AbstractThis thesis presents an investigative study of the detection of fraudulent financial statement by applying machine learning techniques. It specifically focuses on the processes of computational intelligence. My research aims to compare the applicability of a relatively inclusive group of machine learning techniques to enable financial statement fraud prediction. More specifically, first, we examine which can utilise algorithms the most given the variegated assumptions about the fraud’s classification costs. Second, we discuss which predictors are essential in algorithms for the discovery of fraudulent financial statements.
Furthermore, this thesis examines whether the utilisation of creative accounting decreased after adopted IFRS. In particular, Chapter 1 is the introductory chapter of the research. Chapter two contained a literature review of the accounting environment in Greece. Also, chapter two examines the causes that led to the establishment of Greek legal and accountancy systems. It addresses the association between the accounting and the taxation systems.
Moreover, this chapter offers information on the differences between the IFRS and the Greek GAAP. Chapter three comprises a literature review and theoretical analysis of creative accounting—chapter four refers to the research methods and empirical studies utilised and undertaken, respectively. We present a comprehensive classification and using the critical aspects of the algorithm detection used. We investigated the fraud type and the detection methods’ performance for financial statement fraud, analyse the existing fraud detection literature. Specifically, we study the implementation of machine learning techniques, like the Naïve Bayes, Random Forest, Support Vector. Machine (SVM), Decision Tree, Logit Regression, and K-NN. We followed a comprehensive classification framework of machine learning techniques’ application in fraudulent financial statements detection.
Furthermore, Chapter six refers to the effect that IFRS implementation had on earnings management. It emphases the utilisation of creative accounting in the periods before and after the IFRS is adopted. Chapters five and seven address the experimental results of this research. Finally, Chapter Eight is the concluding chapter, and it refers back to the research questions and objectives. Also, it states the contributions and the findings of the study again.
|Date of Award
|Richard Trafford (Supervisor), Lisa Jack (Supervisor) & Konstantinos Vergos (Supervisor)