| Summary: | This study aims to detect potential fraudulent financial statements using the Fraud Pentagon Analysis. Detection of potential fraudulent financial statements is measured using the Beneish M-Score. The study was conducted on the mining companies listed on the Indonesia Stock Exchange during 2015-2019. The research sample was obtained based on purposive sampling, and there were 190 companies whose data met the criteria of research samples. The data analysis used the logistic regression analysis. The results show that rationalization and capability have a positive effect on the potential for fraudulent financial statements, while pressure, opportunity, and arrogance have no effects on the potential for fraudulent financial statements. This research is expected to provide benefits for interested parties. It is also expected to provide benefits for other researchers and be used as a reference for developing further research. Company managements need to pay attention to the potential for fraud in the financial statements that can have an impact on the interest of investors to invest their funds. For investors, this study is expected to be used as a reference to make them more careful in selecting investments and as a basis for making decisions. Copyright © 2024 GMP Press and Printing.
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