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5. Motivated by the disproportionately high incidence of fraudulent financial reporting in the IT sector, where technological capability is a major source of competitive advantage,
5. Motivated by the disproportionately high incidence of fraudulent financial reporting in the IT sector, where technological capability is a major source of competitive advantage, Studies such as Fung (2015), Deloitte Forensic Centre (2007), Martin et al. (2002), and Wu (2001) have documented that the IT sector is far beyond every other sector in terms of the incidence of fraudulent financial reporting. As in other sectors, revenue manipulation is the most common type of fraud investigated in the IT sector, with fictitious sales being the primary form of such manipulation. Such fictitious sales include the fabrication of purchase orders and shipping records as AIS1| EAB 21203 SEPTEMBER 2020 well as the misclassification of "round-tripping" barter and three-party transactions as revenue sources. Study and investigate the possible relationship between technological capability and fraud probability in the financial statement
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