Evaluation of financial statements manipulations with the Beneish model

The data index that business record, categorize, and finally provide as a report during the year is financial information. Manipulation of financial information refers to the act of interfering at the request of the enterprise management to present the financial information that should be present in the enterprises in a different manner. Financial information manipulation misdirects users and potential users who invest in the stock market. Economic crises that can have an impact on the nation's economy can emerge in nations where financial data is routinely manipulated. Because of this, it is important to approach every firm that is thought to be an investment with caution, and any decisions should be the result of thorough investigation. The enterprise's independent audit reports should be thoroughly evaluated before beginning the research to be done. In this study, the Beneish TR Model, which had been customized for Turkey, was utilized to investigate the manipulation of financial data. In 2018, 2019, 2020, and 2021, the financial data of the companies in the Textile, Clothing, and Leather Based industries traded in Borsa Istanbul were analyzed. The research led to the discovery that the majority of businesses frequently distort financial data. This circumstance demonstrates how greatly firms have lost the precision and dependability of financial information. As a result of the research, the years investigated due to the COVID-19 pandemic were divided into two separate groups as 2018, 2019 as pre-pandemic and 2020, 2021 as post-pandemic. This difference is made in order to assess how the COVID-19 epidemic's effects on the economy are reflected in the financial statements and how the information in those statements affects the manipulation of financial data. Both the potential for financial data manipulation before the epidemic in 2018, 2019, and the potential for manipulation following the outbreak were looked into. As a result of this research, the contrary situation has also been found in light of the rise in the probability of manipulation, even though there are aberrant changes in financial data following the COVID-19 epidemic. Because of this, it would be incorrect to draw any firm conclusions about the epidemic's impact on financial information manipulation