Redicting financial statement fraud of listed companies in Vietnam: the effectiveness of the pentagon fraud

Abstract

Financial statements provide useful information for plenty of users especially for external users. They rely on that information to make decisions, so that it is important to assure information presented truthfully and fairly. This research aims to predict financial statement fraud of listed companies in Vietnam. We decide to use the pentagon fraud theory to examine and evaluate how it is effective in prediction of fraudulent financial reporting. The study was conducted on 100 companies in Ho Chi Minh Stock Exchange and Hanoi Stock Exchange in 2022. Stata 17.0 software was used to process data after collecting from FiinPro. Research is intended to contribute to effective methods of predicting financial statement fraud. This will be useful for those who look forward to reliable information.