AUTHORS: Soni Agus Irwandi, Imam Ghozali, Faisal, Imang Dapit Pamungkas

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ABSTRACT: This study aims to analysis financial stability, nature of industry, audit opinion on fraudulent financial statement. Furthermore, to analysis financial stability, the nature of industry, audit opinion on real earnings management, to analysis the real earning management on fraudulent financial statement. Next, to analysis financial stability, nature of industry, audit opinion on fraudulent financial statement with real earning management as a mediating variable. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange during the period 2013-2017. The sampling technique was carried out by purposive sampling to produce 130 samples. In this study the technical analysis model uses path analysis and SPSS version 22. The results of this research are financial stability and nature of industry has a significant effect on fraudulent financial statement. Audit opinion has not effect on fraudulent financial statement. Financial stability and Nature of industry has a significant effect on real earnings management. Audit opinion has not effect on Real Earnings Management. real earning management significantly influences fraudulent financial statement. Real earnings management can mediate on the relationship of financial stability, nature of industry on fraudulent financial statement. But, audit opinion cannot mediate on the relationship on fraudulent financial statement.

KEYWORDS: Fraudulent Financial Statement, Real Earning Management

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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #30, pp. 271-281


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