Neural network algorithms for fraud detection: a comparison of the complementary techniques in the last five years

Purpose: The purpose of this research is to analyse the complementary updates and techniques in the optimization of the results of neural network algorithms (NNA) in order to detect financial fraud, providing a comparison of the trend, addressed field and efficiency of the models developed in current research. Design/Methodology/Approach: The author performed a qualitative study where a compilation and selection of literature was carried out, in terms of defining the conceptual analysis, database and search strategy, consequently selecting 32 documents. Subsequently, the comparative analysis was carried out, in turn being able to determine the most used and efficient complementary technique in the last five years. Findings: The results of the comparative analysis depicted that in 2019 there was a greater impact of research based on NNA with 11 studies. 27 complementary updates and techniques were identified related to NNA, where deep neural network algorithms (DNN), convolutional neural network (CNN) and SMOTE neural network. Finally, the evaluation of effectiveness in the collected techniques achieved an average accuracy ranging between 79% and 98.74% with an overall accuracy value of 91.32%. Originality/Value: Being a technique which is applied and compared in diverse studies, ANNs uses a wide range of mechanisms concerning training and classification of data. According to the findings of this research, the complementary techniques contribute to the progress and optimization of algorithms regarding financial fraud detection, having a high degree of effectiveness concerning on-line and credit card fraud

Criminal Regulatory Responses to Corporate Financial Fraud: A Qualitative Approach The Chilean Case

Propósito: Las respuestas regulatorias y legales frente a los grandes escándalos contables ocurridos en las principales economías mundiales han sido abordadas por diversos autores, pero aún no se conoce la experiencia desde la perspectiva de los protagonistas de la realidad social de un país de economía emergente de América Latina, que ha experimentado situaciones similares, relacionadas con casos de fraude de alto impacto público, como es el caso de Chile. La investigación intenta comprender el nivel de preparación que posee el país para disuadir, de forma efectiva, los fraudes corporativos, y conocer si la experiencia de la Unión Europea puede ser un referente para enfrentar dicha problemática. Diseño/metodología/enfoque del estudio: Estudio exploratorio, de carácter cualitativo con diseño fenomenológico estructurado en base a entrevistas en profundidad con informantes claves del ámbito legal y académico, con experiencia principalmente en derecho penal, derecho civil y derecho administrativo chileno y comparado europeo. Hallazgos:  Los hallazgos confirman que el país aún no presenta un nivel de preparación adecuado para modernizar y reformar en forma efectiva su marco regulatorio y legal relacionado con el fortalecimiento de los gobiernos corporativos y la disuasión de los fraudes financieros, según las opiniones manifestadas por los expertos.Purpose: The regulatory and legal responses to the major accounting fraud that have occurred in the world's major economies have been addressed by various authors.  However, the experience from the perspective of the social reality protagonists of an emerging economy country in Latin America, as is the case of Chile, is not yet known.  The research tries to understand the preparation level that the country has to effectively deter corporate frauds, and to know if the experience of the European Union can be a reference to face this problem. Design/methodology/study approach:  Exploratory qualitative study with a phenomenological design structured on the basis of in-depth interviews with key informants from the legal and academic fields, with experience mainly in criminal law, civil law and Chilean and comparative European administrative law. Findings:  The country is not yet adequately prepared to effectively modernize and reform its regulatory and legal framework related to strengthening corporate governance and deterring financial fraud.&nbsp

An Accounting Information Systems Perspective On Data Analytics And Big Data During 2015-2020

Accounting information systems are responsible for providing information that constitutes raw material for decision making in terms of investment, payments to suppliers, payroll, income, among others. The analysis of such information becomes a cornerstone in the positioning strategies through productivity and competitiveness of any organization. When this analysis is applied to large volumes of information, there are Big Data tools that facilitate the grouping of data according to its source or nature. This paper will describe the most influential accounting information systems in the analysis of large volumes of data that affect the decision making of companies in different sectors of the economy during the period between 2015 and 2020

Criminal regulatory responses to corporate financial fraud: a qualitative approach the chilean case

Propósito: Las respuestas regulatorias y legales frente a los grandes escándalos contables ocurridos en las principales economías mundiales han sido abordadas por diversos autores, pero aún no se conoce la experiencia desde la perspectiva de los protagonistas de la realidad social de un país de economía emergente de América Latina, que ha experimentado situaciones similares, relacionadas con casos de fraude de alto impacto público, como es el caso de Chile. La investigación intenta comprender el nivel de preparación que posee el país para disuadir, de forma efectiva, los fraudes corporativos, y conocer si la experiencia de la Unión Europea puede ser un referente para enfrentar dicha problemática. Diseño/metodología/enfoque del estudio: Estudio exploratorio, de carácter cualitativo con diseño fenomenológico estructurado en base a entrevistas en profundidad con informantes claves del ámbito legal y académico, con experiencia principalmente en derecho penal, derecho civil y derecho administrativo chileno y comparado europeo. Hallazgos: Los hallazgos confirman que el país aún no presenta un nivel de preparación adecuado para modernizar y reformar en forma efectiva su marco regulatorio y legal relacionado con el fortalecimiento de los gobiernos corporativos y la disuasión de los fraudes financieros, según las opiniones manifestadas por los expertos.Purpose: The regulatory and legal responses to the major accounting fraud that have occurred in the world's major economies have been addressed by various authors. However, the experience from the perspective of the social reality protagonists of an emerging economy country in Latin America, as is the case of Chile, is not yet known. The research tries to understand the preparation level that the country has to effectively deter corporate frauds, and to know if the experience of the European Union can be a reference to face this problem. Design/methodology/study approach: Exploratory qualitative study with a phenomenological design structured on the basis of in-depth interviews with key informants from the legal and academic fields, with experience mainly in criminal law, civil law and Chilean and comparative European administrative law. Findings: The country is not yet adequately prepared to effectively modernize and reform its regulatory and legal framework related to strengthening corporate governance and deterring financial fraud

