BENISCH'S M-SCORE MODEL AS A TOOL FOR IDENTIFYING SIGNS OF ACCOUNTING (FINANCIAL) REPORTING FALSIFICATION

UDC 657.632.2
DOI: 10.36871/ek.up.p.r.2024.12.11.006

Authors

Betal A. Shogenov,
Anzhelika R. Mirzoyeva,
Kabardino-Balkarian State Agrarian University, Nalchik, Kabardino-Balkarian Republic, Russian Federation
Madina K. Zhangerieva,
Doctor of Economics, General Director of Alfa LLC, Baksan, Kabardino-Balkarian Republic, Russian Federation

Abstract

This article discusses the application of the Benisch model as a tool for detecting signs of financial statement fraud. The Benisch model is a discriminant analysis of five financial ratios that can help auditors and analysts identify potentially fraudulent statements. The au-thors discuss the theoretical foundations of the Benisch model, its strengths and weaknesses, as well as its practical application. The article provides an example of using the model in real cases of financial statement fraud.
In addition, the article reviews recent research on the Benisch model and suggests direc-tions for future research. Overall, the article provides a comprehensive overview of the Benisch model as a valuable tool for detecting signs of financial statement fraud.

Keywords

financial statements, Benisch model, falsification of indicators