Title

A computational model for financial reporting fraud detection

Document Type

Article

Publication Title

Decision Support Systems

Abstract

A computational fraud detection model (CFDM) was proposed for detecting fraud in financial reporting. CFDM uses a quantitative approach on textual data. It incorporates techniques that use essentially all of information contained in the textual data for fraud detection. Extant work provides a foundation for detecting deception in high and low synchronicity computer-mediated communication (CMC). CFDM provides an analytical method that has the potential for automation. It was tested on the Management's Discussion and Analysis from 10-K filings and was able to distinguish fraudulent filings from non-fraudulent ones. CFDM can serve as a screening tool where deception is suspected.

DOI

https://doi.org/10.1016/j.dss.2010.08.010

Publication Date

2-2011

Share

COinS