External pressure, ineffective monitoring and change in auditor on financial fraud in mining subsector companies

This study aims to rigorously examine and analyze the partial and simultaneous effects of external pressure, ineffective monitoring, and auditor changes on financial statement fraud. Employing a quantitative research approach, the study focuses on mining sub-sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. The sample was selected using purposive sampling, resulting in 30 companies that met the predefined research criteria. Data were analyzed using multiple linear regression to determine the influence of each independent variable on the dependent variable. The empirical findings reveal that, individually, external pressure, ineffective monitoring, and changes in auditor do not exert a statistically significant effect on financial statement fraud. Furthermore, the results of the simultaneous test demonstrate that these three variables, when considered collectively, also do not have a significant impact on the occurrence of financial fraud. These results suggest that the examined factors are not principal determinants in driving fraudulent financial reporting within the mining sub-sector during the specified period. Keywords: Change in auditor, external pressure, financial fraud, ineffective monitoring