Horizontal and vertical analysis are among the numerous financial statements fraud (FSF) detection methods which have been severely criticized for their apparent imprecision. This paper intends to reverse this through a new technique which combines the two to produce a joint relational trend analysis (RTA). The study adopted the desk research method using a rehashed five-year financial statement data and employed tables and simple MS Excel commands to perform periodic relational analysis by comparing the probabilities of the occurrence of a percentage of an item in a group for the current period with similar probabilities of the same item and group for the base period.
Enyi, Patrick Enyi (2019); Relational Trend Analysis: A Simple and Effective Way To Detect Financial Statements Fraud; International Journal of Scientific and Research Publications (IJSRP)
9(2) (ISSN: 2250-3153), DOI: http://dx.doi.org/10.29322/IJSRP.9.02.2019.p8669