Research Article
The Analysis of Fraud Detection Using the Beneish Ratio Index and the F Score Model Method on the Financial Statements of the State-Owned Insurance Companies Registered in Indonesia
@INPROCEEDINGS{10.4108/eai.2-12-2021.2320344, author={Diza Armalia Wisdianti and Enggar Diah Puspa Arum and Rico Wijaya}, title={The Analysis of Fraud Detection Using the Beneish Ratio Index and the F Score Model Method on the Financial Statements of the State-Owned Insurance Companies Registered in Indonesia}, proceedings={Proceedings of the 2nd Universitas Kuningan International Conference on System, Engineering, and Technology, UNISET 2021, 2 December 2021, Kuningan, West Java, Indonesia}, publisher={EAI}, proceedings_a={UNISET}, year={2022}, month={8}, keywords={beneish m score; dechow f score; fraud; annual report}, doi={10.4108/eai.2-12-2021.2320344} }- Diza Armalia Wisdianti
Enggar Diah Puspa Arum
Rico Wijaya
Year: 2022
The Analysis of Fraud Detection Using the Beneish Ratio Index and the F Score Model Method on the Financial Statements of the State-Owned Insurance Companies Registered in Indonesia
UNISET
EAI
DOI: 10.4108/eai.2-12-2021.2320344
Abstract
This study aims to see a company that is trying to manipulate the presentation of the accounting report seen from the financial ratios of the Beneish M Score and Dechow F Score models. The Beneish M- Score Model is a model that uses eight ratios related to asset changes and sales growth consisting of DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, and TATA. If the score obtained is above -2.22, the company is said to tend to manipulate or manipulate. Meanwhile, the F Score Model is a financial report fraud detection model developed using a scaled logistic probability technique where financial reports with an F score of more than one should be suspected of containing fraud. The results of using both methods show that companies suspected of manipulating financial statements are the same companies, which are PT Asuransi Jiwasraya (Persero) and PT Asabri (Persero). The calculation method for the two different methods also shows that the company is the same, and the research results show that the company presents a good report, which is PT Taspen (Persero). PT Asuransi Jiwasraya (Persero) produces the M Score of 0.808, while the F Score model produces a score of 1.852. PT. Asabri (Persero) produces an M Score of - 1,388, while the F Score model produces a score of 1,563. The two companies have been calculated using both calculation methods and produce a score that exceeds the predetermined amount of cut-off.