Financial Shenanigans Model: Detecting Hidden Financial Reporting Strategies within the Framework of Forensic Accounting and Fraud Detection
DOI:
https://doi.org/10.24269/ekuilibrium.v21i2.2026.pp309-329Keywords:
Financial Shenanigans, Financial Statement Analysis, Detection Methods, Forensic AccountingAbstract
This study aims to identify and analyze the indications and forms of financial shenanigans in the financial reporting of PT Timah Tbk. and to examine their implications for stakeholder decision-making. A quantitative approach with a descriptive research design was employed using secondary data derived from the company’s financial statements. Financial statement analysis was conducted to identify patterns, anomalies, and inconsistencies that may indicate potential financial reporting manipulation. The findings reveal indications of financial shenanigans reflected in revenue recognition practices, cash flow management, and fluctuations in key financial performance indicators. These indications suggest the potential occurrence of premature revenue recognition, delayed expense recognition, and the reclassification or timing adjustment of cash flows to portray more favorable liquidity and financial performance conditions. Although such practices may initially convey positive signals to investors and other stakeholders, discrepancies between reported and underlying economic performance may ultimately undermine stakeholder confidence, contribute to stock price volatility, increase reputational risks, and expose the company to greater operational and regulatory risks. The practical implications highlight the importance of strengthening corporate governance mechanisms, enhancing financial reporting transparency, and ensuring regulatory compliance to mitigate the risk of financial reporting irregularities. This study contributes a systematic and applicable detection framework that integrates financial statement analysis with forensic accounting perspectives to examine financial shenanigans more comprehensively. Unlike prior studies that predominantly focus on specific manipulation cases, this research provides a structured analytical approach that can be applied to emerging market contexts, particularly state-owned enterprises, and offers practical insights for auditors, regulators, and investors in identifying early warning signals of potential financial misstatements.
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