The Influence of the Fraud Hexagon on Financial Statement Fraud Using the Beneish M-Score Model

https://doi.org/10.35912/gaar.v4i1.4900
Published: Nov 7, 2025

Abstract:

Purpose: This study aims to investigate and analyze the influence of hexagon fraud elements on financial statement manipulation in mining companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023. This study also uses the Beneish M-Score Model as a detection tool to assess the likelihood of fraud occurrence.

Methodology/approach: A quantitative approach was employed using a logistic regression model. A purposive sampling method was applied, resulting in 63 company-year observations over three years. The independent variables consist of six elements of the fraud hexagon: pressure (proxied by external pressure), opportunity (ineffective monitoring), rationalization (change in auditor), capability (change in directors), arrogance (managerial ownership), and collusion (political connection).

Results/findings: Ineffective monitoring and managerial ownership were found to have a significant effect on financial statement fraud. On the other hand, external pressure, change in auditors, change in directors, and political connections were not statistically significant. The Nagelkerke R Square value of 78.1% indicates a high predictive power of the model.

Conclusions: Not all elements of the Fraud Hexagon contribute to financial statement fraud in the mining sector.

Limitations: The study is limited to the mining sector with an observation period of only three years. It also does not include other potential variables that may affect fraud.

Contribution: This study provides novelty by expanding the application of the Fraud Hexagon theory in the mining industry and by demonstrating the effectiveness of the Beneish M-Score as a fraud detection model in this specific context.

Keywords:
1. Beneish M-Score
2. Financial Statement Fraud
3. Fraud Detection
4. Fraud Hexagon
5. Logistic Regression
6. Mining Sector
Authors:
1 . Kartika Rabbani
2 . Fadli Fadli
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How to Cite
Rabbani, K., & Fadli, F. (2025). The Influence of the Fraud Hexagon on Financial Statement Fraud Using the Beneish M-Score Model. Goodwood Akuntansi Dan Auditing Reviu, 4(1), 45–59. https://doi.org/10.35912/gaar.v4i1.4900
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Issue & Section
Vol. 4 No. 1 (2025): November
Articles
References

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    Dewi, CK, & Yuliati, A. (2022). The Influence of Fraud Hexagon on Financial Report Fraud (An Empirical Study of Food and Beverage Companies Listed on the IDX). Journal of Applied Accounting Research , 6 (2), 115–128. https://doi.org/10.5281/zenodo.7262498%20

    Dewi, R. C., & Suparno. (2022). Mewujudkan good governance melalui pelayanan publik. Jurnal Media Administrasi, 78–90. doi:https://doi.org/10.56444/jma.v7i1.67

    Diana Sari, NLAL, Ariyanto, D., & Paramadina, AA (2024). Detecting Financial Statement Fraud Using Fraud Hexagon Theory in Telecommunication Companies. E-Journal of Accounting , 34 (2), 310–326. https://doi.org/10.24843/eja.2024.v34.i02.p03

    Fouziah, SN, Suratno, & Djaddang, S. (2022). The Relevance of the Fraud Hexagon Theory in Detecting Fraudulent Financial Statements in Companies. Accounting, Auditing, and Vocational Finance Articles , 6 , 59–77. https://doi.org/10.35837/subs.v6i1.1525

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    Mukaromah, I., & Budiwitjaksono, GS (2021). Fraud Hexagon Theory in Detecting Financial Report Fraud in Banks Listed on the Indonesia Stock Exchange in 2015-2019. Scientific Journal of Computerized Accounting , 14 (1), 61–72. https://doi.org/10.51903/kompak.v14i1.355

    Mulyandani, VC, & Rahayu, S. (2021). The Role Of Fraud Pentagon Theory In Detecting Fraudulent Financial Statements In Banking Companies Listed On The Indonesia Stock Exchange In 2017-2019. American International Journal of Business Management (AIJBM) , 4 (09), 22–27. https://scholar.google.com/citations?view_op=view_citation&hl=en&user=5MUDhz4AAAAJ&citation_for_view=5MUDhz4AAAAJ:d1gkVwhDpl0C

