The Importance of the Beneish Model in Detecting Creative Accounting Practices in Banks

Abstract

This study aims to explore the significance of the Beneish Model in detecting creative accounting practices in banks. The study applies the Beneish Model to the United Bank for Commerce and Investment, using the bank's financial statements for the period from 2020 to 2024, in order to uncover the extent of creative accounting practices employed by the bank under study, the study utilizes a descriptive-analytical approach in the theoretical framework and a case study method in the practical application.

      The research yielded several key findings, the most important of which are: Creative accounting practices are intentionally followed by some institutions in light of accounting principles, The Beneish Model plays a significant role in revealing creative accounting practices within economic institutions, The Beneish Model is a useful tool for detecting creative accounting practices and can be applied to improve the quality of financial statements and protect investors, The Beneish Model is crucial in identifying creative accounting practices in banks. A detailed examination of the Beneish Model provides a clear picture of the potential for creative accounting practices, as it relates to the outputs of financial statements. This can help achieve more effective control and focus on areas with a higher probability of manipulation, the study recommends the need to limit creative accounting practices and the manipulation of financial statement data due to their impact on the credibility of these statements for their users. Additionally, it stresses the importance of raising awareness among institutions about the risks associated with creative accounting practices. It also suggests the use of statistical models, including the Beneish Model, by external auditors to detect creative accounting practices, as it is a useful technique and a valuable addition to other control measures they employ in auditing financial statements. Furthermore, the study emphasizes the need for training accountants and financial auditors on how to use this model to detect financial manipulation and creative accounting practices.