Intelligent systems in accounting, finance and management/Intelligent systems in accounting, finance & management · 2012 · 96 citations · 39 references
Fraud DetectionQuantitative Financial InformationThe NumbersConsumer FraudJournalismFinancial Statement Fraud DetectionAuditingManagementFinancial AccountingDisinformation DetectionFinancial CrimeAccountingGeneral BusinessFinanceBusinessPresentation StyleFinancial FraudFinancial StatementQualitative Textual ContentFinancial Risk
Unlike previous fraud detection research that focused on quantitative financial data, this study examines qualitative textual content in annual reports to detect fraud and assess differences in writing and presentation styles between fraudulent and nonfraudulent companies. The authors applied chi‑square tests to analyze linguistic features in annual reports, testing hypotheses about predictors of fraud. The study demonstrates that qualitative content of annual reports is useful for fraud detection. © 2012 John Wiley & Sons, Ltd.
SUMMARY Unlike previous fraud detection research, a vast majority of which has focused primarily on the use of quantitative financial information to predict fraud, in this study we examine qualitative textual content in annual reports to predict fraud and see whether there are discernible differences in the writing and presentation style between companies that committed fraud and those that did not. We believe that while numeric financial information in the annual reports can hide details of fraud, textual information relating to writing and presentation styles in such reports provides valuable clues pertaining to the existence of fraud. In this study we use the chi‐square test to analyse our data and test hypotheses about predictors of fraud that may explain linguistic feature variations in fraudulent and nonfraudulent annual reports. We provide new results on the usefulness of the qualitative content of annual reports in detecting fraud. Copyright © 2012 John Wiley & Sons, Ltd.
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Predicting Material Accounting Misstatements*
Patricia Dechow, Weili Ge, Chad R. Larson et al. · Contemporary Accounting Research · 2011 · 1.8K citations