No. 2 May 2011 pp. 19–50 American Accounting Association DOI: 10.2308/ajpt-50009 Financial Statement Fraud Detection: An Analysis of Statistical and Machine Learning Algorithms Johan Perols SUMMARY: This study compares the performance of six popular statistical and machine learning models in detecting financial statement fraud under different assumptions of misclassification costs and ratios of fraud firms to nonfraud firms. The results show‚ somewhat surprisingly‚ that logistic regression
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“Criminal phenomenon” is known as white collar crime. White collar crime was firstly talked by Edwin H. Sutherland who was a criminologist. He defined white collar crime in a presidential meeting of the American Sociological Society. This meeting was held at the state of Philadelphia in December 1939 to 1940s. He defined white collar crime as “a crime committed by a person of respectability and high social status in the course of his occupation”. (“Sutherland‚ 1949:9”). White collar crime includes
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fiscal year of 2007 NutraCea allegedly overstated its sales revenue in its financial statements by reporting deceptive sales and applying inappropriate revenue recognition practices and concealing its factual operating results. The SEC charged
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B1 – Ethics‚ fraud and internal control at Bern Fly Company The main purpose that a good internal control must fulfil is to protect the firm’s assets from fraud and theft. As we can see from the description of Bern Fly Company’s case‚ the internal control within the company leaves much to be desired. As it can be read in the case the salespersons get commission promptly after each order taken by their customers without any control to check if that order is real or only a fictitious one. This
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ISSUES IN ACCOUNTING EDUCATION Vol. 28‚ No. 4 2013 pp. 901–912 American Accounting Association DOI: 10.2308/iace-50542 Lessons of the HealthSouth Fraud: An Insider’s View Weston L. Smith INTRODUCTION T he night was December 6‚ 2005. I could not go to sleep. As I tossed and turned‚ my entire life replayed in my mind. How did I get to where I was? I went all the way back to my childhood. I was raised in a middle-income home with an older brother and sister and two loving parents. We were far from
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Michael Wine’s article‚ “Anger Follows an Accusation of Voter Fraud” was published less than a week ago in the New York Times. In this article‚ Wine summarizes the Trump Voter Fraud Panel and the recent controversies since it was created in May. Wines does a great job of specifically focusing in on the main point of the article right when he begins writing. The main idea is that the fraud panel is causing controversies when prying into vote fraud situations. For instance‚ the commission’s leader suggested
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283). Stolen funds were used to support Madoff’s luxurious lifestyle and to bribe employees to conceal the fraud (p. 284). Elaborate falsifications were also created to hide the fraud (p. 289). However‚ Madoff finally confessed to his family on December 10‚ 2008 (Gregoriou & Lhabitant‚ 2009‚ p. 91)‚ due to the steady flow of redemptions following the financial crisis (Rhee‚ 2009‚ p. 365). Madoff knew that the scheme could not continue indefinitely. Henriques (2011‚ p. XXIII) quotes
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Running Head: Credit Card Fraud Impact of Credit Card Fraud Outline Card Credit Fraud Thesis Statement: Credit card fraud is an inclusive term for larceny and deception committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to attain goods without paying‚ or to achieve illegal resources from an account. Credit card fraud is also an appendage to identity theft. According to the Federal Trade Commission‚ while identity
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August 2008 10 Ways to Improve Internal Controls and Prevent Fraud in your Small to Medium Sized Business There aren’t too many “universal truths” in this world – but - I’ll go out on a limb and say this - everyone hates getting ripped off or taken advantage of. As the CEO‚ President or owner of a small to medium-sized business you are more vulnerable to being taken advantage of by unscrupulous employees and vendors. There are several reasons for this‚ including; It is harder for smaller
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Analysis on Credit Card Fraud Detection Methods 1 1 S. Benson Edwin Raj‚ 2A. Annie Portia Assistant Professor (SG)‚ P.G.‚ 2Scholar Department of CSE Karunya University‚ Coimbatore counter the credit card fraud effectively‚ it is necessary to understand the technologies involved in detecting credit card frauds and to identify various types of credit card frauds [20] [21] [22] . There are multiple algorithms for credit card fraud detection [21] [29]. They are artificial neural-network models which
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