IDEAS home Printed from https://ideas.repec.org/a/gam/jdataj/v6y2021i1p2-d474519.html
   My bibliography  Save this article

The Use of National Strategic Reference Framework Data in Knowledge Graphs and Data Mining to Identify Red Flags

Author

Listed:
  • Charalampos Bratsas

    (School of Mathematics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece
    Open Knowledge Foundation Greece, 54352 Thessaloniki, Greece)

  • Evangelos Chondrokostas

    (School of Mathematics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece
    Open Knowledge Foundation Greece, 54352 Thessaloniki, Greece)

  • Kleanthis Koupidis

    (School of Mathematics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece
    Open Knowledge Foundation Greece, 54352 Thessaloniki, Greece)

  • Ioannis Antoniou

    (School of Mathematics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece
    Open Knowledge Foundation Greece, 54352 Thessaloniki, Greece)

Abstract

Red Flags in fiscal projects are warning signs that may indicate underlying problems with their implementation. In this paper, we present how National Strategic Reference Framework Open Data can be used to take full advantage of semantic web technologies and data mining techniques to build a knowledge-based system that identifies Red Flags. We collected the data from the Open Data API provided by the Greek Ministry of Economy and Finance. Data modeling consist of two ontologies; the Vocabulary of Fiscal Projects, describing the fiscal projects and the National Strategic Reference Framework Greece Vocabulary, illustrating the Greek National Strategic Reference Framework data. We transformed the data into RDF triples and uploaded them onto an OpenLink Virtuoso Server, so that we could retrieve them via SPARQL queries. Performance indicators were defined to assess the state of the project and Density-Based Spatial Clustering of Applications with Noise, (DBSCAN) was used to identify Red Flags. User’s demands is that rejected projects should raise Red Flags, to avoid project failure and assist the auditor to organize the monitoring process efficiently, by avoiding to examine most of the non-problematic projects. We performed a use case scenario in which an auditor has to examine NSRF projects, approximately 12 months before the end of the programming period. The system retrieved the fiscal information, calculated the performance indicators and identified the Red Flags. The last update of the projects status after the end of the programming period was retrieved and extracted the number of rejected projects, to test whether the user requirements are satisfied. Rejected projects consist of 3.8% of the total projects. The results of the use case scenario show that RedFlags platform is more likely to identify project failures and not raise Red Flags on not rejected projects. Therefore, the RedFlags platform using open data, assists the auditor to organize the monitoring process better.

