The Influence of Fraud Star on Financial Report Fraud with Audit Quality as a Moderating Variable (Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange for the Period 2021 – 2024)

Chesylia Ayu Risma (Institute Keuangan Perbankan dan Informatika Asia Perbanas)
Trinandari Prasetya Nugrahanti (Institute Keuangan Perbankan dan Informatika Asia Perbanas)

Escalate : Economics and Business Journal
Vol. 4 No. 01 (2026): Escalate: Economics and Business Journal

Financial statement fraud can undermine the credibility of accounting information and harm stakeholders. This study aims to analyze the association between Fraud Star elements and financial statement fraud, with audit quality as a moderating variable. A quantitative approach was employed using secondary data from financial statements and annual reports of basic materials manufacturing companies listed on the Indonesia Stock Exchange during 2021–2024. Purposive sampling resulted in 41 companies with 164 observations. Data were analyzed using multiple linear regression and Moderated Regression Analysis (MRA) with IBM SPSS Statistics 29. The results indicate that financial targets have a significant positive association with financial statement fraud, whereas nature of industry and rationalization have significant negative associations. Capability and lack of integrity show no significant associations. Regarding moderation, audit quality strengthens the relationship between financial targets and financial statement fraud, while weakening the relationships involving nature of industry and rationalization. However, audit quality does not moderate the relationships involving capability and lack of integrity. These findings provide insights into the relationships between Fraud Star elements, audit quality, and financial statement fraud.