Public Perception of Fraudulent Financial Statements in Pharmaceutical Sub Sector
Keywords:Perception, Fraud, Pharmaceutical Sub Sector, Financial Report.
This article discusses the public perception of fraudulent financial statements in Pharmaceutical Sub Sector. Fraudulent actions against
financial statements will have a detrimental impact on the company and also the investors. This study uses a qualitative method with a
literature and literature study approach. The study results explain that financial statements provide useful information for potential investors, creditors, and other users to make rational investment decisions, granting credit, and other similar decisions. Fraud in financial statements will have an impact on decreasing investor confidence and other users of financial statements. Fraud is a process or manipulation that can harm the company. Financial statement fraud can be detected through vertical, horizontal, and ratio analysis. Fraud can be influenced by 3 factors called the Fraud Triangle: pressure, opportunity, and rationalization so that fraud can be accepted. To prevent fraud in the financial statements, preventive action is needed including the company's internal control and also supervision from investors and creditors through an external audit process.