A Quick and Easy Approach to Financial Fraud Detection
| dc.contributor.author | Moulton, Pamela | |
| dc.contributor.author | Liu, Fang | |
| dc.date.accessioned | 2020-09-10T15:26:33Z | |
| dc.date.available | 2020-09-10T15:26:33Z | |
| dc.date.issued | 2018-12-01 | |
| dc.description.abstract | [Excerpt] Financial fraud is a significant cost in the hospitality industry. According to the Report to the Nations on Occupational Fraud and Abuse, the typical organization loses 5 percent of its annual revenues to fraud. Hotels in particular are estimated to lose 5 to 6 percent of revenues to fraud on average, while the National Restaurant Association estimates that restaurants on average lose 4 percent of revenues to fraud. These are losses as a percentage of top-line revenues, not profits, meaning that their magnitudes represent a significant risk to hospitality methodology for detecting financial irregularities that may signal fraud based on a mathematical principle known as Benford’s Law. The analysis presented here can firms, given the industry’s relatively thin net margins. This study presents a simple be applied by hospitality industry managers at all levels, from individual units or departments to entire regions or companies. The Cornell Hospitality Tool accompanying this report provides an easy-to-use spreadsheet-based application that can be used to quickly analyze any set of financial values (for example, guest checks, receivables, payables, or reimbursements) to quickly detect suspicious activities. | |
| dc.description.legacydownloads | Moulton2018_Financial_fraud_detection.pdf: 63 downloads, before Aug. 1, 2020. | |
| dc.description.legacydownloads | 0-BenfordTool_submission_revisedNov2018.xlsm: 581 downloads, before Aug. 1, 2020. | |
| dc.identifier.other | 13519997 | |
| dc.identifier.uri | https://hdl.handle.net/1813/70973 | |
| dc.language.iso | en_US | |
| dc.rights | Required Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved. | |
| dc.subject | financial fraud | |
| dc.subject | detection | |
| dc.subject | risk | |
| dc.subject | Benford's Law | |
| dc.subject | hospitality industry | |
| dc.title | A Quick and Easy Approach to Financial Fraud Detection | |
| dc.type | article | |
| local.authorAffiliation | Moulton, Pamela: pm388@cornell.edu Cornell University School of Hotel Administration | |
| local.authorAffiliation | Liu, Fang: fl357@cornell.edu Cornell University |