Suggested Citation

  • Charalampos Bratsas & Evangelos Chondrokostas & Kleanthis Koupidis & Ioannis Antoniou, 2021. "The Use of National Strategic Reference Framework Data in Knowledge Graphs and Data Mining to Identify Red Flags," Data, MDPI, vol. 6(1), pages 1-20, January.
    • Handle: RePEc:gam:jdataj:v:6:y:2021:i:1:p:2-:d:474519
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2306-5729/6/1/2/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2306-5729/6/1/2/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Miroslav Beblavý & Emília Sičáková-Beblavá, 2014. "The Changing Faces of Europeanisation: How Did the European Union Influence Corruption in Slovakia Before and After Accession?," Europe-Asia Studies, Taylor & Francis Journals, vol. 66(4), pages 536-556, April.
    2. Charles Kenny & Maria Musatova, 2011. "‘Red Flags of Corruption’ in World Bank Projects: An Analysis of Infrastructure Contracts," Chapters, in: Susan Rose-Ackerman & Tina Søreide (ed.), International Handbook on the Economics of Corruption, Volume Two, chapter 18, Edward Elgar Publishing.
    3. Gullkvist, Benita & Jokipii, Annukka, 2013. "Perceived importance of red flags across fraud types," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(1), pages 44-61.
    4. Fen-May Liou, 2008. "Fraudulent financial reporting detection and business failure prediction models: a comparison," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(7), pages 650-662, July.
    5. Paul Coram & Colin Ferguson & Robyn Moroney, 2008. "Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(4), pages 543-559, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kleanthis Koupidis & Charalampos Bratsas & Christos Vlachokostas, 2022. "OpΕnergy: An Intelligent System for Monitoring EU Energy Strategy Using EU Open Data," Energies, MDPI, vol. 15(21), pages 1-15, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, vol. 11(6), pages 1-31, March.
    2. Gullkvist, Benita & Jokipii, Annukka, 2013. "Perceived importance of red flags across fraud types," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(1), pages 44-61.
    3. Victor Munteanu & Lavinia Copcinschi & Carmen Luschi & Anda Laceanu, 2017. "Internal Audit – Determinant Factor In Preventing And Detecting Fraud Related Activity To Public Entities Financial Accounting," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 9(1), pages 55-63, March.
    4. Vincenzo Alfano & Salvatore Capasso & Rajeev K. Goel, 2021. "EU accession: A boon or bane for corruption?," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 45(1), pages 1-21, January.
    5. Stephen J. Smulowitz & Didier Cossin & Alfredo De Massis & Hongze (Abraham) Lu, 2023. "Wrongdoing in Publicly Listed Family- and Nonfamily-Owned Firms: A Behavioral Perspective," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1233-1264, July.
    6. Shana Clor-Proell & Steven Kaplan & Chad Proell, 2015. "The Impact of Budget Goal Difficulty and Promotion Availability on Employee Fraud," Journal of Business Ethics, Springer, vol. 131(4), pages 773-790, November.
    7. Tiago Cardao-Pito, 2023. "How to identify norms, laws, and regulations that facilitate illicit financial flows and related financial crimes," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 27(4), pages 674-686, August.
    8. Mihály Fazekas & Lawrence Peter King, 2019. "Perils of development funding? The tale of EU Funds and grand corruption in Central and Eastern Europe," Regulation & Governance, John Wiley & Sons, vol. 13(3), pages 405-430, September.
    9. David T. Tan & Larelle Chapple & Kathleen D. Walsh, 2017. "Corporate fraud culture: Re-examining the corporate governance and performance relation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 597-620, June.
    10. Ari Fahimatussyam Putra Nusantara & Gugus Irianto & Yeney Widya Prihatiningtias, 2020. "Fraud prevention and detection practices in the perspective of Jember Regency internal auditor," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 377-384, July.
    11. Isabel Z. Wang & Neil Fargher, 2017. "The effects of tone at the top and coordination with external auditors on internal auditors’ fraud risk assessments," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(4), pages 1177-1202, December.
    12. Harlan L. Etheridge & Kathy H. Y. Hsu, 2015. "Minimizing the Costs of Using Models to Assess the Financial Health of Banks," International Journal of Business and Social Research, LAR Center Press, vol. 5(11), pages 9-18, November.
    13. Antonio Estache, 2014. "Infrastructure and Corruption: a Brief Survey," Working Papers ECARES ECARES 2014-37, ULB -- Universite Libre de Bruxelles.
    14. Dan Amiram & Zahn Bozanic & James D. Cox & Quentin Dupont & Jonathan M. Karpoff & Richard Sloan, 2018. "Financial reporting fraud and other forms of misconduct: a multidisciplinary review of the literature," Review of Accounting Studies, Springer, vol. 23(2), pages 732-783, June.
    15. Gladys Lee & Neil Fargher, 2013. "Companies’ Use of Whistle-Blowing to Detect Fraud: An Examination of Corporate Whistle-Blowing Policies," Journal of Business Ethics, Springer, vol. 114(2), pages 283-295, May.
    16. Evren Dilek Sengur, 2012. "Auditors' Perception Of Fraud Prevention Measures: Evidence From Turkey," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 1-11.
    17. repec:mth:ijafr8:v:8:y:2018:i:4:p:438-456 is not listed on IDEAS
    18. Jinghui Sun & Pamela Kent & Baolei Qi & Jiwei Wang, 2019. "Chief financial officer demographic characteristics and fraudulent financial reporting in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(4), pages 2705-2734, December.
    19. Joseph F. Brazel & Lorenzo Lucianetti & Tammie J. Schaefer, 2021. "Reporting Concerns About Earnings Quality: An Examination of Corporate Managers," Journal of Business Ethics, Springer, vol. 171(3), pages 435-457, July.
    20. Egbunike, Patrick Amaechi & Ezeabasili, Vincent Nnanyereugo, 2013. "Application of Computed Financial Ratios in Fraud Detection Modelling: A Study of Selected Banks in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(11), pages 1405-1418, November.
    21. Daniel CONSTANTIN & Marius Silviu CULEA & Nicoleta CRISTACHE, 2022. "Internal Managerial Control – Perspectives on Some Modern Methods of Reducing the Risk of Fraud in Public Administration," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 27-35.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jdataj:v:6:y:2021:i:1:p:2-:d:474519. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.