Last modified: 2015-04-07
The paper deals with the possibilities of using different techniques and tools to identify potential risks of manipulated financial statements beyond true and fair view of accounting. Current research has verified the hypotheses of identifying the risks of financial statement manipulation in a case study of five accounting periods using the CFEBT model within the Czech Accounting Standards for different options of using creative accounting methods. Furthermore, the results CFEBT models in each case study are compared with results of the Beneish mode. The model of CFEBT confirmed positive results of the Beneish model for the used technique of windows dressing in terms of the Czech Accounting Standards.
The following paper further analyzes and evaluates techniques and tools to identify risks of manipulated financial statements using the most important methods of creative accounting and accounting fraud in the CFEBT mode, the Beneish model, the Jones model of Nondiscretionary Accruals in comparison with the results of the Altman's model of financial health.