Earnings management and fraudulent financial reporting: Distinctive criteria of suspicious accounting practices

Provide an optimal audit model to reduce fraudulent financial reporting

Fraud in financial reporting and accounting has grown significantly in recent years due to the financial crises created in companies, so that fraud has become a political and economic issue and today the legislature, the accounting profession and the causes The creation of fraud in it as well as the ways to deal with fraudulent behavior in financial statements have received special attention. T...

The Prevention and Investigation of Fraudulent Accounting Practices

Feature Extraction of Fraudulent Financial Reporting through Unsupervised Neural Networks

The objective of this study is to apply an unsupervised neural network tool to analyze fraudulent financial reporting (FFR) by extracting distinguishing features from samples of groups of companies and converting them into useful information for FFR detection. This methodology can be used as a decision support tool to help build an FFR identification model or other financial fraud or financial ...

The Role of Imputation in Detecting Fraudulent Financial Reporting

Financial fraud detection plays a crucial role in the stability of institutions and the economy at large. Data mining methods have been used to detect/flag cases of fraud due to a large amount of data and possible concept drift. In the financial statement fraud detection domain, instances containing missing values are usually discarded from experiments and this may lead to a loss of crucial inf...

Accounting based regulation and earnings management

We document the distortionary effects of accounting-based regulation on reported earnings. In India only firms with negative book value of equity (networth) can seek bankruptcy protection. Using a novel dataset of bankrupt firms from India, we show that firms manage earnings downward to seek bankruptcy protection. Strengthening creditor rights reduces downward earnings management among non-grou...