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    Pratamasari, F., Muawanah, U., & Farhan, D. (2025). Factors Affecting the Quality of Financial Reports at State Universities in East Java. Journal of Accounting, Finance, and Management , 6 (3), 847–864. https://doi.org/10.35912/jakman.v6i3.4097

    Rizkia, R. (2024). Tin Mining Permit Corruption Case Costs the Environment Rp271 Trillion . Sindonews. https://nasional.sindonews.com/read/1324889/13/kasus-korupsi-izin-tambang-timah-rugikan-lingkungan-hingga-rp271-triliun-1708390932

    Sagala, SG, & Siagian, V. (2021). The Effect of the Fraud Hexagon Model on Fraudulent Financial Reports in Food and Beverage Sub-Sector Companies Listed on the IDX in 2016-2019. Journal of Accounting , 13 (2), 245–259. https://doi.org/10.28932/jam.v13i2.3956

    Sari, SP, & Nugroho, NK (2020). Financial Statement Fraud Using the Vousinas Fraud Hexagon Model Approach: A Review of Public Companies in Indonesia . 409–430. https://seminar.uad.ac.id/index.php/ihtifaz/article/view/3641

    Setyono, D., Hariyanto, E., Wahyuni, S., & Pratama, B. C. (2023). Penggunaan fraud hexagon dalam mendeteksi kecurangan laporan keuangan. Owner: Riset dan Jurnal Akuntansi, 7(2), 1036-1048. doi:https://doi.org/10.33395/owner.v7i2.1325

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    Sulistyaningsih, S., & Rafika, AS (2023). Detecting Financial Statement Fraud Using the Beneish M-Score Model in Banking Companies in the 2014-2018 Period . 4 (1), 29–40. https://doi.org/10.33050/ijacc.v4i1.2670

    Vousinas, G.L. (2019). Advancing theory of fraud: the SCORE model. Journal of Financial Crime , 26 (1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128

    Wijaya, T., & Witjaksono, A. (2023). Unmasking Financial Fraud: Revealing the Influence of Fraud Hexagon in Detecting Fraud . 10 (1), 47–56. https://doi.org/10.21512/jafa.v10i1.9927

    Wilantari, NM, & Ariyanto, D. (2023). Determinants of Fraud Hexagon Theory and Indications of Financial Statement Fraud. E-Journal of Accounting , 33 (1), 87. https://doi.org/10.24843/eja.2023.v33.i01.p07

