Interpretable Fuzzy Rule-Based Systems for Detecting Financial Statement Fraud
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F19%3A39914916" target="_blank" >RIV/00216275:25410/19:39914916 - isvavai.cz</a>
Result on the web
<a href="https://link.springer.com/chapter/10.1007/978-3-030-19823-7_36" target="_blank" >https://link.springer.com/chapter/10.1007/978-3-030-19823-7_36</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/978-3-030-19823-7_36" target="_blank" >10.1007/978-3-030-19823-7_36</a>
Alternative languages
Result language
angličtina
Original language name
Interpretable Fuzzy Rule-Based Systems for Detecting Financial Statement Fraud
Original language description
Systems for detecting financial statement frauds have attracted considerable interest in computational intelligence research. Diverse classification methods have been employed to perform automatic detection of fraudulent companies. However, previous research has aimed to develop highly accurate detection systems, while neglecting the interpretability of those systems. Here we propose a novel fuzzy rule-based detection system that integrates a feature selection component and rule extraction to achieve a highly interpretable system in terms of rule complexity and granularity. Specifically, we use a genetic feature selection to remove irrelevant attributes and then we perform a comparative analysis of state-of-the-art fuzzy rule-based systems, including FURIA and evolutionary fuzzy rule-based systems. Here, we show that using such systems leads not only to competitive accuracy but also to desirable interpretability. This finding has important implications for auditors and other users of the detection systems of financial statement fraud.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
10201 - Computer sciences, information science, bioinformathics (hardware development to be 2.2, social aspect to be 5.8)
Result continuities
Project
<a href="/en/project/GA19-15498S" target="_blank" >GA19-15498S: Modelling emotions in verbal and nonverbal managerial communication to predict corporate financial risk</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
IFIP Advances in Information and Communication Technology. Vol. 559
ISBN
978-3-030-19822-0
ISSN
1868-4238
e-ISSN
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Number of pages
12
Pages from-to
425-436
Publisher name
Springer
Place of publication
Berlin
Event location
Hersonissos
Event date
May 24, 2019
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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