This study examines the application of corporate governance and mechanisms to prevent companies from experiencing financial distress and also makes the factor of committing fraud in the company’s financial statements. This study aims to identify the corporate governance mechanism with proxies of the audit committee and the board of commissioners by examining the effect of corpo- rate financial distress on financial statement fraud. This study uses a quantitative approach with secondary data with research samples in the property and real estate sectors. The sampling method uses time-series data using the purposive sampling method. The hypothesis testing will be analyzed using partial regression analysis (PLS). This research is expected to increase the effectiveness of the corporate governance mechanism in order to successfully meet the company’s financial problems and prevent fraudulent financial statements.