Abstract

This study investigated the situation of frauds and errors on the financial statements of listed companies on the Ho Chi Minh Stock Exchange. Base on the research model by Dechow, Ge, & Sloan (2011), the authors added a variable is the rate of return on assets (ROA). The research data included 214 enterprises from 2014 to 2016, with 624 observations. The study results showed that three variables including accrual accounting (Rsstacc), accounts receivable customers (Chrec), percentage of asset liquidity (Softasset) have affected positively to the possibility of fraud, errors on the financial statements. In addition, the ratio of return on assets (ROA) is variable in the model also has significant influence and statistics. The ability to forecast fraud, errors in the financial statements of this model is 78.21%.

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