DETECTING FINANCIAL STATEMENTS FRAUD IN SELECTED PHARMACEUTICAL COMPANIES IN INDIA
Chetana R. Marvadi · GLOBAL JOURNAL FOR RESEARCH ANALYSIS · 2020
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 conrms 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 reected in their nancial numbers.