FACTORS OF POSSIBLE RISK PREDICTION FOR FINANCIAL STATEMENT FALSIFICATION IN BANKING SECTOR OF RUSSIAN FEDERATION

摘要

It is known that the financial statements are the subject of falsification. Risk assessment of possible falsification is a complex and urgent problem, which concerns a large number of scientific studies that use in modeling a variety of information contained in the financial statements. This paper presents the results of a study of the Russian companies financial reports falsifications. As a special object of a study are chosen commercial banks, whose licenses were revoked by the Bank of Russia in 2013-2016 year. The study is based on the hypothesis that formalized "red flags" are required to determine the risk of fraud by various characteristics of the company's activities. The presence of significant evidence obtained earlier, prompted to choose a composition of the Board of Directors as area of research for highlighting "red flags". Paper examines the connection between the risk of distortion of the financial statements and the company's Board of Directors. Based on empirical analysis of groups of banks implicated in the falsification of financial statements, this study discusses the characteristics of the Board of Directors that can be identified as important to assess the possible risk of fraud.