The Role of Religiosity and Red Flag on Financial Statement Fraud
摘要
Uncovering the facts of factors that influence financial statement fraud is the purpose of this study. The role of religiosity and detection of red flags from external auditors is a concern to uncover financial statement fraud. This study used a quantitative approach. Purposive sampling method was used and produced 85 research samples. Research shows evidence that red flags and religiosity affect the tendency of financial statement fraud. This research makes an important contribution that companies must provide a good atmosphere for the implementation of employee worship. Providing sufficient time opportunities and good places of worship is the solution to increase religiosity. Indications of red flags in employee’s behavior can be used as early detection to prevent fraud.