EFEKTIVITAS METODE RED FLAGS DALAM MENDETEKSI KECURANGAN PELAPORAN KEUANGAN ( Studi Komparasi Terhadap Persepsi Internal dan Eksternal Auditor di Wilayah Pekanbaru )

Abstract

This study examines how the different internal and external perceptions of
auditors in the Pekanbaru Region on the effectiveness of the red flags method in
detecting fraudulent financial reporting in companies. Respondents in this study
were auditors who worked in Riau Provincial BUMD, BUMN, and Public
Accounting Firm in Pekanbaru. The number of auditors who were sampled in this
study were 56 auditors. The method of determining the sample used was
purposive sampling, data collection techniques with questionnaires, and the
research method used was the Independent Sample T-test on the IBM SPSS
version 22 program. The results of this study indicate a different perception in
some indicators of red flags which are divided into 5 dimensions of red flags in
fraud pentagon theory, namely: pressure, opportunity, rationalization,
competence, and arrogance. Where the overall external auditor considers red
flags to be more effective in detecting fraudulent financial reporting in the
company and from the 5 dimensions of red flags, opportunity dimensions are
considered the most effective.
Keywords : Red Flags, Fraud Pentagon Theory, Internal Auditors, External
Auditors.