This paper provides new evidence on the characteristics of firms that commit financial statement fraud. We examine how previous earnings management impacts the likelihood that a firm will commit financial statement fraud and in doing so develop three new fraud predictors. Using a sample of 54...

This study compares the performance of six popular statistical and machine learning models in detecting financial statement fraud under different assumptions of misclassification costs and fraud firm to non-fraud firm ratios. The results show, somewhat surprisingly, that logistic regression and...

The audits of most clients involve consideration of trade credit risk. However, little is known about how suppliers' trade credit risks affect their auditors' decisions that determine audit pricing and audit quality. Data capturing trade credit risk generated by suppliers' clients is quite...