LITERATURE REVIEW: DETECTION OF FINANCIAL STATEMENT FRAUD

Abstract

In this work literature related to the detection of fraud in the financial statements are reviewed. Various typesof financial fraud are listed and challenges in the detection of fraud in financial statements are presented. Various techniques of data mining used in the fraud detection are explained. Importance of variables in the financial statement is discussed. Two important works in the fraud detection is explained with various features of the modeling. Also the approach adopted by these research works has been reviewed and best practices are presented. Also a method to remove some of the variables from the list of all variable available as part of the financial statement is explained.