Using statistical methods for detecting profit manipulation in financial reporting

Abstract

The reliability of financial reporting is a critical factor for effective enterprise management, as managerial decisions, financial condition assessments, and strategic planning are based on it. One of the key challenges in financial analysis is the potential manipulation of profit figures, which may result from subjective interpretations of accounting transactions or deliberate adjustments to financial data. In this context, quantitative analysis of financial information becomes particularly important, as it enables the detection of unusual deviations in reporting figures and the assessment of their consistency. The study aims to explore the possibilities of using statistical methods to identify distortions in profit indicators in corporate financial reporting and to evaluate their role in enhancing the reliability of financial information. Methods. The research employs statistical analysis, generalization, comparison, and systematization of economic data. Quantitative analysis tools were applied to assess data distributions, identify deviations in the structure of financial results, and detect potential signs of misstatement in financial reporting. Results. The study demonstrates the importance of applying statistical tools to analyze corporate financial results. Quantitative analysis enables the identification of unusual changes in profit structure, the evaluation of relationships among key financial indicators, and the detection of potential discrepancies in reporting. The findings show that statistical procedures improve the accuracy of financial analysis and allow the timely identification of abnormal trends in enterprise profit dynamics. Conclusions. The application of statistical methods in financial reporting analysis enhances the objectivity of evaluating enterprise financial results and provides additional means for verifying the reliability of financial information. Quantitative analysis supports more effective financial control, helps identify inconsistencies in financial indicators, and improves the information base for enterprise management.