Abstract
A computational fraud detection model (CFDM) was proposed for detecting fraud in financial reporting. CFDM uses a quantitative approach on textual data. It incorporates techniques that use essentially all of information contained in the textual data for fraud detection. Extant work provides a foundation for detecting deception in high and low synchronicity computer-mediated communication (CMC). CFDM provides an analytical method that has the potential for automation. It was tested on the Management's Discussion and Analysis from 10-K filings and was able to distinguish fraudulent filings from non-fraudulent ones. CFDM can serve as a screening tool where deception is suspected.
Original language | English |
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Pages (from-to) | 595-601 |
Number of pages | 7 |
Journal | Decision Support Systems |
Volume | 50 |
Issue number | 3 |
DOIs | |
State | Published - Feb 2011 |
Keywords
- Financial reporting
- Fraud
- Quantitative model
- Text mining