Literature Study: Accuracy of Fraud Triangle Theory Analysis in Identifying Financial Statement Fraud

The focus of this study is to identify what components are used in identifying fraud in financial statements using the perspective of fraud triangle theory and to find out whether the fraud triangle theory is accurate in detecting fraud in financial statements. This is important to do because there are still many cases of financial statement fraud and will have an impact on decision-making by stakeholders. This scientific work uses a qualitative approach. Data analysis uses literature study techniques. The results of the study show that factors that can detect financial statement fraud include Financial Stability, Financial Targets, Personal Financial Needs, External Pressure, Nature of Industry, Ineffective Monitoring, Auditor Change and Audit Committee. These factors have been proven to have an effect on the occurrence of financial statement fraud so that the Fraud Triangle theory is accurate in detecting financial statement fraud.