Forecasting Fraudulent Financial Statements with Committee of Cost-Sensitive Decision Tree Classifiers

2012 ◽  
pp. 57-64
Author(s):  
Elias Zouboulidis ◽  
Sotiris Kotsiantis
Keyword(s):  
Decision Tree ◽  
Financial Statements ◽  
Fraudulent Financial Statements

Corporate Governance and Fraudulent Financial Statements in Indonesia’s Local Government

2017 ◽  
Vol 1 (1) ◽  
pp. 63-73
Author(s):  
Halim Dedy Perdana ◽  
Sri Suranta ◽  
Santoso Tri Hananto ◽  
Christiyaningsih Budiwati
Keyword(s):  
Corporate Governance ◽  
Local Government ◽  
Financial Statements ◽  
Fraudulent Financial Statements

scholarly journals Detecting and Analyzing Fraudulent Patterns of Financial Statement for Open Innovation Using Discretization and Association Rule Mining

2021 ◽  
Vol 7 (2) ◽  
pp. 128
Author(s):  
Siriporn Sawangarreerak ◽  
Putthiporn Thanathamathee
Keyword(s):  
Association Rule ◽  
Open Innovation ◽  
Association Rule Mining ◽  
Financial Statements ◽  
Frequent Pattern ◽  
Financial Ratios ◽  
Rule Mining ◽  
Business Income ◽  
Fraudulent Financial Statements

Identifying fraudulent financial statements is important in open innovation to help users analyze financial statements and make investment decisions. It also helps users be aware of the occurrence of fraud in financial statements by considering the associated pattern. This study aimed to find associated fraud patterns in financial ratios from financial statements on the Stock Exchange of Thailand using discretization of the financial ratios and frequent pattern growth (FP-Growth) association rule mining to find associated patterns. We found nine associated patterns in financial ratios related to fraudulent financial statements. This study is different from others that have analyzed the occurrence of fraud by using mathematics for each financial item. Moreover, this study discovered six financial items related to fraud: (1) gross profit, (2) primary business income, (3) ratio of primary business income to total assets, (4) ratio of capitals and reserves to total debt, (5) ratio of long-term debt to total capital and reserves, and (6) ratio of accounts receivable to primary business income. The three other financial items that were different from other studies to be focused on were (1) ratio of gross profit to primary business profit, (2) ratio of long-term debt to total assets, and (3) total assets.

scholarly journals Kecurangan Dalam Laporan Keuangan “Menguji Teori Froud Triangle”

2018 ◽  
Vol 19 (1) ◽  
pp. 77
Author(s):  
Langgeng Prayitno Utomo
Keyword(s):  
Logistic Regression ◽  
Fraud Detection ◽  
Financial Statements ◽  
External Pressure ◽  
Fraud Triangle ◽  
Triangle Theory ◽  
Fraudulent Financial Statements

This study aims to examine the factors that affect the fraudulent financial statements of the company. Fraud detection of financial statements using fraud triangle theory. Based on the theory of fraud triangle there are three factors: pressure, opportunity, and rationalization are used as parameters to detect fraud. The sample of this study used 44 companies in 3 years of observation, where the company is divided into companies that are indications of fraud and not by doing the analysis using the calculation of the underlying M-score, this study used logistic regression, the result that the indication of fraud in this study only can be obtained from external pressure factors on pressure variables and the effectiveness of monitoring on the opportunity variables, this study fails to establish influence in three factors at once ie pressure, opportunity, and rational

scholarly journals PENGARUH FRAUD PENTAGON TERHADAP FRAUDULENT FINANCIAL STATEMENTS PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2015-2017

2019 ◽  
Vol 6 (1) ◽  
pp. 141
Author(s):  
Mega Indah Lestari ◽  
Deliza Henny
Keyword(s):  
Financial Stability ◽  
Sampling Method ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Financial Statements ◽  
Analysis Method ◽  
Financial Report ◽  
Fraudulent Financial Statements

