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A mathematical model that uses financial ratios and eight variables to identify whether a company has manipulated its earnings. The variables are constructed from the data in the company's financial statements and, once calculated, create an M-Score to describe the degree to which the earnings have been manipulated.
For example, 0 is equal to the young adult mean value, +1 is 1 standard deviation above the young adult mean, â1 is 1 standard deviation below. In theory, the T score provides a way of using a single set of numbers for all devices and all skeletal sites.