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  2. ACFE. (2024). Association of Certified Fraud Examiners The Nations Occupational Fraud 2024 :A Report To The Nations. In Association of Certified Fraud Examiners . https://legacy.acfe.com/report-to-the-nations/2024/
  3. Achmad, T., Ghozali, I., & Pamungkas, D. (2022). Hexagon Fraud: Detecting Financial Reporting Fraud in Indonesian State-Owned Enterprises . 1–16. https://doi.org/10.3390/economies10010013
  4. Adha, W.I., Ode, W., Wahid, F., Ardita, S., Sartono, V., & Ode, L. (2024). Analysis of Factors Influencing Earnings Management in Mining Companies in Indonesia . https://doi.org/10.62504/jimr943
  5. Aji, N. F. K. (2025). Pengaruh Faktor Fraud Hexagon Terhadap Kecurangan Laporan Keuangan Pada Sektor Consumer Non–Cyclicals. doi:https://doi.org/10.37304/ej.v6i1.19959
  6. Anggelina, M., Rohmi, N., Islami, M., Rahma, SA, & Zuhdi, R. (2025). Eight Years of Bibliometric Mapping on Fraud Pentagon Theory Research in Financial Statements . 5 (1), 71–86. https://doi.org/10.35912/sakman.v5i1.4099
  7. Anggraini, MA, Rapini, T., & Riawan, R. (2023). Financial Ratio Analysis of Telecommunication Companies Listed on the Indonesia Stock Exchange (IDX) in 2016–2020. Goodwood Accounting and Auditing Review , 1 (2), 97–107. https://doi.org/10.35912/gaar.v1i2.1865
  8. Beneish, M.D., Lee, C.M.C., & Nichols, D.C. (2012). Fraud Detection and Expected Returns. SSRN Electronic Journal . https://doi.org/10.2139/ssrn.1998387
  9. Chantia, D., Guritno, Y., & Sari, R. (2021). Detection of Fraudulent Financial Statements: Fraud Hexagon SCCORE Model Approach. Business Management, Economics, and Accounting National Seminar , 2 (3), 594–613. https://conference.upnvj.ac.id/index.php/biema/article/view/1750
  10. Dewi, CK, & Yuliati, A. (2022). The Influence of Fraud Hexagon on Financial Report Fraud (An Empirical Study of Food and Beverage Companies Listed on the IDX). Journal of Applied Accounting Research , 6 (2), 115–128. https://doi.org/10.5281/zenodo.7262498%20
  11. Dewi, R. C., & Suparno. (2022). Mewujudkan good governance melalui pelayanan publik. Jurnal Media Administrasi, 78–90. doi:https://doi.org/10.56444/jma.v7i1.67
  12. Diana Sari, NLAL, Ariyanto, D., & Paramadina, AA (2024). Detecting Financial Statement Fraud Using Fraud Hexagon Theory in Telecommunication Companies. E-Journal of Accounting , 34 (2), 310–326. https://doi.org/10.24843/eja.2024.v34.i02.p03
  13. Fouziah, SN, Suratno, & Djaddang, S. (2022). The Relevance of the Fraud Hexagon Theory in Detecting Fraudulent Financial Statements in Companies. Accounting, Auditing, and Vocational Finance Articles , 6 , 59–77. https://doi.org/10.35837/subs.v6i1.1525
  14. Hadi, MSW, Kirana, DJ, & Wijayanti, A. (2021). Detecting Fraudulent Financial Reporting Using the Fraud Hexagon in Companies in Indonesia . 2 , 1036–1052. https://conference.upnvj.ac.id/index.php/biema/article/view/1672
  15. Jannah, V.M., Andreas, & Rasuli, M. (2021). The Vousinas Fraud Hexagon Model Approach in Detecting Fraudulent Financial Reporting. Indonesian Accounting and Finance Studies , 4 (1), 1–16. https://doi.org/10.21632/saki.4.1.1-16
  16. Kusumosari, L., & Solikhah, B. (2021). Analisis kecurangan laporan keuangan melalui fraud hexagon theory. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 4(3), 753-767. doi:https://doi.org/10.32670/fairvalue.v4i3.735
  17. Maharanti, P., Yudi, & Friyani, R. (2024). Determination of the Fraud Hexagon on the Tendency of Fraudulent Financial Reporting in the Provinces of Indonesia. International Journal of Multidisciplinary Approaches Research and Science , 2 (03), 1206–1221. https://doi.org/10.59653/ijmars.v2i03.946
