Resumen de Good Corporate Governance, Corporate Social Responsibility and Fraud Detection of Financial Statements

Wuryan Andayani, Maharani Wuryantoro

• Purpose: The aim of this research is to serve an overview of how corporate social responsibility (CSR), good corporate governance (GCG), and financial statement fraud detection work together to reduce fraudulent financial statements.

    Theoretical framework: Cressey (1953) showed that there are three main reasons for fraud as it is known today, they are pressures faced by perpetrators, opportunities owned by perpetrators, rationalization behind the perpetrators.

    Design/methodology/approach: Qualitative content analysis is the research method used in publication of scientific articles.

    Findings: The attained findings reached a conclusion that financial statement fraud can be decreased by good governance, social responsibility and financial statement fraud detection.  Additionally, efforts at prevention and detection must be supported by ethical values and a corporate culture that minimizes the use of false financial statements. Overall, generalizations may be made about the functions of governance, social responsibility, and fraud detection in financial statements.

    Research, Practical & Social implications: Some regions are able to implement a good governance system so that it is effective in handling fraud that occurs, and some have not shown this. Research shows that the elements of governance that are tested through quantitative research still give varying results. The system for the category of good corporate governance does not always give positive results.

    Originality/value: This article is a contribution to the academic literature that helps us comprehend studies on the importance of corporate social responsibility and how to identify financial statement fraud in order to decrease and steer clear of it.