The Effect of Ineffective Monitoring and Auditor Replacement on Financial Statement Fraud (Empirical Study on the Real Estate and Property Sector)

Abstract

examines the effect of ineffective monitoring and auditor change on financial report fraud in real estate and property companies listed on the Indonesia Stock Exchange during 2023–2024. Research Methods: A quantitative approach was applied to 55 companies selected through purposive sampling, generating 110 observations. Secondary data were obtained from annual reports and financial statements. Financial report fraud was measured using the Beneish M-Score, while data were analysed using multiple linear regression. Finding/Results: Ineffective monitoring and auditor change do not significantly affect financial report fraud. The findings indicate that the proportion of independent commissioners and auditor changes are insufficient as primary indicators of financial statement manipulation. Conclusion: Financial report fraud may be better explained by other factors, including internal control quality, audit quality, and financial characteristics.