A novel integrated AHP and MULTIMOORA method with interval-valued spherical fuzzy sets and single-valued spherical fuzzy sets to prioritize financial ratios for financial accounting fraud detection

Article type: Research Article

Authors: Hamal, Serhan | Senvar, Ozlem^{; *}

Affiliations: Marmara University, Department of Industrial Engineering, Istanbul, Turkey

Correspondence: [*] Corresponding author. Ozlem Senvar, Marmara University, Department of Industrial Engineering, Istanbul, Turkey. E-mails: [email protected] and [email protected].

Abstract: Many studies have used different financial ratios for financial accounting fraud detection. This study focuses on multicriteria decision-making (MCDM) for ranking 25 financial ratios with respect to six criteria in detecting financial accounting fraud using interval-valued spherical fuzzy sets (IVSFS) and single-valued spherical fuzzy sets (SVSFS) to overcome uncertainties in decision-making process of financial analysts. This study proposes an integrated Analytic Hierarchy Process (AHP) and Multi-Objective Optimization by a Ratio Analysis plus the Full Multiplicative Form (MULTIMOORA) approach using IVSFS and SVSFS. Comparative results are obtained and discussed in prioritization of financial ratios for both IVSFS and SVSFS.

Keywords: Financial ratios, financial accounting fraud detection, single-valued spherical fuzzy sets (SVSFS), interval-valued spherical fuzzy sets (IVSFS), analytic hierarchy process (AHP), multi-objective optimization by a ratio analysis plus the full multiplicative form (MULTIMOORA)

DOI: 10.3233/JIFS-219195

Journal: Journal of Intelligent & Fuzzy Systems, vol. 42, no. 1, pp. 337-364, 2022