arrogance in mining sector companies listed on the Indonesia Stock Exchange period of 2014–2018. The sample of this study used purposive sampling, which was 31 company samples. Data analysis method in this research is logistic regression analysis using SPSS 25 software. The result showed that simultaneously the pressure, opportunity, rationalization, capability, and arrogance affect the fraudulent financial statement. Meanwhile, partially test result pressure, opportunity, rationalization, and capability have no effect and arrogance has a positive effect on fraudulent financial statement.
