scholarly journals PREDICTING BANKRUPTCY OF THE ENTERPRISE AND FINSIM-PRO2018 SIMULATION MODEL IN THE STUDY PROCESS

2018 ◽  
pp. 199-205
Author(s):  
TEA MUNJISHVILI
Keyword(s):  
Simulation Model ◽  
Financial Reporting ◽  
Financial Stability ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Sustainability ◽  
Economic Process ◽  
Study Process

Financial Statement of the Organization for Financial Reporting Analysis The main objective of any economic process, including financial analysis, is the first: to identify the reasons for the financial stability of the organization and to set the measurements to eliminate them; Second, in case of maintaining existing tendencies of the enterprise, the prediction about the expected results; On the basis of modeling, find ways and means of ensuring financial sustainability. The article describes the FINSIM_PRO2018 simulator created by our financial statements.

scholarly journals Pelatihan Pembuatan Laporan Keuangan Bagi UMKM Sebagai Informasi Untuk Pengambilan Keputusan

2018 ◽  
Vol 2 (1) ◽  
pp. 63-82
Author(s):  
Sila Ninin Wisnantiasri ◽  
Irma Paramita Sofia ◽  
Fitriyah Nurhidayah ◽  
Karsam Sunaryo
Keyword(s):  
Financial Reporting ◽  
Business Performance ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Educational Game ◽  
Financial Report ◽  
Study Approach ◽  
Income Statement ◽  
The Impact

The purpose of this dedication for Pisangan Village Community through financial statement training for small business in collaboration with partners of Citra Kencana Community is to improve the understanding of partners in making financial report especially income statement. The problem facing partners is not mastering how to create a correct financial statement. The financial statements can be used by partners as a benchmark of business performance and business financial analysis tools. Therefore, the methods used in this activity are: (1) convey material about basic concepts of accounting, (2) convey material about components of income statement, (3) provide business simulation and recording financial statements through educational game business accounting (4) the practice of preparing the business income statement and analysis by the entrepreneur, (5) advising / consulting the profit-loss statement. Besides, regression test is done through event study approach to know the impact of training for knowledge of financial report objectives and understanding of financial reporting from the community after getting the training. The result of this activity is increasing both knowledge and understanding of society in making financial report. This is shown by the direction of a positive and significant relationship between training with community knowledge and understanding. Keywords: Financial statement, Small entrepreneurship, Business analysis

scholarly journals Pengaruh Stabilitas Keuangan, Kondisi Industri dan Tekanan Eksternal Terhadap Kecurangan Laporan Keuangan

2018 ◽  
Vol 2 (1) ◽  
pp. 82
Author(s):  
Didin Ijudien
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Financial Statements ◽  
Industrial Sector ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Purposive Sampling ◽  
Normality Test ◽  
Research Show

AbstractThe Financial Statement Fraud is an intentional mistakes aimed to deceive the users of the financial statements is ultimately detrimental to the users of the financial statements themselves. This research aims to analyze the influence of Financial Stability, Nature Of Industry and External Presure partially against the The Financial Statement Fraud on the company's industrial sector manufacturing consumer goods listed on the Indonesia stock exchange for the period 2013 up to 2016. The selection of the sample in this research was done using a purposive sampling method and retrieved 104 corporate data as sample. The data used are of financial reporting data auditan from the company published through the site www.idx.co.id and the official website of each company. Data analysis method used in this research is by using multiple linear regression. Before using regression analysis, then performed a classic assumption test first, which includes a test of normality, test multikolonieritas, autocorrelation test, and test heteroskedastisitas. Testing in this study performed using SPSS software version 23 for windows. The results of this research show that partially Financial Stability, Nature Of Industry and External Presure have no effect against the Financial Statement Fraud. Keyword: Financial Stability, Nature Of Industry, External Presure and the Financial Statement Fraud.AbstrakKecurangan laporan keuangan merupakan suatu kesalahan yang disengaja bertujuan untuk menipu para pengguna laporan keuangan yang pada akhirnya merugikan penguna laporan keuangan itu sendiri. Penelitian ini bertujuan untuk menganalisis pengaruh stabilitas keuangan, kondisi industri, dan tekanan eksternal secara parsial terhadap kecurangan laporan keuangan pada perusahaan manufaktur sektor industri barang konsumsi yang terdaftar di Bursa Efek Indonesia untuk periode 2013 sampai dengan 2016. Pemilihan sampel pada penelitian ini dilakukan dengan menggunakan metode purposive sampling dan diperoleh 104 data perusahaan sebagai sampel. Data yang digunakan adalah data laporan keuangan auditan dari perusahaan yang dipublikasikan melalui situs www.idx.co.id dan website resmi masing-masing perusahaan. Metode analisis data yang digunakan pada penelitian ini adalah dengan menggunakan regresi linear berganda. Sebelum menggunakan analisis regresi, maka dilakukan uji asumsi klasik terlebih dahulu, yang meliputi uji normalitas, uji multikolonieritas, uji autokorelasi, dan uji heteroskedastisitas. Pengujian dalam penelitian ini dilakukan dengan menggunakan software SPSS versi 23 for windows. Hasil penelitian ini menunjukkan bahwa secara parsial stabilitas keuangan, kondisi industri, dan tekanan eksternal tidak berpengaruh terhadap kecurangan laporan keuangan. Kata Kunci: Stabilitas keuangan, kondisi industri, tekanan eksternal, dan kecurangan laporan keuangan

