INPROFORUM 2017

Detection of Outliers as a Possible Method of Accounting Fraud Revelation
Marcela Hradecká

Language: en
Last modified: 2018-04-10

Abstract


The globalization and the development of enterprising environment allowed the rise of many multinational corporations all over the world. At the same time there appears the phenomenon of sophisticated  methods of accounting fraud and tax optimization. Tax avoidance and tax evasion with the aim to reach the highest savings in paying taxes. Financial and tax authorities of individual states have to react to the new situation quickly and to apply the most efficient and effective methods in accounting fraud detection and prevent corporate tax evasion on global scale.

Both financial and non-financial methods are used in the fraud detection. This article is concerned with the possible use of the outliers method for the accounting fraud detection. This method refers to the extreme values analysis, their detection and demonstrability and draws attention to numerical values that are unusual in some way.


Keywords


Fraud; Detection methods; Outlier; Metric clustering; dendrogram

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