Fraud Prediction in the Financial Statements Using Financial Ratios (Case Study: Companies Listed on the Tehran Stock Exchange)

Fraud is as one of the most important issues that arises in accounting and auditing financial statements. The aim of this study is the prediction of fraud in the financial statements using financial ratios in companies listed on the Tehran Stock Exchange between the years 2006 to 2014. For this purpose, 181 companies were selected in accordance with limitations. To estimate the fraud, Provisions contained in the independent auditor's opinion and the opinions of experts Company classified these provisions, ranked and the percentages for each year is allocated using fuzzy AHP model. In addition, according to the literature, the financial ratios derived, and finally using statistical tests, 7 ratios are selected such as: working capital to asset, accounts receivable to sales, cash to current debt, Inventory to current assets, debt to equity, gross profit to asset, the absolute value changes in current ratio. Finally, the results show 64.04% predictability of the estimated model using the logit model.