BENEISH’S M-SCORE MODEL IN THE FUNCTION OF DETECTION OF MANIPULATION IN FINANCIAL REPORTS

Abstract

Financial statements should be prepared in accordance with legal and professional regulations, that is, in accordance with appropriate principles and principles. However, financial reporting is susceptible to manipulation and illegal actions, resulting in obscured or falsified reports. All measures that are deliberately implemented with the aim of not showing the true financial and yield strength of the business entity can be called “creative accounting”. One of the most commonly used models for exposing the manipulative behavior of companies in the segment of financial results is Beneish’s M-score model.