Page 130 - Demo

جميع الحقوق محفوظة ـ اإلعتداء عىل حق املؤلف 127 بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونيةEighth: Using fraud prediction modelsAltman Z-Score = 1.2 X1 + 1.4X2 + 3.3 X3 + 0.6 X4 + 1.0 X5 and obtaining other useful audit related information3.Artificial intelligence (AI) Role on auditing used to monitor financial transactions automatically.  can boost the identification process of fraud by forming models focused on sophisticated machine learning (ML). Many statistical models can be used to verify probability of committing fraud in different firms as follows: First: Altman Z-modelThe Altman Z-score is a statistical model is a formula for determining whether a company, is headed for bankruptcy. Which is considered one of the main incentives for fraudulent financial statements, hence represents firms with high probability of financial statements manipulation and fraudulent financial statements formula takes into account profitability, leverage, liquidity, solvency, and activity ratios. Where:  X1 = working capital / total assets  X2 = retained earnings / total assets  X3 = earnings before interest and tax / total assets  X4 = market value of equity / total liabilities  X5= sales / total assets