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Tenth: Tools used to detect Bankruptcy

In the light of the digital era & industrial revolution 4. The need for advanced tools

to help auditors in detecting probable bankruptcy and default risk evolved
significantly among which are:

1) Data analytics
Cloud computing allows companies to consolidate data across locations and search
for and detect unusual patterns in real time. Enable continuous analyzes, models, and
visualizes data for the purpose of providing effective, efficient, and real-time
assurance by:
▪ discover patterns,
▪ identify anomalies,
▪ identifying relations
▪ and obtaining other useful audit related information

2) Artificial intelligence (AI) & Machine learning

▪ used to monitor financial transactions automatically.
▪ can boost the identification process of Bankruptcy by forming models

focused on sophisticated machine learning (ML).
Anaconda
Tableau

3) Bankruptcy Prediction Models:
Models based on financial information that can classify firms to firms with hifh
possibility of bankruptcy and firms with low possibility of bankruptcy as
▪ Altman Z Model
▪ Zmjewski Model
▪ Ohlson Model

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