ABSTRACT
This chapter examines the manipulation probability of financial statements of commercial banks in an emerging economy. The studying framework is derived from the M-score model to identify fraud in financial statements. The framework uses data from 35 commercial banks in Vietnam to apply and assess fraudulent probability in financial statements through the model. This chapter analyzes the application of the model and indicates the difference in the fraudulent probability of banks. The results give some recommendations to ensure the quality of financial statements. Besides, the results help investors and related parties in the evaluation of financial information quality in the banking field before making their decisions.
