ABSTRACT:
The reliability of financial statements is important to many people such as investors, corporate shareholders, and auditors. A reliable financial report is free from problems of fraud and manipulation by corporate management. Using the methodology and meta-analysis, the research team found that the application of the M-score model in Vietnam is not yet popular. The number of research papers on the M-score model is small and there is no research using this model to assess the reliability of financial statements. Research results with actual data from the unaudited financial statements of a typical enterprise show that the application of the M-score model to assess the reliability or detect fraud of financial statements is an appropriate fit. However, the research team also found that the M-score model also has a high probability of incorrect identification of unreliable financial statements. Therefore, from the research results, we recommend that investors, shareholders, and stakeholders use a combination of the M-score model together with other technical analysis tools to be able to identify whether a financial statement is reliable.
KEYWORDS:
Financial statements, listed companies, M-score model, Reliability, Vietnam
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