Taking the hunch out of the crunch: A framework to improve variable selection in models to detect financial statement fraud

IF 3.1 4区 管理学 Q2 BUSINESS, FINANCE Accounting and Finance Pub Date : 2023-10-27 DOI:10.1111/acfi.13192
Adrian Gepp, Kuldeep Kumar, Sukanto Bhattacharya
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Abstract

Abstract Financial statement fraud is a costly problem for society. Detection models can help, but a framework to guide variable selection for such models is lacking. A novel Fraud Detection Triangle (FDT) framework is proposed specifically for this purpose. Extending the well‐known Fraud Triangle, the FDT framework can facilitate improved detection models. Using Benford's law, we demonstrate the posited framework's utility in aiding variable selection via the element of surprise evoked by suspicious information latent in the data. We call for more research into variables that measure rationalisations for fraud and suspicious phenomena arising as unintended consequences of financial statement fraud.
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从危机中走出预感:一个改进模型中变量选择以检测财务报表欺诈的框架
财务报表舞弊是一个代价高昂的社会问题。检测模型可以提供帮助,但缺乏指导这种模型的变量选择的框架。为此,提出了一种新的欺诈检测三角(FDT)框架。FDT框架扩展了众所周知的欺诈三角,可以促进改进的检测模型。利用本福德定律,我们证明了假设的框架在通过数据中潜在的可疑信息引起的惊喜元素来帮助变量选择方面的效用。我们呼吁对衡量舞弊合理性的变量进行更多的研究,以及作为财务报表舞弊意外后果而产生的可疑现象。
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来源期刊
Accounting and Finance
Accounting and Finance BUSINESS, FINANCE-
CiteScore
5.10
自引率
7.70%
发文量
0
期刊介绍: Accounting & Finance enjoys an excellent reputation as an academic journal that publishes articles addressing significant research questions from a broad range of perspectives. The journal: • publishes significant contributions to the accounting, finance, business information systems and related disciplines • develops, tests, or advances accounting, finance and information systems theory, research and practice • publishes theoretical, empirical and experimental papers that significantly contribute to the disciplines of accounting and finance • publishes articles using a wide range of research methods including statistical analysis, analytical work, case studies, field research and historical analysis • applies economic, organizational and other theories to accounting and finance phenomena and publishes occasional special issues on themes such as on research methods in management accounting. Accounting & Finance is essential reading for academics, graduate students and all those interested in research in accounting and finance. The journal is also widely read by practitioners in accounting, corporate finance, investments, and merchant and investment banking.
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