Research On The Application Of Nonfinancial Data In Financial Reporting Fraud Assesment

Financial report is a method for enterprises to deliver economic signals to the society. The incorrect information sent out by the cheated financial report will mislead the information users and lead to the wrong decisions in investment and alike, therefore bringing loss to the investors. The cheating cases of financial report over the recent years show that the cheating means are more diversified and hard to identify and it is more difficult to find out the cheating merely through financial reports. Under such circumstance, non-financial information receives higher attention from the academic scholars for the identification of the cheating of financial sheets.Non-financial indexes are the drivers of financial indexes, and can explain the changing of financial indexes. If the balance of non-financial indexes and financial indexes of an enterprise is broken, there appears a possibility of financial cheating. This thesis, based on the related theories of financial sheet cheating and the concepts and applications of non-financial information, classifies the non-financial information and establish a non-financial information analyzing system for the identification of cheating.11efficient and non-financial indexes are formed,6widely-applied financial indexed are set to identify the cheating and contradiction variables are established between non-financial indexes and financial indexes. A cheating identification model is finally established based on logistic regression to identify the possibility of the cheating of marketing enterprises. Non-financial information can help auditors to avoid the disadvantages in finding the cheating due to the unfamiliarity of the enterprises’operation. At the same time, the easily understandable and accessible non-financial information can also help the small and medium investors that are not well equipped with rich financial knowledge to enhance their understanding and judgment on cheating.