Fraud in Financial Statements: a Review of Literature on Detection Techniques

Author:Iulia – Ana STROE, Ph. D. Student, Daniela - Nicoleta MEDINŢU, Ph. D. Student

JEL:M40, M42

DOI:

Keywords:financial fraud, fraud triangle, fraud detection models, data mining techniques

Abstract:
This paper summarizes relevant research findings concerning the detection of financial statements fraud. The study examines different models of fraud risk assessment. The procedures and the ability of auditors to detect fraud, starting with questionnaires and reaching to data mining are discussed. Most of the models are based on the fraud risk factors known as fraud triangle: Pressure, Opportunity and Rationalization. The likelihood of fraudulent financial statements is easier to be observed using fraud risk factors.\r\n

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