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SEC developing new fraud detection technology

from The Washington Post

The Securities and Exchange Commission plans to launch new computer software later this year to spot accounting anomalies, including potential fraud, in the financial statements companies file with the agency. The software would scan a firm's financial disclosures, assess risk factors and generate a score based on a model developed by the agency, Craig Lewis, the SEC's chief economist said in a recent speech. The score would be used to identify potential outliers within a peer group. more

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