Prediction, Prevention and Detection of Fraud in Bank’s Financial Statements an Empirical Study of the Tunisian Context

Prevention Of Earnings Management Behavior In The Banking Industry Through Government Regulations

“…Even before 2005, LLP was used to manipulate the achievement of the profit targets expected by managers, while since 2005 banks have switched to using real earnings management, namely the sale of securities. The research results of Abaoub et al (2013) also prove that banks in Tunisia decrease reported profits by increasing LLP and conversely, these banks are more involved in earnings management practices when operational risk increases. Elluench and Taktak (2015) reexamined the practice of earnings management in Tunisian banks after the publication of the IMF report in 2002.…”

“…Overall banks in Tunisia showed increased reported profits despite the economic downturn. The results of research found by researchers in Tunisia from 1998 to 2007 (Hamza and Taktak, 2009) and from 1999 to 2010 (Abaoub et al, 2013) show that LLP has a relationship to earnings management. Even before 2005, LLP was used to manipulate the achievement of the profit targets expected by managers, while since 2005 banks have switched to using real earnings management, namely the sale of securities.…”

“…The application of earnings management in preparing financial reports also occurs in the banking industry, according to Abaoub and Gamra (2013) there are two specific dimensions of earnings management in the banking industry, namely incentives related to regulatory constraints and methods used to estimate earnings management. The development of earnings management research in the banking industry is no longer motivated only by the interests of individual management, for example to achieve performance bonuses, but to achieve shareholder welfare and also to fulfil the bank's goals in carrying out its duties as a financial institution.…”

“…LLP assists bank managers in dealing with future declines in credit quality (Sari and Widaninggar, 2021). In several research results (Abaoub and Gamra, 2013;Di Martino et al, 2017;Sari and Widaninggar, 2020) it was found that LLP is used by bank managers in managing earnings in various countries, because the determination of LLP uses direct judgment by bank managers which is dominated by higher in subjectivity.…”

Detection and Prediction of Managerial Fraud in the Financial Performance of Indonesian Banks

“…This study is about the detection, predictions, and prevention of cheating through financial ratios analysis by Federal Deposit Insurance Corporation (FDIC) as an indicator. The purpose of this study is to detect, predict, and prevent fraud on banks in Indonesia used a model, where financial ratios are used as an indicator for banks in Indonesia and to test the ability to predict the ratios within three years before the fraud [4].…”