UTADIS METHOD FOR DETERMINING FRAUD IN FINANCIAL STATEMENTS

Abstract

Companies can manipulate their debts, sales, net profit, revenue and expenditure in their financial statements when they want to pay less tax or to “adorn” their financial situation when they take a loan from bank, or attract new investors. One way to detect fraud financial statements is UTADIS (Utilites Additives DIScriminantes) classification method. UTADIS separates financial statements to fraud financial statements and no-fraud financial statements, using additive utility function, computer program matlab and financial rates: debt/equity, sales/total assets, net profit/sales and other.