The Study of Coupling Benford’s law and Social Network Analysis to Detect Fraudulent Financial Statement

• Main Authors: Ruei-Shiou Lin, 林瑞修
• Other Authors: Shi-Ming Huang
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/7xy3g9

碩士 === 國立中正大學 === 資訊管理系研究所 === 104 === Since the American Enron, WorldCom occur financial fraud incidents. In recent years, the company of stock market continue to occur fraudulent financial statement, not only domestic but also spread to the whole world. With the strengthen of Monitoring, more and more financial fraud incidents surfaced, display the company are inadequate for internal fraud detection and external legislation. In order to improve corporate governance and reduce the cost of inappropriate expenditure, must take prevention measures to reduce financial fraud and other illegal behavior. In order to reduce amount of loss due to fraudulent financial statement, company must actively to detect fraud risk factors. Therefore, this study proposed audit mechanism to detect fraudulent financial statement, coupling social network density and financial index analyze investor relations from financial statements, and using benford’s law to detect abnormal nodes to verify authenticity and rationality from 28 industry total 1308 company’s financial statement. According to the experimental results show that some high abnormal company have occurred financial fraud case in the industry, other high abnormal record company will be treated as a suspect of observation object, must study financial statement in deep. However, there is no absolute mechanism to detect fraud, sometimes only discovered anomalies so that auditors can find abnormal financial statements quickly, improve efficiency and reduce personnel costs.