Advances in Corporate Governance 2(1) p. a6 .
ISSN/ISBN: Not available at this time. DOI: 10.4102/acg.v2i1.6
Abstract: Background: Recent trends in machine learning and statistical techniques have revolutionised traditional auditing practices and unveiled new horizons to enhance corporate governance practices. Objectives: This article proposes a hybrid model by combining statistical techniques, such as Benford’s Law and the Beneish M-Score, with machine learning algorithms to detect fraud. Integration of all the methodologies results in a broad, flexible framework for the identification of irregularities and possible fraudulent activities within financial datasets. Method: The research addresses how these advanced tools meet the gaps in traditional auditing practices, thus enabling a more refined approach towards fraud detection. Results: Empirical findings show that this integrated model will improve detection rates, thus strengthening governance structures and promoting transparency within organisations. Conclusion: Major findings suggest that while machine learning algorithms are effective in improving the identification of complex fraud patterns, statistical methods prove to be effective in preliminary screening. Contribution: The article ends with a discussion on implications for auditors and corporate governance structures along with future research recommendations and applications by the industry.
Bibtex:
@article{,
author = {Tural Salmanov},
title = {Enhancing corporate governance via machine learning and statistical tools for fraud detection},
year = {2025},
journal = {Advances in Corporate Governance},
volume = {2},
number = {1},
pages = {a6},
doi = {10.4102/acg.v2i1.6},
}
Reference Type: Journal Article
Subject Area(s): Accounting