DETECTING FINANCIAL STATEMENTS FRAUD IN SELECTED PHARMACEUTICAL COMPANIES IN INDIA

Dr. Chetana R. Marvadi

Abstract


In the business environment, rms are expected to disclose accurate and reliable nancial information.
Financial statement fraud is actions which are taken to intentionally distort a company's reported
nancial performance. Major corporate nancial statement Frauds get away in the name of creative accounting. But, they need
to be studied for lessons learned and strategies to avoid or reduce the incidence of such frauds in the future. It is essential for
shareholders, particularly the common man who does not have any access to the company except reported nancial numbers.
This research paper attempts to detect the practices of nancial statement fraud in the Pharmaceutical Sector in India for
investors' interest using Earnings quality, De Angelo and Beneish models of fraud detection. The result conrms the presence of
nancial statement fraud in the companies under study. It is therefore expected that the study will help to improves investor's
belief of a company's performance, as reected in their nancial numbers.


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References


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