#01Jul 21, 2026
cs.LG
Benchmarking Generalization in Financial Statement Fraud Detection: robust evaluation and novel tasks
Guy Stephane Waffo Dzuyo, Gaël Guibon, Christophe Cerisara and 1 more
Financial statement fraud detection (FSFD) is crucial for market integrity but faces challenges from increasingly sophisticated schemes and under-utilized textual data in financial reports. Existing methods often rely on random data splits, leading to overoptimistic performance estimates that do not reflect real-world generalization to new companies or future periods. To address this recurring problem with the state of the art, we propose a robust FSFD framework leveraging Large Language Models (LLMs) to integrate both structured financial data and unstructured textual information from financial reports. We provide a more realistic evaluation through a novel and challenging benchmark task called Company-Isolated FSFD (CI-FSFD). We construct and make publicly available a comprehensive U.S. company dataset combining financial statements, summarized MD&A text, and fraud labels. Our approach achieves the best performance on the challenging CI-FSFD task, demonstrating the critical value of textual data and robust evaluation for reliable financial fraud detection.
#02Jul 21, 2026
cs.AI
Sequential Learner Modeling Using Multi-Relational Graph Convolutional Networks
Rawaa Alatrash, Mohamed Amine Chatti, Hong Yang and 1 more
User modeling is a critical task in a variety of personalized systems. Recognizing their effectiveness in learning from graph-structured data, Graph Neural Networks (GNNs), particularly Graph Convolutional Networks (GCNs), are increasingly employed for user modeling. However, existing approaches typically treat different relation types in a graph as homogeneous, limiting their ability to capture richer semantics and construct more informative user models. While multi-relational GNNs (MR-GNNs) have been adopted for representation learning and recommendation, their application for user modeling remains unexplored. Moreover, existing GNN-based user modeling approaches ignore the user interaction sequence. To address these research gaps, in this work we propose MR-ConceptGCN, a novel fully unsupervised approach focused on concept-based sequential learner modeling using multi-relational GCNs (MR-GCNs). MR-ConceptGCN effecively combines Personal Knowledge Graphs (PKGs), MR-GCNs, and the pre-trained language model SBERT to obtain enhanced relation- and semantic-aware representations of the PKG items. The enriched embeddings of the knowledge concepts that a learner did not understand when interacting with learning materials in CourseMapper are then used to construct a sequential learner model that combines long-term and short-term learner interactions. We report the results of an online user study (n = 31), demonstrating the benefits of MR-ConceptGCN in terms of several important user-centric aspects including accuracy, usefulness, diversity, and satisfaction with an educational recommender system.
#03Jul 21, 2026
cs.CL
Prompt Design at Scale: How Format, Instruction Count, and Context Length Shape Instruction Adherence and Hallucination in Large Language Models
Netanel Eliav
Practitioners make three prompt-design decisions with almost no controlled evidence behind them: how to format instructions and context (markdown, plain text, prose, or tabular), how many simultaneous instructions a system prompt can carry before compliance degrades, and how much context a model can hold before recall and honesty degrade. We report two controlled experiments crossing all three factors on one held, contamination-free synthetic corpus (the "Book of Veyra," 8,780 uniquely-named entities, deterministically regenerable from a fixed seed), evaluated across five models. Experiment 1 (960 calls/model) measures instruction-following decay as rule count N grows from 10 to 160, crossed with four formats and system-prompt vs. user-turn placement. Perfect-response rate collapses to zero by N=80 for every model, format, and placement. Placement produces effects at least as large as format at N=160 in most models, but the direction is model-specific. No model shows a reliable markdown advantage; one 35B model favors plain text instead. Experiment 2 (5,520 calls/model) measures recall accuracy, false-premise sycophancy, and absent-fact fabrication across a 2k-to-512k-token context ladder in the same four formats. Recall stays near ceiling through 64-128k tokens, then degrades sharply and format-dependently: one model's accuracy spread reaches 48 points at 128k tokens. Fabrication never occurs (0/5,760 probes), and sycophancy stays negligible (<=8.3%). What rises sharply near each model's context ceiling is outright refusal to answer (0% to 79-90%), distinct from sycophancy or fabrication. Neither pre-registered format ordering holds, and token overhead (+22% to +37% over plain text) further changes which format is preferable where accuracy spread is genuine. We release the full harness, corpus generator, and raw results (VeyraBench): https://github.com/iNetanel/veyrabench
#04Jul 21, 2026
cs.AI
CodeRescue: Budget-Calibrated Recovery Routing for Coding Agents
Qijia He, Jiayi Cheng, Chenqian Le and 8 more
Coding agents increasingly operate in executable environments where a failed attempt produces actionable feedback rather than merely an incorrect answer. Existing cost-aware systems typically treat such failures as cascade decisions: try a cheap model first, then escalate hard cases to a stronger and more expensive model. In coding, however, execution feedback can also make further cheap-model recovery worthwhile, raising a budgeted deployment question: when should an agent spend more cheap compute, and when should it escalate? We formulate this post-failure decision as recovery routing over heterogeneous actions and train a supervised router from execution rollouts. To make the same router usable under changing budgets, we add a Conformal Risk Control (CRC) layer that selects a deployment-time cost penalty without retraining and provides marginal expected-cost control under exchangeability. Across held-out failures from five coding benchmarks, cheap recovery and escalation exhibit complementary success patterns. The calibrated frontier improves over fixed actions, prompt-only routers, and a binary cascade baseline; in the main GPT-5.4-nano/GPT-5.4 setting, one CRC-calibrated frontier point exceeds always-escalate solve rate while using 35% of its mean recovery cost. Code is available at https://github.com/Qijia-He/agent-budget-control.
#05Jul 21, 2026
cs.LG
ISO: An RLVR-Native Optimization Stack
Hanqing Zhu, Wenyan Cong, Zhizhou Sha and 8 more
Reinforcement learning with verifiable rewards (RLVR) is rapidly advancing the reasoning capabilities of language models, yet the optimization layer that converts reward feedback into weight-space updates remains poorly understood. Building on our prior analysis (Zhu et al., 2025), we study this missing layer through the singular structure of model weights and identify spectral inheritance: RLVR can reuse the base model's weight spectra while acquiring new behavior through changes in the associated input and output singular frames. We operationalize spectral inheritance as Isospectral Optimization (ISO), an RLVR-native, fixed-spectrum optimization framework with complementary offline and online instantiations. Offline, ISO-Merger combines the frame changes of shared-base specialists into a single fixed-spectrum model, requiring no post-merge data, rollouts, gradient updates, or on-policy distillation (OPD). It recovers complementary specialist capabilities and achieves the strongest aggregate performance among the compared data-free merging methods. Online, ISO-Optimizer applies a chosen base optimizer, including AdamW and Muon, to the frame variables while keeping the base spectra fixed. Across reasoning and coding tasks ranging from 1.5B to 8B parameters, ISO-Optimizer improves accuracy in the reported runs and reaches matched scores with substantially fewer training steps. On Qwen3-8B-Base, AdamW reaches an aggregate accuracy of 0.495 after 270 training steps. ISO-AdamW reaches the same accuracy after only 100 training steps and improves further to 0.509 after 210 training steps. Together, ISO offers a concrete answer to RLVR's missing optimization layer: rather than inheriting pre-training optimization wholesale, design post-training around the structure of reward-driven adaptation: inherit the spectrum, optimize the frames.