scholarly journals Responsibility for Committing Accounting Offenses in the Criminal Law with Finland and Russia as an Example

2017 ◽  
Vol 4 (3) ◽  
pp. 134-139
Author(s):  
V A Jilkin
Keyword(s):  
Financial Reporting ◽  
Criminal Law ◽  
Information Exchange ◽  
Competent Authority ◽  
Economic Security ◽  
Practical Implementation ◽  
Fraudulent Financial Reporting ◽  
Accounting Rules ◽  
International Tax ◽  
Tax Information Exchange

This article discusses the responsibility and punishment for violation of accounting rules in Finland and Russia. Multilateral Competent Authority Agreement, signed by 87 countries, will ensure consistent practical implementation of international tax information exchange on income and taxes paid. Modern audit has developed methods for detection of fraudulent financial reporting and provision of economic security.

scholarly journals Life Support Paradigm — a New Idea for the Development of Accounting and Reporting

2021 ◽  
Vol 8 (2) ◽  
pp. 24-37
Author(s):  
O. V. Rozhnova ◽  
T. V. Lesina
Keyword(s):  
Financial Reporting ◽  
Information Exchange ◽  
Life Support ◽  
Practical Implementation ◽  
Professional Judgment ◽  
Modern Theory ◽  
Social Transformations ◽  
Economic Agents ◽  
Accounting Theory ◽  
The Individual

The article provides a comprehensive authors' study of a new accounting and reporting paradigm, which takes into account the interdependence of the life support of stakeholders and economic agents in the face of uncertainty, risks, new opportunities associated with environmental and social transformations, the transition to digital and remote technologies and the use of artificial intelligence. The authors present a new accounting model, which is formed under the influence of vital issues of ecology, social development, information exchange, automation and, as a result, the manifestation of serious interest in non-financial indicators and non-financial reporting. Due to the rapid changes in accounting and reporting there arise many questions of a conceptual nature, especially in industrial sphere, which calls for the formation of a fundamentally new theoretical study. In the current situation with COVID-19, a company being a representative of an economic community faces social and environmental problems, the successful solution of which provide the life support of the whole mankind. The research uses the techniques of comparative analysis of existing scientific and theoretical materials, methods of logical and expert analysis. To achieve the results of the study and confirm the hypothesis, the authors reconstructed the chronology of the emergence of accounting models having generalized the works of modern scientists in this area. The results of the work confirm the need to determine the actual essential approach to the accounting and reporting paradigm: it is revealed that the modern theory is shaped under the influence of the needs of the individual, company and society. It is proposed to characterize the life support paradigm as the formation of information reflecting the conditions of life support of the company and interested parties, taking into account the values accepted. The authors argue that the proposed accounting theory is related to life support and life values and is not limited to an economic operation. The research results can be applied to further develop the ideas of the authors and improve the method of professional judgment when developing the accounting and reporting paradigm. The results of the research can be used to improve the method of professional judgment in the development of the accounting and reporting paradigm and its practical implementation, as well as for continuing theoretical developments in the field of accounting theory.

NEW AND INNOVATIVE METHODS OF THE CONCEPT OF TAXATION OF SMALL BUSINESS

2018 ◽  
Author(s):  
Sergey Kaledin ◽  
Ekaterina Shestakova
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Information Exchange ◽  
Tax Policy ◽  
The State ◽  
Innovative Methods ◽  
International Tax ◽  
Tax Payments ◽  
Tax Information Exchange

At present, the concept of taxation has gone beyond the tax policy of the state and beyond the Tax Code, since there are non-tax payments. In addition, even small businesses may face the peculiarities of international tax information exchange, which will be automated from 2018, since 2017 the role of banks in the area of tax inspections has been strengthened, the concept of unreasonable tax benefit has been changed and the final beneficiary has been verified. Thus, the Russian concept of taxation of small business has recently undergone significant changes.

scholarly journals Does Ecuador Comply with International Tax Information Exchange Standards Required to Apply the Multilateral Agreement on Mutual Administrative Assistance in Tax Matters?

