The Appropriateness of Two Square and Five Cheating Models in Determining the Possibility of Fraud in the Misleading Financial Statements -An applied study on companies listed in the Egyptian Stock Exchange

Financial statements are a key tool to meet the accounting information needs of stakeholders, who rely on this information to make decisions that best serve their interests. In order to be useful, accounting information must meet its qualitative characteristics, especially honest representation Faithful Representation, since this characteristic is associated with the low level of information risk faced by decision makers, stakeholders, users of financial statements and the auditor's report (Arens et al., 2014). .
As a result of the management's ability to use its authority by misrepresenting the financial statements, through deliberate intervention in the preparation of these statements, or the so-called fraud cases (Fraud) (Musabat, 2010; Pustylnick, 2011 Bandyopadhyay et al., 2014; Mahama, 2015 ), This reflected negatively on the reliability of the information delivered by the users' financial statements. This has created the need to rely on an effective mechanism to ensure the integrity and integrity of the preparation of the financial statements, so that confidence can be placed on the
Information (Goodwin and Wu, 2015), which has been supported by some studies (Al-Serafi, 2015; Zaki, 2016) in the Egyptian business environment and professional practice.
In this context (Sarwoko and Agoes, 2014; Saladrigues and Grano, 2014; Wudu, 2014; Birjandi et al., 2015; Caskey and Laux, 2015), there was a negative relationship between the quality of external audit and the existence of fraud in the financial statements because these The audit can then, through; plan and perform adequate audit procedures to detect and report fraud, and perform additional actions to ensure that all probabilities of its commission are tracked.
The oversight role of the external audit is linked to the improvement of the quality of the audit, which in turn depends on two specifics; By professional standards and rules, ethics and behavior of the profession (Zaki, 2016).
On the contrary, it is clear that, while auditors have complied with the requirements of professional issuances related to their professional responsibility for the prevention of fraud, an analysis of operational reality shows that fraudulent cases in the financial statements have been increasingly attributed (Carcello and Hermanson, 2008; Tugas, 2008). 2012; Shelton, 2014; Abdullahi and Mansor, 2015; Yusof et al., 2015; Manurung and Harsika, 2015) to the reduced efficiency of auditors in assessing the possibility of fraud in deliberately misrepresented financial statements, indicating the need to expand
External Regulatory, which refers to the extent of the existence of mechanisms to ensure that laws and regulations are not violated and that sanctions and sanctions are enforced once they are derailed.
In order to restore stakeholder confidence in the capital market and reduce the unethical behavior of managers through fraud, the efficiency of auditors in predicting the possibility of fraud in financial statements must be strengthened, which is reflected in improving the quality of the audit and increasing its positive return. To restrict the possibility of managers misleading users of accounting information, through fraud. Accordingly, there is a question about the appropriateness of predictive models, especially two square and five fraud models, in predicting the possibility of fraud in the misleading financial statements of companies listed on the Egyptian Stock Exchange? This is what this research will answer in theory and in practice.