1Thuy Vinh Nguyen, 2Thi Huong Tram Le
1,2Accounting Department, University of Labour and Social Affairs, Vietnam
DOI : https://doi.org/10.47191/ijmra/v6-i8-65Google Scholar Download Pdf
ABSTRACT:
The article has used the methodology, analysis and synthesis to accomplish the set research objectives. Accordingly, based on the methodology, the article has presented the concept, purpose and importance of information provided in financial statements. Under many influences such as pressure to commit fraud, opportunities for fraud or management's attitude will lead to the intention to manipulate the financial statements. Next, the article also analyzes typical fraud cases, the impact of fraudulent financial statements on all financial market participants and identifies common forms of financial fraud in Vietnam. Vietnam. From these common types of fraud, the authors also propose two typical models to support fraud detection that are highly appreciated, the M-score model and the Z-score model.
KEYWORDS:Financial statements, Fraud, M-score, Model, Z-score
REFERENCES1) Accounting Law No. 88/2015/QH13, accessed July 17, 2023 from https://thuvienphapluat.vn/van-ban/Ke-toan-Kiem-toan/Luat-ke-toan-2015-298369.aspx
2) Alfian, F., & Triani, N. N. A. (2019). Fraudulent financial reporting detection using beneish m-score model in public companies in 2012-2016. Asia Pacific Fraud Journal, Volume 4, Nomor 1 (January-June) 2019, pp.27-42
3) Altman E.I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy.
4) Andriawan, N. F., & Salean, D. (2016). Analisis Metode Altman Z-Score. JEA17: Jurnal Ekonomi Akuntansi, 1 (1), pp.67-82
5) Anjum, S. (2012). Business bankruptcy prediction models: A significant study of the Altman's Z-score model. Asian journal of management research, Volume 3 Issue 1, 2012, pp.212-219
6) Auditing Standard No. 240: Auditors' responsibilities related to fraud during the audit of financial statements (Issued together with Circular No. 214/2012/TT-BTC dated December 6, 2012 of the Ministry of Finance). Finance)
7) Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (2001). Financial Reporting Fraud: Could It Happen to You?. Journal of Corporate Accounting & Finance, 12(4), 3-9.
8) Beneish, M.D. (1999). The Detection of Earnings Manipulation, Indiana University, Kelley School of Business, Working Paper Series.
9) Boyle, D. M., Boyle, J. F., & Mahoney, D. P. (2015). Avoiding the fraud mind-set. Strategic Finance, 96(8), 41-47.
10) Circular No. 200/2014/TT-BTC, guidance on corporate accounting regime,
11) Circular No. 53/2016/TT-BTC, amending and supplementing a number of articles of Circular No. 200/2014/tt-btc dated December 22, 2014 of the Ministry of Finance guiding the corporate accounting regime, accessed on December 12 July 2023 from https://thuvienphapluat.vn/van-ban/Doanh-nghiep/Thong-tu-53-2016-TT-BTC-sua-doi-Thong-tu-200-2014-TT-BTC-huong -dan-che-do-ke-toan-entertainment-entertainment-306808.aspx
12) Grove, H., & Basilico, E. (2011). Major financial reporting frauds of the 21st century: Corporate governance and risk lessons learned. Journal of Forensic and Investigative Accounting, 3(2).
13) Grove, H., F. Selto and J. Sorensen. (1982). Detecting Management Fraud: Combining an Empirical and Probabilistic Approach. Symposium on Auditing Research V, University of Illinois, November, 1982, pp. 73-116 and 153-162.
14) Hang, D.T.T. (2022). Types of fraud on corporate financial statements and implications for Vietnam. Financial Magazine, period 1 - June 2022.
15) Hołda, A. (2020). Using the Beneish M-score model: Evidence from non-financial companies listed on the Warsaw Stock Exchange. Investment Management & Financial Innovations, 17(4), 389-401.
16) Li, J. (2012). Prediction of corporate bankruptcy from 2008 through 2011. Journal of Accounting and Finance, 12(1), 31-41.
17) MacCarthy, J. (2017). Using Altman Z-score and Beneish M-score Models to Detect Financial Fraud and Corporate Failure: A Case Study of Enron Corporation. International Journal of Finance and Accounting 2017, 6(6): 159-166. DOI: 10.5923/j.ijfa.20170606.01
18) Nguyen, H. A., & Nguyen, H. L. (2016). Using the M-score model in detecting earnings management: Evidence from non-financial Vietnamese listed companies. VNU Journal of Economics and Business, 32(2). pp.14-23
19) Panigrahi, C. M. A. (2019). Validity of Altman’s ‘z’score model in predicting financial distress of pharmaceutical companies. NMIMS journal of economics and public policy, 4(1) January 2019, pp.65-73
20) Schilit, H., “Financial Shenanigans: Detecting Accounting Gimmicks that Destroy Investments,” CFA Journal, 2010, pp. 1-8.
21) The Journal of Finance, vol. 23 no. 4, p. 589–609
VOLUME 06 ISSUE 08 AUGUST 2023
There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.
Our Services and Policies
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected.
The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.
International Journal of Multidisciplinary Research and Analysis will publish 12 monthly online issues per year,IJMRA publishes articles as soon as the final copy-edited version is approved. IJMRA publishes articles and review papers of all subjects area.
Open access is a mechanism by which research outputs are distributed online, Hybrid open access journals, contain a mixture of open access articles and closed access articles.
International Journal of Multidisciplinary Research and Analysis initiate a call for research paper for Volume 07 Issue 05 (May 2024).
PUBLICATION DATES:
1) Last Date of Submission : 26 May 2024 .
2) Article published within a week.
3) Submit Article : editor@ijmra.in or Online
Why with us
1 : IJMRA only accepts original and high quality research and technical papers.
2 : Paper will publish immediately in current issue after registration.
3 : Authors can download their full papers at any time with digital certificate.
The Editors reserve the right to reject papers without sending them out for review.
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal may be returned to the authors for revision or rejected. The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.