Criminal regulatory responses to corporate financial fraud: a qualitative approach the chilean case

Propósito: Las respuestas regulatorias y legales frente a los grandes escándalos contables ocurridos en las principales economías mundiales han sido abordadas por diversos autores, pero aún no se conoce la experiencia desde la perspectiva de los protagonistas de la realidad social de un país de economía emergente de América Latina, que ha experimentado situaciones similares, relacionadas con casos de fraude de alto impacto público, como es el caso de Chile. La investigación intenta comprender el nivel de preparación que posee el país para disuadir, de forma efectiva, los fraudes corporativos, y conocer si la experiencia de la Unión Europea puede ser un referente para enfrentar dicha problemática. Diseño/metodología/enfoque del estudio: Estudio exploratorio, de carácter cualitativo con diseño fenomenológico estructurado en base a entrevistas en profundidad con informantes claves del ámbito legal y académico, con experiencia principalmente en derecho penal, derecho civil y derecho administrativo chileno y comparado europeo. Hallazgos: Los hallazgos confirman que el país aún no presenta un nivel de preparación adecuado para modernizar y reformar en forma efectiva su marco regulatorio y legal relacionado con el fortalecimiento de los gobiernos corporativos y la disuasión de los fraudes financieros, según las opiniones manifestadas por los expertos.Purpose: The regulatory and legal responses to the major accounting fraud that have occurred in the world's major economies have been addressed by various authors. However, the experience from the perspective of the social reality protagonists of an emerging economy country in Latin America, as is the case of Chile, is not yet known. The research tries to understand the preparation level that the country has to effectively deter corporate frauds, and to know if the experience of the European Union can be a reference to face this problem. Design/methodology/study approach: Exploratory qualitative study with a phenomenological design structured on the basis of in-depth interviews with key informants from the legal and academic fields, with experience mainly in criminal law, civil law and Chilean and comparative European administrative law. Findings: The country is not yet adequately prepared to effectively modernize and reform its regulatory and legal framework related to strengthening corporate governance and deterring financial fraud

Los tres (3) obstáculos que impiden la prevención del fraude en los reportes financieros y una propuesta para combatirlos

“¿Cuáles son los obstáculos que podrían estar impidiendo la prevención del fraude en los reportes financieros?” Es probable que el cuestionamiento anterior brote desde diversos organismos reguladores, profesionales y académicos, quienes intentan aplacar el fraude en los reportes financieros a través de múltiples intentos, especialmente considerando que muchos usuarios de la información financiera cada vez están exigiendo mayor transparencia y una rendición de cuentas responsable. En ese sentido, esta investigación busca contribuir con posibles soluciones para derribar los obstáculos que podrían estar impidiendo la implementación de acciones preventivas frente al fraude en los reportes financieros, especialmente en entidades no reguladas por la U.S. Securities and Exchange Commission, pertenecientes a países latinoamericanos miembros de la OCDE. Para poder realizar el estudio, se indagó en diversas fuentes de información, tales como el análisis de cuestionarios, publicaciones científicas internacionales y marcos normativos relacionados con el objeto de estudio. Los hallazgos del estudio mostraron que, aun cuando se han desarrollado sólidos marcos internacionales que orientan a las organizaciones para el logro de sus objetivos minimizando riesgos como los de fraude, existen ciertos obstáculos que impiden que esto suceda en forma pragmática. Estos obstáculos, podrían sintetizarse en la dificultad para evaluar la ausencia de un correcto “Tone at the Top”, una combinación de roles y responsabilidades asociados a las funciones claves de control interno y, por último, una grave ausencia de exigencias e inexistencia de sanciones severas en la legislación local

Are the score ratios conclusive in detecting Financial Fraud? The case of Clínica Las Condes in Chile

This research aims to test the effectiveness of certain ratios & financial models frequently used in the literature as tools to detect accounting manipulation, through the case of Clínica Las Condes in Chile. The period of accounting errors 2008 -2019 was analyzed. Situations such as the strong rejection of a forensic audit to determine the real cause of the problem support the interest in using financial analysis tools to know its health. However, the indicators used fail to classify the case as one of financial fraud, but rather as accounting "irregularities". Despite the fact that the company is awaiting a sentence that will allow it to close the case, which has generated economic, legal, social and reputational costs. The study leads to postulate that financial ratios alone are not a sufficient tool to detect manipulation in financial statements. A holistic analysis of the problem is required, using various methodologies, such as the use of data mining models to help prevent and detect financial frauds in time, which have negative consequences for managers, shareholders, investors and other agents of the econom