Fraud Detection for Information Reliability from the Internet in Forensic Accounting

Abstract

Internet is a main factor in a flood of information. There is great concerning about reliability of information from the Internet. Financial statements are opened annually and anybody can obtain them from the Internet. A company manipulates its accounting data in order to look like financially stable. An institutional or individual investor considers the company has a good state in finance part or in business activity from its financial reports. That makes investors failed due to faulty information. Therefore, personal, companies or even countries can become a very dangerous state by usage of incorrect information. To modify accounting data as false is an antisocial action. In forensic accounting, an investigation is conducted to find evidence relevant to accounting scandals that involve making money for use in secret, embezzling company funds, or evading taxes on purpose [1]. But most existing techniques are used for evidence discovery rather than fraud prevention. Fraud prevention in accounting part means to pre-detect frauds by analyzing financial statements. It helps information reliability from the Internet. In this paper, an algorithm is suggested for the detection of financial fraud via financial statements analysis and the test results using this algorithm will be presented.