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
N1 - Funding Information:
The authors would like to thank the Ministry of Science and Technology, Taiwan , for financially supporting this research under Contract No. MOST105-2410-H-327-014 . Additionally, we deeply appreciate the editor, associate editor and reviewers for their constructive comments, suggestions, and proofreading on the work.
Funding Information:
(In case of Funding) Funding: This study was funded by Ministry of Science and Technology, R.O.C, Taiwan (Grant number MOST105-2410-H-327-014).
Publisher Copyright:
© 2018 Elsevier Inc.
PY - 2019/3
Y1 - 2019/3
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.
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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 -