DETECTION OF FRAUDULENT FINANCIAL REPORTING USING RATIO ANALYSIS

Isa, Nur Fadlizawati and Awalludin, Noor Rohin DETECTION OF FRAUDULENT FINANCIAL REPORTING USING RATIO ANALYSIS. The Asian Journal of Professional and Business Studies, 1 (1). ISSN 2716-666X

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Abstract

The main objective of this analysis was to examine the uses of financial ratios as a tool for detecting fraud in financial reporting. This study examines the annual reports of companies that have been reprimanded by the Securities Commission from 2000 to 2009 for submitting false or misleading information. Ratio-analysis was performed to see if fraudulent financial reporting were predictable or not. The ratios of leverage, profitability, efficiency, and liquidity with have been tested. This study uses trend analysis to figure out changes of more than 10% which may indicate the possibility of financial mismanagement as a change in the ratio of more than 10% annually can be seen as a sign of financial mismanagement. In conclusion, the findings show that signs of fraudulent financial reporting can be detected much earlier

Item Type:	Article
Uncontrolled Keywords:	Fraudulent, Ratios, Financial Reporting
Subjects:	L Education > L Education (General) L Education > LC Special aspects of education
Divisions:	Faculty of Business, Accountancy and Social Sciences
Depositing User:	Mrs Shariffah Shuhaiza Syed Mohd Nor
Date Deposited:	18 Jun 2021 02:03
Last Modified:	17 Aug 2021 04:23
URI:	http://eprints.kuptm.edu.my/id/eprint/1778

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