Financial Analytics: Science and Experience
 

New models for analysis of the reporting of organizations

Vol. 10, Iss. 11, NOVEMBER 2017

Received: 26 September 2017

Received in revised form: 27 October 2017

Accepted: 30 October 2017

Available online: 15 November 2017

Subject Heading: RISK, ANALYSIS AND EVALUATION

JEL Classification: G32

Pages: 1290–1304

https://doi.org/10.24891/fa.10.11.1290

Bogatyrev S.Yu. Financial University under Government of Russian Federation, Moscow, Russian Federation sbogatyrev@fa.ru

Subject The article deals with the issues of accounting reporting of organizations. Objectives The article aims to assess the quality of accounting reporting of organizations and develop a report manipulation detection algorithm.
Methods For the study, I used the Beneish model obtained from the correlation and regression analysis of company's reporting data.
Results The article presents an algorithm for detecting manipulation of reporting. A set of procedures and analytical tools have been introduced into analyst practice. It is technological, economical in time and work, and easily algorithmized and embedded in mass computing. As well, the article exposes the limitations of validation of the model and outlines the prospects for future use in Russia.
Conclusions and Relevance In the Russian context, practice shows that the proposed model is fully applicable and provides some guidance based on the organizations' reporting. The prospects for launching it in the database of thousands of enterprises are open. This can have a huge effect in the massive monitoring of organizations.

Keywords: manipulation, statements, financial and economic analysis, accounting, verification

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