Design and implementation of a tool to detect accounting frauds

Yeog Kim, Antonio Savoldi, Hyewon Lee, Sunmi Yun, Sangjin Lee, Jongin Lim

Research output: Chapter in Book/Report/Conference proceedingConference contribution

4 Citations (Scopus)

Abstract

Accounting frauds of a company have direct and indirect effects on financial institutions. For instance, the well-known cases of Enron and WorldCom [7] became a major scandal with worldwide repercussions in 2002. As a result, we began to pay attention to accounting transparency. Since then, many countries have established a law, a principle or a guide of accounting and accounting audit like Sarbanes-Oxley Act and Statements of Auditing Standards [1]. However, some companies commit accounting frauds to manipulate, change or delete financial statements, despite these rules. The reason why companies do this is because they want to increase their stock prices. Thus, companies commit skillful frauds following accounting principles, which makes it difficult to detect a fraud unless one is a forensic accountant. In this paper we propose a method to detect accounts with fraud symptoms in financial statements which hide accounting frauds or attempts of tax evasions. Furthermore, we have implemented a tool to detect them and tested it using data of companies which committed accounting frauds.

Original languageEnglish
Title of host publicationProceedings - 2008 4th International Conference on Intelligent Information Hiding and Multimedia Signal Processing, IIH-MSP 2008
Pages547-552
Number of pages6
DOIs
Publication statusPublished - 2008
Event2008 4th International Conference on Intelligent Information Hiding and Multiedia Signal Processing, IIH-MSP 2008 - Harbin, China
Duration: 2008 Aug 152008 Aug 17

Publication series

NameProceedings - 2008 4th International Conference on Intelligent Information Hiding and Multimedia Signal Processing, IIH-MSP 2008

Other

Other2008 4th International Conference on Intelligent Information Hiding and Multiedia Signal Processing, IIH-MSP 2008
Country/TerritoryChina
CityHarbin
Period08/8/1508/8/17

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Graphics and Computer-Aided Design
  • Signal Processing

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