Sebelas Maret International Conferences, The 2nd INCREDIBLE

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Board Diversity and Financial Statement Fraud with Board of Commissioner Effectiveness and Audit Committee Effectiveness as Moderating Variable
Tiara Pradani

Building: Parallel Session 1
Room: A
Date: 2020-10-27 01:15 PM – 02:30 PM
Last modified: 2020-10-19


This study aims to prove whether diversity of directors can reduce the probability of financial statement fraud occurring. This study also wants to prove the relationship between the diversity of directors and the lack of probability of occurrence of financial statement fraud with the effectiveness of board supervision and the effectiveness of the audit committee as moderating variable. This study used purposive sampling with the criteria that the company publishes annual reports from 2016 to 2018 period. The results showed that the diversity of the level of education of the board of directors reduces the probability of financial statement fraud. The results also show that the supervision of the board of commissioners and the audit committee is able to moderate the relationship between board diversity and financial statement fraud. The study was limited to the research period, only three years of research from 2016 to 2018.

Keywords: Board Diversity, Financial Statement Fraud, Board of Commissioner, Audit Committee