Detection of Financial Statement Fraud Using Beneish Model (doi: 10.14706/icesos178)
Abstract: One of the greatest challenges faced by auditors is to detect anomalies in financial statement reporting. Once the anomalies are detected they have to be further investigated by forensic accountants. However, the practice of forensic accounting has not yet become a reality in Bosnia and Herzegovina. So the main purpose of the study is to analyze to which degree BH companies are exposed to the financial statement fraud and with respect to that the need for forensic accountants. The financial statement data will be collected from BH companies and it will be analyzed using Beneish model. The Beneish model is the mathematical model that identifies the manipulation of earnings through financial ratios. These analytical techniques should reveal the unconventional variations in financial statement reporting, indicating that there is possibility of fraudulent transactions. Key words: Beneish model, fraudulent reporting, forensic accounting