A Statistical Model of Fraud Risk in Financial Statements. Case for Romania Companies

Tax avoidance is one of the most frequent reasons for which companies tend to resort creative accounting techniques. The purpose study identify eight-variables from Beneish influences or least outcome final score, as a percent, by developing statistical model. sample was selected Bucharest Stock Exchange and consists 66 traded on main market, years 2015–2019. results show that total eight variables, GMI (Gross Margin Index), AQI (Asset Quality DEPI (Depreciation Index) TATA (Total Accruals Total Assets) are significantly influencing probability commit fraud. developed model validated with only 10% non-fraud being mistakenly considered fraud based our vice versa.