  18. Maulina, NS, & Meini, Z. (2023). The Effect of Fraud Hexagon on Fraudulent Financial Statements. Journal of Accounting, University of Jember , 21 (2), 97. https://doi.org/10.19184/jauj.v21i2.38169
  19. Mukaromah, I., & Budiwitjaksono, GS (2021). Fraud Hexagon Theory in Detecting Financial Report Fraud in Banks Listed on the Indonesia Stock Exchange in 2015-2019. Scientific Journal of Computerized Accounting , 14 (1), 61–72. https://doi.org/10.51903/kompak.v14i1.355
  20. Mulyandani, VC, & Rahayu, S. (2021). The Role Of Fraud Pentagon Theory In Detecting Fraudulent Financial Statements In Banking Companies Listed On The Indonesia Stock Exchange In 2017-2019. American International Journal of Business Management (AIJBM) , 4 (09), 22–27. https://scholar.google.com/citations?view_op=view_citation&hl=en&user=5MUDhz4AAAAJ&citation_for_view=5MUDhz4AAAAJ:d1gkVwhDpl0C
  21. Nariswari, AV (2023). Chronology of the Nickel Mining Corruption Case, Leading to the Detention of an ESDM Official and a State Loss of Rp5.7 Trillion . Suara.Com. https://www.suara.com/news/2023/07/25/154523/kronologi-kasus-korupsi-tambang-nikel-hingga-pejabat-esdm-ditahan-dan-negara-rugi-rp57-t
  22. Pratamasari, F., Muawanah, U., & Farhan, D. (2025). Factors Affecting the Quality of Financial Reports at State Universities in East Java. Journal of Accounting, Finance, and Management , 6 (3), 847–864. https://doi.org/10.35912/jakman.v6i3.4097
  23. Rizkia, R. (2024). Tin Mining Permit Corruption Case Costs the Environment Rp271 Trillion . Sindonews. https://nasional.sindonews.com/read/1324889/13/kasus-korupsi-izin-tambang-timah-rugikan-lingkungan-hingga-rp271-triliun-1708390932
  24. Sagala, SG, & Siagian, V. (2021). The Effect of the Fraud Hexagon Model on Fraudulent Financial Reports in Food and Beverage Sub-Sector Companies Listed on the IDX in 2016-2019. Journal of Accounting , 13 (2), 245–259. https://doi.org/10.28932/jam.v13i2.3956
  25. Sari, SP, & Nugroho, NK (2020). Financial Statement Fraud Using the Vousinas Fraud Hexagon Model Approach: A Review of Public Companies in Indonesia . 409–430. https://seminar.uad.ac.id/index.php/ihtifaz/article/view/3641
  26. Setyono, D., Hariyanto, E., Wahyuni, S., & Pratama, B. C. (2023). Penggunaan fraud hexagon dalam mendeteksi kecurangan laporan keuangan. Owner: Riset dan Jurnal Akuntansi, 7(2), 1036-1048. doi:https://doi.org/10.33395/owner.v7i2.1325
  27. Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99. In M. Hirschey, K. John, & AK Makhija (Eds.), Corporate Governance and Firm Performance (Vol. 13, pp. 53–81). Emerald Group Publishing Limited. https://doi.org/10.1108/S1569-3732(2009)0000013005
  28. Soda, E. (2016). PT Timah Allegedly Creates Fictitious Financial Reports . Tambang.Co.Id. https://www.tambang.co.id/pt-timah-diduga-membuat-laporan-keuangan-fiktif
  29. Sulistyaningsih, S., & Rafika, AS (2023). Detecting Financial Statement Fraud Using the Beneish M-Score Model in Banking Companies in the 2014-2018 Period . 4 (1), 29–40. https://doi.org/10.33050/ijacc.v4i1.2670
  30. Vousinas, G.L. (2019). Advancing theory of fraud: the SCORE model. Journal of Financial Crime , 26 (1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128
  31. Wijaya, T., & Witjaksono, A. (2023). Unmasking Financial Fraud: Revealing the Influence of Fraud Hexagon in Detecting Fraud . 10 (1), 47–56. https://doi.org/10.21512/jafa.v10i1.9927
  32. Wilantari, NM, & Ariyanto, D. (2023). Determinants of Fraud Hexagon Theory and Indications of Financial Statement Fraud. E-Journal of Accounting , 33 (1), 87. https://doi.org/10.24843/eja.2023.v33.i01.p07
  33. Wolfe, D., & Hermanson, D. (2004). The Fraud Diamond: Considering the Four Elements of Fraud. The CPA Journal , 74 , 38–42. https://digitalcommons.kennesaw.edu/facpubs/1537/