Analysis of Financial Statement Manipulation Detection Using Beneish M-Score Model in Trade and Investment Sector Companies Listed on ISSI in 2024

Nurlia; Usdeldi; Khairiyani

doi:10.63922/ijebir.v5i04.3989

Nurlia Sharia Accounting Study Program, Faculty of Economics and Sharia Business, UIN Sultan Thaha Saifuddin Jambi
Usdeldi Sharia Accounting Study Program, Faculty of Economics and Sharia Business, UIN Sultan Thaha Saifuddin Jambi
Khairiyani Sharia Accounting Study Program, Faculty of Economics and Sharia Business, UIN Sultan Thaha Saifuddin Jambi

DOI: https://doi.org/10.63922/ijebir.v5i04.3989

Keywords: Keywords: financial reports, manipulation, Beneish M-Score, Trading and Investment companies, Indonesian Sharia Stock Index (ISSI).

Abstract

Financial reports are a means of providing important information for both internal and external parties of a company. However, various cases of financial report manipulation are still found, both intentionally and unintentionally. This study aims to identify manipulation in the financial reports of companies in the Trading and Investment sector listed on the Indonesian Sharia Stock Index (ISSI), which then grouped the results of the company ratio calculations into the categories of manipulators, gray companies, and non-manipulators. This study uses a descriptive quantitative approach by utilizing secondary data sourced from the financial reports of companies in the Trading and Investment sector listed on the Indonesian Sharia Stock Index (ISSI). Data analysis was carried out through 8 financial ratios in the Beneish Ratio index method, namely the Days' Sales in Receivables Index (DSRI), Gross Margin Index (GMI), Asset Quality Index (AQI), Sales Growth Index (SGI), Depreciation Index (DEPI), Sales, General, and Administrative Expenses Index (SGAI), Leverage Index (LVGI), and Total Accruals to Total Assets (TATA). The results of the study indicate that in 2024, seven companies, or 20% of companies, were classified as manipulators, 27 companies, or 77.14% of companies, were classified as non-manipulators, and one company, or 2.86% of companies, was classified as a grey company. These results indicate that the majority of companies in the Trade and Investment sector registered with the ISSI in 2024 were not indicated to have manipulated their financial statements. However, several companies were still indicated to have manipulated, as well as companies that were classified as grey companies. Therefore, further monitoring and analysis of the quality of the presentation of companies' financial statements is necessary.

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