IOSR Journal of Economics and Finance Volume 2 - Simsr International Finance Conference (SIFICO), pp. 1-9.
ISSN/ISBN: 2321-5933 DOI: Not available at this time.
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Abstract: The objective of this research paper is to recommend an additional due diligence tool in order to identify the possibility of fraud on the basis of the financial statements of the concerned companies. The authors have used the Benford’s law to devise a model that highlights the possibility of fraud in the financial statements. The model makes use of statistical techniques to identify the companies that have a high probability of the P&L statement numbers being manipulated. The authors have analyzed the income side and the expense side of statement of profit and loss separately for the companies identified for evaluation in the context of the current study. The model was tested for a sample of 35 companies comprising of both “good” and “fraudulent companies (from accounting perspective)” to understand its efficiency. The results of two companies “First Leasing Company of India” and “TCS” are analyzed in detail in the current paper.
Bibtex:
@article{,
author = {Shalini Talwar and Kinjal Mehta},
title = {Devising a Model for Accounting Fraud Detection Based on Benford’s Law},
year = {2014},
journal = {IOSR Journal of Economics and Finance Volume 2 - Simsr International Finance Conference (SIFICO)},
pages = {1--9},
}
Reference Type: Conference Paper
Subject Area(s): Accounting