Financial fraud by large corporations in early 2000 paralyzed the financial market in the United States. Regulators needed to find ways to detect and prevent fraudulent reporting. To detect fraud, auditors should use data mining and performance evaluation techniques. For fraud prevention, the auditor should analyze the elements of the fraud triangle: opportunity, integrity and motivation. Fraudulent reporting, also known as management fraud, aims to improve company results. To this end, management overstates assets and revenues and understates liabilities and expenses. GAAP has assigned auditors the task of detecting fraud in financial statements. However, we recommend that investors and creditors assist auditors or government authorities in identifying the financial statement