2021 ◽  
Vol 4 (1) ◽  
pp. 57
Author(s):  
Gabriela Rivadeneira Chacón
Keyword(s):  
International Organizations ◽  
Tax Evasion ◽  
Information Exchange ◽  
Multilateral Agreement ◽  
Practical Information ◽  
International Tax ◽  
Almost All ◽  
International Conventions ◽  
Tax Information Exchange ◽  
Administrative Assistance

The exchange of tax information is essential to prevent fraud and tax evasion. Accordingly, states and international organizations have developed international conventions regarding the exchange of tax information. One example is the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. Some States, including Ecuador, have signed and ratified this Convention. However, it is unclear whether Ecuador currently meets almost all Convention's requirements.In this article, I investigated the Ecuadorian regulations and showed that Ecuador complies with most of the Convention’s standards. However, Ecuador does not have a specific comprehensive law that regulates information exchange. Therefore, Ecuador should develop policies and norms that exclusively regulate tax information exchange to facilitate practical information exchanging with other tax authorities.

Fraud of Financial Statements at Listed Enterprises on Ho Chi Minh City Securities Department

2018 ◽  
Vol 34 (4) ◽  
Author(s):  
Nguyen Tien Hung ◽  
Huynh Van Sau
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
Viet Nam ◽  
Fraud Triangle ◽  
Fraudulent Financial Reporting ◽  
Financial Statement Fraud ◽  
Corporate Fraud ◽  
Two Factors

The study was conducted to identify fraudulent financial statements at listed companies (DNNY) on the Ho Chi Minh City Stock Exchange (HOSE) through the Triangular Fraud Platform This is a test of VSA 240. At the same time, the conformity assessment of this model in the Vietnamese market. The results show that the model is based on two factors: the ratio of sales to total assets and return on assets; an Opportunity Factor (Education Level); and two factors Attitude (change of independent auditors and opinion of independent auditors). This model is capable of accurately forecasting more than 78% of surveyed sample businesses and nearly 72% forecasts for non-research firms.  Keywords Triangle fraud, financial fraud report, VSA 240 References Nguyễn Tiến Hùng & Võ Hồng Đức (2017), “Nhận diện gian lận báo cáo tài chính: Bằng chứng thực nghiệm tại các doanh nghiệp niêm yết ở Việt Nam”, Tạp chí Công Nghệ Ngân Hàng, số 132 (5), tr. 58-72.[2]. Hà Thị Thúy Vân (2016), “Thủ thuật gian lận trong lập báo cáo tài chính của các công ty niêm yết”, Tạp chí tài chính, kỳ 1, tháng 4/2016 (630). [3]. Cressey, D. R. (1953). Other people's money; a study of the social psychology of embezzlement. New York, NY, US: Free Press.[4]. Bộ Tài Chính Việt Nam, (2012). Chuẩn mực kiểm toán Việt Nam số 240 – Trách nhiệm của kiểm toán viên đối với gian lận trong kiểm toán báo cáo tài chính. [5]. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.[6]. Võ Hồng Đức & Phan Bùi Gia Thủy (2014), Quản trị công ty: Lý thuyết và cơ chế kiểm soát, Ấn bản lần 1, Tp.HCM, Nxb Thanh Niên.[7]. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman independence on corporate fraud. Managerial Finance 26 (11): 55-67.[9]. Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99. Available at SSRN 1295494.[10]. Lou, Y. I., & Wang, M. L. (2011). Fraud risk factor of the fraud triangle assessing the likelihood of fraudulent financial reporting. Journal of Business and Economics Research (JBER), 7(2).[11]. Perols, J. L., & Lougee, B. A. (2011). The relation between earnings management and financial statement fraud. Advances in Accounting, 27(1), 39-53.[12]. Trần Thị Giang Tân, Nguyễn Trí Tri, Đinh Ngọc Tú, Hoàng Trọng Hiệp và Nguyễn Đinh Hoàng Uyên (2014), “Đánh giá rủi ro gian lận báo cáo tài chính của các công ty niêm yết tại Việt Nam”, Tạp chí Phát triển kinh tế, số 26 (1) tr.74-94.[13]. Kirkos, E., Spathis, C., & Manolopoulos, Y. (2007). Data mining techniques for the detection of fraudulent financial statements. Expert Systems with Applications, 32(4), 995-1003.[14]. Amara, I., Amar, A. B., & Jarboui, A. (2013). Detection of Fraud in Financial Statements: French Companies as a Case Study. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(3), 40-51.[15]. Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. Accounting Review, 443-465.[16]. Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5), 24-36.[17]. Persons, O. S. (1995). Using financial statement data to identify factors associated with fraudulent financial reporting. Journal of Applied Business Research (JABR), 11(3), 38-46.[18]. Summers, S. L., & Sweeney, J. T. (1998). Fraudulently misstated financial statements and insider trading: An empirical analysis. Accounting Review, 131-146.[19]. Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary accounting research, 13(1), 1-36.[20]. Loebbecke, J. K., Eining, M. M., & Willingham, J. J. (1989). Auditors experience with material irregularities – Frequency, nature, and detectability. Auditing – A journal of practice and Theory, 9(1), 1-28. [21]. Abbott, L. J., Park, Y., & Parker, S. (2000). The effects of audit committee activity and independence on corporate fraud. Managerial Finance, 26(11), 55-68.[22]. Farber, D. B. (2005). Restoring trust after fraud: Does corporate governance matter?. The Accounting Review, 80(2), 539-561.[23]. Stice, J. D. (1991). Using financial and market information to identify pre-engagement factors associated with lawsuits against auditors. Accounting Review, 516-533.[24]. Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (1999). COSO's new fraud study: What it means for CPAs. Journal of Accountancy, 187(5), 12.[25]. Neter, J., Wasserman, W., & Kutner, M. H. (1990). Applied statistical models.Richard D. Irwin, Inc., Burr Ridge, IL.[26]. Gujarati, D. N. (2009). Basic econometrics. Tata McGraw-Hill Education.[27]. McFadden, D. (1974). Conditional Logit Analysis of Qualita-tive Choice Behavior," in Frontiers in Econometrics, P. Zarenm-bka, ed. New York: Academic Press, 105-42.(1989). A Method of Simulated Moments for Estimation of Discrete Response Models Without Numerical Integration," Econometrica, 54(3), 1027-1058.[28]. DA Cohen, ADey, TZ Lys. (2008), “Accrual-Based Earnings Management in the Pre-and Post-Sarbanes-Oxley Periods”. The accounting review.

