A BP Neural Network for Identifying Corporate Financial Fraud

Abstract

The financial security is the lifeblood of a company. Effective identification of corporate financial fraud can protect the safety of funds for investors in some sense. This paper proposed a fraud identification model about corporate financial fraud problem based on principal component analysis (PCA) and BP neural network (BP NN). Compared with other methods, there was a significant improvement in the recognition rate of fraud on financial statements. The experimental results shown that our model is effective, which can accurately identify financial fraud and guarantee the ’s financial security.