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Application of Beneish M-score model on small and medium enterprises in Federation of Bosnia and Herzegovina Abstract: The last two decades have witnessed high-profile corporate accounting scandals and multi billion-dollar frauds. Since then, forensic accounting has been in focus and has played a prominent role in discovering financial statement frauds. This research aims to analyze the applicability of the Beneish M-Score model on small and medium enterprises (SMEs) in Federation of Bosnia and Herzegovina (FBiH). Based on a sample that includes 4,580 small and medium enterprises, data will be analyzed using audited financial statements in the period from 2008 to 2015. By using independent sample t-test, correlation, and regression, it has been concluded that Beneish model is indeed applicable on the market of FBiH and aids effectively in the detection of fraud in financial statements. The study describes the comparison of different industry sectors regarding the possible manipulators and serves as a solid foundation for further research in the area of forensic accounting. Keywords: manipulative accounting, fraudulent activities, financial crime, forensic accounting, Beneish M-score Pages: 146-163

Author

Listed:
  • Sanel HALILBEGOVIC

    (Burch University, Sarajevo, Bosnia and Herzegovina)

  • Nedim CELEBIC

    (Burch University, Sarajevo, Bosnia and Herzegovina)

  • Ermin CERO

    (Burch University, Sarajevo, Bosnia and Herzegovina)

  • Elvisa BULJUBASIC

    (Burch University, Sarajevo, Bosnia and Herzegovina)

  • Anida MEKIC

    (Burch University, Sarajevo, Bosnia and Herzegovina)

Abstract

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Suggested Citation

  • Sanel HALILBEGOVIC & Nedim CELEBIC & Ermin CERO & Elvisa BULJUBASIC & Anida MEKIC, 2020. "Application of Beneish M-score model on small and medium enterprises in Federation of Bosnia and Herzegovina Abstract: The last two decades have witnessed high-profile corporate accounting scandals an," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 146-163, June.
    • Handle: RePEc:jes:journl:y:2020:v:11:p:146-163
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    2. Healy, Paul M., 1985. "The effect of bonus schemes on accounting decisions," Journal of Accounting and Economics, Elsevier, vol. 7(1-3), pages 85-107, April.
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