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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.
IN MATH: 1. n. a standard normal score. 2. n. a score normally distribution with a mean of 0 and a standard deviation of 1. 3. n. for a sample or population, the ratio of the difference between a score and the mean and the standard deviation. See below.