<p><em>The Objective of this research is to analyze the factors of financial report fraud with pentagon fraud analysis. This research uses six independent variables which is pressure used financial target and financial stability as proxy, opportunity with proxy  ineffective monitoring, rationalization with change in auditor as proxy, capability with proxy of CEO’s education, and arrogance with proxy frequent number of CEO’s picture, while the dependent variable is fraudulent financial statements proxied by restatement of financial statements. </em><em>This research uses secondary data that is financial report and annual report. The sample of this study is 110 samples from financial statements of financial companies listed in the Indonesia Stock Exchange (BEI) during the 2015-2017 period. Sampling technique used is purposive sampling method. The method of analysis in this study uses logistic regression analysis method.</em><em>The results of this research shows that the financial stability variable and ineffective monitoring are significant in detecting fraudulent financial statements. While financial targets variable, auditor’s change variable, CEO’s education variable, and frequent number of CEO’s picture are not significant in detecting fraudulent financial statements.</em></p>

scholarly journals ANALISIS FRAUD PENTAGON TERHADAP KECURANGAN LAPORAN KEUANGAN PADA SEKTOR PERUSAHAN MANUFAKTUR YANG TERDAFTAR Di BURSA EFEK INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 153
Author(s):  
Delviana Dama Yanti
Keyword(s):  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Public Accounting ◽  
Accounting Firms ◽  
External Auditors ◽  
Public Accounting Firms ◽  
Fraudulent Financial Statements

ABSTRACT The purpose of this research is see the effect of pentagon fraud proxied by financial targets, nature of the industry, quality of external auditors, change of auditors, number of CEOs who frequently detect fraud in financial statements. Financial statement fraud in this study was measured using the proxies of Return on Assets, Receivables, selection of audit services at public accounting firms, changes in public accounting firms, changes in directors, and the number of CEO photos. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2017-2019. This study uses a purposive sampling technique so, there are 48 financial reports from 25 manufacturing companies. The analytical method used is multiple linear regression analysis with SPSS version 20. The results of this study indicate that financial targets, nature of industry, quality of external auditors and the number of CEOs who often do not have a significant effect in the handling of fraudulent financial statements. Meanwhile, changes in auditors and changes in direction have a significant effect on fraudulent financial statements

scholarly journals DETECTION OF FRAUDULENT FINANCIAL STATEMENT THROUGH PENTAGON THEORY WITH AUDIT COMMITTEE AS MODERATING

2021 ◽  
Vol 4 (1) ◽  
pp. 35
Author(s):  
Ely Indriyani ◽  
Dhini Suryandari
Keyword(s):  
Regression Analysis ◽  
Financial Stability ◽  
Audit Committee ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Analysis Data ◽  
External Pressure ◽  
Analysis Technique ◽  
Fraudulent Financial Statements

This study aims to examine financial targets, financial stability, external pressure, personal financial needs, effective monitoring, nature of industry, total accruals, change of directors, and CEO duality in detecting fraudulent financial statements with the audit committee as the moderating variable. The population of this research is 20 state-owned companies listed on the Indonesia Stock Exchange (BEI) in 2014-2018. Sampling using saturated sampling technique and obtained a final sample of 100 units of analysis. Data collection using documentation techniques. The data analysis technique used regression analysis and Moderated Regression Analysis (MRA). The results of this study indicate that external pressure and the nature of industry have a significant positive effect on the detection of fraudulent financial statements. The audit committee is able to moderate the influence of financial targets, external pressure, nature of industry, and change of directors on the detection of fraudulent financial statements

Researches of Detection of Fraudulent Financial Statements Based on Data Mining

2017 ◽  
Vol 14 (1) ◽  
pp. 32-36
Author(s):  
Dan Han
Keyword(s):  
Data Mining ◽  
Academic Research ◽  
Financial Statements ◽  
Bayesian Belief Networks ◽  
Financial Accounting ◽  
Accounting Fraud ◽  
Financial Statement Fraud ◽  
Business World ◽  
Modern Business ◽  
Fraudulent Financial Statements

Financial statement fraud has been one of the biggest challenges in the modern business world. Financial accounting fraud detection (FAFD) has become an emerging topic of great importance for academic, research and industries. In this paper, the effectiveness of Data Mining (DM) classification techniques in detecting firms that issue fraudulent financial statements (FFS) and deals with the identification of factors associated to FFS are explored. Our study investigates the usefulness of Data Mining techniques including Decision Trees, Neural Networks and Bayesian Belief Networks in the identification of fraudulent financial statements. At last, we compare the three models in terms of their performances.

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