Cash Flow Pattern Analysis of Fraud and Non-Fraud Firms: A Comparison and Contrast

Hdl Handle:
http://hdl.handle.net/10675.2/621245
Title:
Cash Flow Pattern Analysis of Fraud and Non-Fraud Firms: A Comparison and Contrast
Authors:
Runger, Shannon
Abstract:
Companies may exhibit one of eight possible cash flow patterns on their Statement of Cash Flows. By pair-matching 30 firms that were known to have issued fraudulent financial statements with 30 non-fraud firms of similar size and industry, a comparison and contrast of the cash flow patterns can be made and the results analyzed. In my research, I examine and analyze the cash flow patterns of fraud and non-fraud firms as reported on the Statement of Cash Flows to determine whether or not the patterns provide some indication of fraudulent activity. I hypothesize that the fraud firms would be more likely to show a cash flow pattern during the year prior to fraud that indicated the firm was struggling and that alternatively, the pattern during the fraud year would be one that indicates a firm is stable and profitable. My findings not only do not support this hypothesis, they also indicate that this method of cash flow pattern analysis does not provide a reliable indication or prediction of fraudulent activity.
Affiliation:
Knox School of Accountancy
Issue Date:
May-2016
URI:
http://hdl.handle.net/10675.2/621245
Type:
Thesis
Language:
en
Series/Report no.:
Spring; 2016
Appears in Collections:
Knox School of Accountancy Theses; Honors Program Theses

Full metadata record

DC FieldValue Language
dc.contributor.authorRunger, Shannonen
dc.date.accessioned2016-11-14T19:34:49Z-
dc.date.available2016-11-14T19:34:49Z-
dc.date.issued2016-05-
dc.identifier.urihttp://hdl.handle.net/10675.2/621245-
dc.description.abstractCompanies may exhibit one of eight possible cash flow patterns on their Statement of Cash Flows. By pair-matching 30 firms that were known to have issued fraudulent financial statements with 30 non-fraud firms of similar size and industry, a comparison and contrast of the cash flow patterns can be made and the results analyzed. In my research, I examine and analyze the cash flow patterns of fraud and non-fraud firms as reported on the Statement of Cash Flows to determine whether or not the patterns provide some indication of fraudulent activity. I hypothesize that the fraud firms would be more likely to show a cash flow pattern during the year prior to fraud that indicated the firm was struggling and that alternatively, the pattern during the fraud year would be one that indicates a firm is stable and profitable. My findings not only do not support this hypothesis, they also indicate that this method of cash flow pattern analysis does not provide a reliable indication or prediction of fraudulent activity.en
dc.language.isoenen
dc.relation.ispartofseriesSpringen
dc.relation.ispartofseries2016en
dc.rightsCopyright protected. Unauthorized reproduction or use beyond the exceptions granted by the Fair Use clause of U.S. Copyright law may violate federal law.en
dc.subjectCash Flow Patternsen
dc.subjectFrauden
dc.titleCash Flow Pattern Analysis of Fraud and Non-Fraud Firms: A Comparison and Contrasten
dc.typeThesisen
dc.contributor.departmentKnox School of Accountancyen
dc.description.advisorDugan, Michaelen
All Items in Scholarly Commons are protected by copyright, with all rights reserved, unless otherwise indicated.