Detecting Fraud in Accounting and Marketing

No Please, After You: Detecting Fraud in Affiliate Marketing Networks

Cookie stuffing is an activity which allows unscrupulous actors online to defraud affiliate marketing programs by causing themselves to receive credit for purchases made by web users, even if the affiliate marketer did not actively perform any marketing for the affiliate program. Using two months of HTTP request logs from a large public university, we present an empirical study of fraud in affi...

Accounting Fraud and the Pricing of Corporate

We provide a method for modelling accounting distortions and their impact on the value of corporate liabilities. Our model is able to account for both small noise (estimate errors) and large mis-representations (deliberate fraud). Such a methodology is then applied to structural pricing models, in the spirit of Merton (1974). It turns out that accounting distortions may be a relevant factor in ...

Big Five Audits and Accounting Fraud

Empirical studies of earnings management, audit pricing, and audit reporting provide extensive evidence that the Big Five public accounting firms are associated with higher quality financial statements (Francis 2004). Nevertheless, the recent high-profile financial reporting failures that roiled the U.S. capital markets cast doubt on whether this proposition remains valid. Indeed, many commenta...

The Accounting and Marketing Interface in Hotels

A hybrid model based on machine learning and genetic algorithm for detecting fraud in financial statements

Financial statement fraud has increasingly become a serious problem for business, government, and investors. In fact, this threatens the reliability of capital markets, corporate heads, and even the audit profession. Auditors in particular face their apparent inability to detect large-scale fraud, and there are various ways to identify this problem. In order to identify this problem, the majori...