{"id":121517,"date":"2024-01-14t17:08:45","date_gmt":"2024-01-14t22:08:45","guid":{"rendered":"\/\/www.g005e.com\/?p=121517"},"modified":"2024-08-29t23:54:05","modified_gmt":"2024-08-30t03:54:05","slug":"can-big-data-spot-financial-fraud","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/01\/14\/can-big-data-spot-financial-fraud\/","title":{"rendered":"can big data spot financial fraud?"},"content":{"rendered":"
<\/strong><\/p>\n google searches give auditors a glimpse of true sales.<\/strong><\/p>\n by 卡塔尔世界杯常规比赛时间 research<\/em><\/p>\n google trends is a free service at the world\u2019s most widely used search engine. in an instant, users can see how often a keyword has been the target of a search.<\/p>\n more: <\/b>will unclogging the accounting pro pipeline kill mobility?<\/a> | accountants cozy up to clients with cas<\/a> | cpas culling clients for better work-life balance<\/a> | women-owned businesses upbeat but need help<\/a> | accountants to the rescue as startups struggle<\/a> | looking for recent grads? good luck<\/a> when that keyword is a product, the searches tend to reveal something about sales.<\/p>\n and that should be of interest to auditors. enron and crazy eddie were neither the first nor the last companies to fudge their financials with upward revenue misreporting. by faking sales, a company can fake its value to investors. auditors are supposed to spot such fakes, but too often they miss them because they rely on numbers provided by management.<\/p>\n researchers at california state university and the chinese university of hong kong have found a correlation between google searches and actual sales. the correlation doesn\u2019t constitute evidence, but it can serve as a red flag warning of possible \u201cmanipulation up,\u201d or mup.<\/p>\n the researchers developed a \u201cmup model\u201d that provides an instant, no-cost, easy and signficant correlative relationship between the big data analytics of google trends and actual corporate sales performance. the advantage of such an external indicator is that it doesn\u2019t depend on internal management data.<\/p>\n the researchers looked for mup companies \u2013 those that were in the top sales growth quartile while showing a large decline in google\u2019s \u201csearch volume index\u201d (svi). those companies just happened to score high in a discretionary-revenues model, two other alternative revenue manipulation identifiers, and coverage by analysts and financial media.<\/p>\n the researchers\u2019 report, published by the peer-reviewed accounting, organizations, and society, stated, \u201cwe find that the incremental odds of a revenue misstatement are 165 percent for a mup firm relative to non-mup firms after controlling for (other factors).\u201d<\/p>\n mupsimple<\/strong><\/p>\n the researchers pointed out that the mup model is most effective for companies that sell brand-name products directly to consumers.<\/p>\n the full-strength mup model assesses and accommodates revenue growth information for an audited company\u2019s industry peers, while a dumbed-down \u201cmupsimple\u201d model looks at nothing more than sales growth of 15 percent for a company with a 15 percent drop in svi.<\/p>\n \u201cwe hasten to add that the purpose of the mup model is to serve as a feasible prototype diagnostic tool for auditors to collect entity business state evidence to perform evidentiary triangulation,\u201d the report says. \u201cwe do not intend for the mup model to substitute for other more traditional indicators of fraud risk.\u201d<\/p>\n in other words, the mup model is a prototype that auditors can already use as a simple tool to enhance one aspect of an audit.<\/p>\n but the real value of the model is that it demonstrates how big data can be a big external indicator of internal fraud. the potentials aren\u2019t just big. they\u2019re huge.<\/p>\n","protected":false},"excerpt":{"rendered":"
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
\n
\nthe mup model<\/strong><\/p>\n