The Impact of Faithful Representation on Fixed Asset Reporting and Measurement, and the Reliability of Fair Value in Detecting Fraud: The Moderating Role of Internal Control

This study investigates the influence of faithful representation and fair value measurement on the detection of fraud in fixed asset management, with internal control as a moderating variable. Focusing on manufacturing companies listed on the Indonesia Stock Exchange between 2021 and 2023, the research employs a quantitative approach using panel data regression models. Results indicate that neither faithful representation nor fair value measurement significantly affect fraud detection when considered individually. However, internal control shows a significant moderating effect, enhancing fraud detection capabilities. Despite this, interaction tests reveal that internal control does not effectively moderate the relationship between the two independent variables and fraud detection. The findings underscore the importance of integrated financial transparency and robust internal control systems in mitigating asset-related fraud. This research contributes to accounting literature, offers practical insights for corporate governance, and highlights policy implications for regulatory bodies.

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Publication Details

Published
2025-09-16
DOI
https://doi.org/10.38124/ijisrt/25aug1313
Primary Topic
Auditing, Earnings Management, Governance
Type
article
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article

The Impact of Faithful Representation on Fixed Asset Reporting and Measurement, and the Reliability of Fair Value in Detecting Fraud: The Moderating Role of Internal Control

Ratna Mappanyukki, Heavenly Shine
Auditing, Earnings Management, Governance
article

The Impact of Faithful Representation on Fixed Asset Reporting and Measurement, and the Reliability of Fair Value in Detecting Fraud: The Moderating Role of Internal Control

Ratna Mappanyukki, Heavenly Shine
article en

Abstract

This study investigates the influence of faithful representation and fair value measurement on the detection of fraud in fixed asset management, with internal control as a moderating variable. Focusing on manufacturing companies listed on the Indonesia Stock Exchange between 2021 and 2023, the research employs a quantitative approach using panel data regression models. Results indicate that neither faithful representation nor fair value measurement significantly affect fraud detection when considered individually. However, internal control shows a significant moderating effect, enhancing fraud detection capabilities. Despite this, interaction tests reveal that internal control does not effectively moderate the relationship between the two independent variables and fraud detection. The findings underscore the importance of integrated financial transparency and robust internal control systems in mitigating asset-related fraud. This research contributes to accounting literature, offers practical insights for corporate governance, and highlights policy implications for regulatory bodies.

Openalex Percentile: Top 63%
Auditing, Earnings Management, Governance
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The Impact of Faithful Representation on Fixed Asset Reporting and Measurement, and the Reliability of Fair Value in Detecting Fraud: The Moderating Role of Internal Control — Ratna Mappanyukki, Heavenly Shine · (2025) | TGRS Research Map | TGRS