—Fraud is a major concern for organizations
world-wide. Governments and regulators are now focusing on
management’s responsibility for effective fraud management
programs. It is not a matter whether your organization is large
or small or what country or industry your organization is in, as
long as humans are involved in organizations, the risk of fraud
is real. This paper discusses a local case and our analyses are
basically subjected to how the fraud was committed and the
detection techniques involved. Beneish Model and Ratios
Analysis were selected as detection tools in reference to this
case. Being the best tools chosen for this case, those techniques
will benefit the auditors and other professionals. They can learn
these simple, yet effective methods of financial statement fraud
detection. Legal implications and its uses will also be discussed
in this paper.
—Fraud management, detection techniques,
beneish model, legal implications.
N. Omar and Z. Mohd Sanusi are with the Accounting Research Institute,
Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia
R. Kunji Koya was with the Universiti Teknologi MARA (e-mail:
N. A. Shafie is with the Faculty of Accountancy, University Teknologi
MARA, 40450, Shah Alam, Malaysia (e-mail: firstname.lastname@example.org).
Cite: Normah Omar, Ridzuan Kunji Koya, Zuraidah Mohd Sanusi, and Nur Aima Shafie, "Financial Statement Fraud: A Case Examination Using Beneish Model and Ratio Analysis," International Journal of Trade, Economics and Finance vol.5, no.2, pp. 184-186, 2014.