Detection of financial statements fraud using Beneish and Dechow models

Fraudulent financial reporting is a big issue not only for investors but also other stakeholders. This research uses two popular fraud detection models by Beneish (1997, 1999a) and Dechow et al. (2011). The main goal of this paper to compare the precision these prediction in statements Iranian companies. Firstly, we try identify statistical description related first fourth quartiles models. Then, determine models’ forecasting capabilities using SPSS software t-test variance analysis. We use sample 197 companies during 11-years period from 2009 till 2019. results indicate that model has more less error level than model. general model, with 83%, compared 75%, demonstrates volume company’s statements. According results, more, its estimation latter. Therefore, according hypothesis, enjoys higher power probability committing Thus, previous record earnings management, there It possible detect easily findings (1999b) research, Jones (2008), (2011), Perols Lougee (2011) confirm result obtained hypothesis.