The accuracy of the model in predicting fraud in financial statements of commercial banks in Vietnam

Abstract

Financial statements of banks always play a significant role for users and market activities. Fraud in commercial banks’ financial statements can have a serious impact on not only the operation of the bank, but also the users of service banks and money markets. The study using the M-score model of Beneish (1999) has added some variables to determine the fraudulent identification of financial statements of commercial banks in Vietnam. The research results show that there are 5 factors in the financial reporting fraud model of commercial banks in Vietnam: Revenue growth rate, asset quality ratio, financial leverage ratio, growth firm size and bad debt ratio in commercial banks. The accuracy of the model in predicting fraud in financial statements of commercial banks in Vietnam at 20% was 63,16%.