Identify and Ranking of Factors affecting on detecting the financial statement frauds using the Analytical Hierarchy Process (AHP)

The objective of this study is to examine fraud detection of financial statements using the judgment technique based on the Analytic Hierarchy Process (AHP). The dimensions of the fraud triangle include the features of pressure, opportunity, and rationalization, and the 32 sub factors are considered, based on the findings from prior studies in this subject field and also the Statement on Auditing Standards for the continuous assessment of fraud detection. The population of the study comprised of senior auditors, supervisors, senior supervisors, audit manager and partner of the audit institute employed in audit institutes member of the Iranian association of certified public accountants (IACPA). The research is categorized as practical in terms of descriptive - survey methods. The questionnaire is based on experts’ questionnaires and the calculated compatibility rate for each general criterion is less than 0.01. Three fraud factors, inclodeng ‘‘the higher probability of bankruptcy”, ‘‘going concern opinion”, and ‘‘at least two annual negative cash flows from operations”, are in the pressure dimension, respectively. Three fraud factors, comprising ‘‘percentage of purchases related party transaction”, ‘‘percentage of foreign sales”, and ‘‘family firms”, are in the opportunity dimension, as well. Finally, two fraud factors, incloding ‘‘Earning manipulation”, and ‘‘CEO turnover frequency”, are in order in the rationalization dimension. The result, however, shows that first priority pressure, opportunity, second factor and rationalization are ranked as the third effective factor on the detection of fraud.