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Love School of Business senior presents thesis on fraud detection model

Jake Jimenez ’17 presented his research at the Colonial Academic Alliance Undergraduate Research Conference and the Butler University Undergraduate Research Conference.

By Caroline Perry '18

Jake Jimenez, a senior finance and accounting double major, recently presented his honors research thesis at the Colonial Academic Alliance Undergraduate Research Conference held March 31 and April 1 at Elon, and at the Butler University Undergraduate Research Conference, held April 7 in Indianapolis.

Jake Jimenez '17 presented his thesis at the Colonial Academic Alliance Undergraduate Research Conference and the Butler University Undergraduate Research Conference.

Jimenez presented the fraud detection model he created that can predict whether a company has a high likelihood of fraud in the annual reports it releases to the public. In “Finding Fraud: Financial Ratio Analysis as a Fraud Detection Tool,” the Honors Fellow discusses his analysis of the financial ratios of 1,462 publicly listed manufacturing firms over the period of 1990-2007 to determine the indicators of fraudulent reporting.

This is the first study of American firms with an industry specific approach for financial ratio analysis as a fraud detection tool. The results from Jimenez’s research suggest that developing industry specific models will allow financial ratio analysis to become a more effective and widely utilized fraud detection tool. Jimenez chose this method of fraud detection due to the ease of application and use of publicly available information. His goal was to provide a model that is not only useful to auditors and policy makers, but also to everyday investors.

"Presenting my research has given me the opportunity to combine all of the technical knowledge and presentation skills I have developed throughout my time at Elon,” Jimenez said. “It is exciting to bring to light an important issue facing the market and present a possible avenue for addressing that issue."

Jake Jimenez's thesis, “Finding Fraud: Financial Ratio Analysis as a Fraud Detection Tool," is the first study of American firms with an industry specific approach for financial ratio analysis as a fraud detection tool.

Throughout the research process, Jimenez was mentored by Catherine Chiang, associate professor of accounting.

"None of this success would have been possible without Dr. Chiang’s experience and mentorship," Jimenez said. "I cannot thank her enough for her guidance throughout the past two years.”

Jimenez will next present his research at Elon’s Spring Undergraduate Research Forum on April 25.

Nicole Filippo,
Staff
4/24/2017 1:25 PM