The Influence of Potentially Fraudulent Reports on Audit Risk Assessment and Planning

2001 ◽  
Vol 76 (1) ◽  
pp. 59-80 ◽  
Author(s):  
D. Paul Newman ◽  
Evelyn Patterson ◽  
Reed Smith
Keyword(s):  
Financial Reporting ◽  
Planning Process ◽  
Dynamic Interaction ◽  
Fraudulent Financial Reporting ◽  
Expected Payoff ◽  
Audit Risk ◽  
Audit Planning ◽  
Inherent Risk ◽  
Risk Detection ◽  
Reported Earnings

We consider how auditors assess the risk of fraudulent financial reporting and plan their audit where a possibly fraudulent auditee anticipates the assessment and planning process. The auditor uses the auditee's (possibly fraudulent) earnings report to revise his beliefs about the likelihood of fraud when formulating an audit plan. We find that as underlying earnings increase, a fraudulent auditee increases reported earnings. In turn, as the auditee's reported earnings increase, the auditor increases audit effort. We also find that the auditee (who knows the auditor will use the report for audit planning) selects reports that increase his own expected payoff, relative to reports he would select if the auditor did not observe the report before finalizing the audit plan. By contrast, the auditor is no better off using the auditee's report for audit planning. Inherent risk, detection risk, and overall audit risk can increase when the auditor uses the auditee's report. Thus, because of the dynamic interaction between the auditor and auditee, procedures that aid in assessing audit risk may not reduce that risk or result in more efficient audits.

They Protect Us from Computer Fraud: Who Protects Us from Them? SafeNet, Inc.: A Case of Fraudulent Financial Reporting

2015 ◽  
Vol 30 (4) ◽  
pp. 353-372 ◽  
Author(s):  
Leisa L. Marshall ◽  
James Cali
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Stock Options ◽  
Governance Structure ◽  
Fraud Triangle ◽  
Fraudulent Financial Reporting ◽  
Corporate Governance Structure ◽  
Chief Operating Officer ◽  
Tone At The Top ◽  
Prevention Methods

ABSTRACT This case focuses on fraudulent financial reporting as related to the tone at the top, primarily the chief operating officer, Carole Argo, of SafeNet, Inc. (SafeNet). This case provides students a real-world example by which to apply basic fraud concepts including the fraud triangle, fraud prevention, and red flags (fraud symptoms). Students analyze SafeNet to identify deficiencies and prevention methods, from the perspective of COSO's (2013) Internal Control—Integrated Framework's internal control objectives, components, and principles. Students also analyze SafeNet's corporate governance structure by comparing SafeNet's Board of Directors and its subcommittees pre- and post-SOX. Students learn of stock options as a form of compensation. However, this case does not focus on the details of accounting for stock options. This case is appropriate for students with the financial accounting principles course background. This case was classroom tested in a basic fraud examination course and an internal auditing course. Students' responses in both courses support the use of the case as a learning tool.

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