Abstract
Investors rely on companies' financial statements and economic data to inform their investment decisions. However, many businesses manipulate financial statements to raise more capital from investors and financial institutions, which reduces the practicality of financial statements. The modern business environment is highly information-oriented, and firms' information systems and activities are complex and dynamic. Technology for avoiding fraud detection is continually updated. Recent studies have focused on detecting financial statement fraud within a single business, but not within a business group. Development of methods for using diverse data to detect financial statement fraud in business groups is thus a high priority in the advancement of fraud detection. This study develops an approach for detecting fraud in the financial statements of business groups. The proposed approach is applied to reduce investment losses and risks and enhance investment benefits for investors and creditors. The study objectives are achieved through the following steps: (i) design of a process for detecting fraud in the financial statements of business groups, (ii) development of fraud detection techniques for use with such statements, and (iii) demonstration and evaluation of the proposed approach.
| Original language | English |
|---|---|
| Pages (from-to) | 1-23 |
| Number of pages | 23 |
| Journal | International Journal of Accounting Information Systems |
| Volume | 32 |
| DOIs | |
| Publication status | Published - 2019 Mar 1 |
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All Science Journal Classification (ASJC) codes
- Management Information Systems
- Accounting
- Finance
- Information Systems and Management
Cite this
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Fraud detection for financial statements of business groups. / Chen, Yuh Jen; Liou, Wan Ching; Chen, Yuh-Min; Wu, Jyun Han.
In: International Journal of Accounting Information Systems, Vol. 32, 01.03.2019, p. 1-23.Research output: Contribution to journal › Article
TY - JOUR
T1 - Fraud detection for financial statements of business groups
AU - Chen, Yuh Jen
AU - Liou, Wan Ching
AU - Chen, Yuh-Min
AU - Wu, Jyun Han
PY - 2019/3/1
Y1 - 2019/3/1
N2 - Investors rely on companies' financial statements and economic data to inform their investment decisions. However, many businesses manipulate financial statements to raise more capital from investors and financial institutions, which reduces the practicality of financial statements. The modern business environment is highly information-oriented, and firms' information systems and activities are complex and dynamic. Technology for avoiding fraud detection is continually updated. Recent studies have focused on detecting financial statement fraud within a single business, but not within a business group. Development of methods for using diverse data to detect financial statement fraud in business groups is thus a high priority in the advancement of fraud detection. This study develops an approach for detecting fraud in the financial statements of business groups. The proposed approach is applied to reduce investment losses and risks and enhance investment benefits for investors and creditors. The study objectives are achieved through the following steps: (i) design of a process for detecting fraud in the financial statements of business groups, (ii) development of fraud detection techniques for use with such statements, and (iii) demonstration and evaluation of the proposed approach.
AB - Investors rely on companies' financial statements and economic data to inform their investment decisions. However, many businesses manipulate financial statements to raise more capital from investors and financial institutions, which reduces the practicality of financial statements. The modern business environment is highly information-oriented, and firms' information systems and activities are complex and dynamic. Technology for avoiding fraud detection is continually updated. Recent studies have focused on detecting financial statement fraud within a single business, but not within a business group. Development of methods for using diverse data to detect financial statement fraud in business groups is thus a high priority in the advancement of fraud detection. This study develops an approach for detecting fraud in the financial statements of business groups. The proposed approach is applied to reduce investment losses and risks and enhance investment benefits for investors and creditors. The study objectives are achieved through the following steps: (i) design of a process for detecting fraud in the financial statements of business groups, (ii) development of fraud detection techniques for use with such statements, and (iii) demonstration and evaluation of the proposed approach.
UR - http://www.scopus.com/inward/record.url?scp=85057592230&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85057592230&partnerID=8YFLogxK
U2 - 10.1016/j.accinf.2018.11.004
DO - 10.1016/j.accinf.2018.11.004
M3 - Article
AN - SCOPUS:85057592230
VL - 32
SP - 1
EP - 23
JO - International Journal of Accounting Information Systems
JF - International Journal of Accounting Information Systems
SN - 1467-0895
ER -