DETECTING FINANCIAL STATEMENTS FRAUD IN SELECTED PHARMACEUTICAL COMPANIES IN INDIA

Dr. Chetana R. Marvadi

Volume : IX, Issue : I, January - 2020

DETECTING FINANCIAL STATEMENTS FRAUD IN SELECTED PHARMACEUTICAL COMPANIES IN INDIA

Dr. Chetana R. Marvadi

Abstract :

In the business environment, firms are expected to disclose accurate and reliable financial information. Financial statement fraud is actions which are taken to intentionally distort a company�s reported financial performance. Major corporate financial 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 financial numbers. This research paper attempts to detect the practices of financial statement fraud in the Pharmaceutical Sector in India for investors� interest using Earnings quality, De Angelo and Beneish models of fraud detection. The result confirms the presence of financial 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 reflected in their financial numbers.