Detecting the Elements for Cosmeticizing the Financial Statements Using Analytical Models

oleh: Valentin BURCĂ, Oana BOGDAN

Format: Article
Diterbitkan: The Body of Expert and Licensed Accountants of Romania 2021-06-01

Deskripsi

Throughout the last three decades, the published literature has been drawing attention towards the ongoing deterioration of the quality of the summary financial statements published by the economic entities. Nevertheless, the financial statements provide conclusive information regarding the companies’ fraud potential. In this article, we aim to illustrate the utility of analytical models for fraud risk assessment by leveraging the information presented in the financial statements. These analytical procedures are even more useful in the current environment of the COVID-19 pandemic.