scholarly journals Assessment of financial stability and payment capacity of Russian companies

2021 ◽  
Vol 12 (2) ◽  
pp. 92-100
Author(s):  
Nikolay M. Tyukavkin ◽  
Vasilisa S. Vasilenko
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Financial Stability ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Automatic Generation ◽  
Financial Flows ◽  
Complex Concept ◽  
Software Products

The article discusses the concepts of financial stability, solvency, solvency ratios, financial reporting, financial analysis, liquidity indicators, solvency indicators, balance sheet, report on financial results, considers the advantages of implementing software products for the automatic generation of financial indicators based on financial statements. Financial management is becoming a time-consuming and priority task facing the management personnel of any modern enterprise, regardless of its field of activity. The financial stability of an enterprise is a complex concept that reflects a financial condition in which the enterprise is able to freely dispose of funds, balance financial flows, carry out effective activities in conditions of entrepreneurial risk and a dynamically changing environment, while maintaining solvency, having investment potential and a number of competitive advantages. The system of indicators characterizing the solvency and financial stability of the enterprise is the most important aspect, therefore, this article also discusses the indicators of financial stability, solvency, their calculation procedure, as well as the size and results. Methods for assessing the information contained in the financial statements are determined, examples of calculating the liquidity and solvency ratios of enterprises are given. The ways of increasing the financial stability and solvency of companies are described and considered.

Reporting Earnings at Summer Technology—A Capstone Case Involving Intermediate Accounting Topics

2005 ◽  
Vol 20 (2) ◽  
pp. 195-212 ◽  
Author(s):  
Mark Kohlbeck
Keyword(s):  
Financial Reporting ◽  
Ethical Issues ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Earnings Forecast ◽  
Business Decisions ◽  
Reporting Decisions ◽  
Annual Earnings ◽  
Reported Earnings

Summer Technology, Inc. (the Company) is a fast-growing high-technology firm and is facing many pressures, including those related to financial reporting. Financial analysts, however, are optimistic about the future of the Company. The firm is about to report its first annual profit, and the preliminary unreported results are just short of the analysts' consensus annual earnings forecast. This case requires financial analysis to evaluate a number of judgments involved in preparing financial statements and to prepare a recommendation to management with respect to reported earnings per share. The case's learning objectives are: (1) to increase understanding and exposure to the integration of financial reporting decisions with financial statement analysis, (2) to help students understand how business decisions impact reporting, (3) to demonstrate how decisions may be influenced by pressures to manage earnings and produce desirable financial results, and (4) to raise ethical issues in an accounting setting.

scholarly journals The Effect of Fraud Pentagon on Fraudulent Financial Statement of Banking in Indonesia

2021 ◽  
Vol 11 (2) ◽  
pp. 189-206
Author(s):  
Mega Arisia Dewi
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Financial Statements ◽  
External Pressure ◽  
Financial Statement ◽  
Fraudulent Financial Reporting ◽  
Financial Reports ◽  
The Public ◽  
Company Directors ◽  
Fraudulent Financial Statements

This study aims to determine the effect of financial targets, financial stability, external pressure, effective monitoring, nature of industry, change in auditors, rationalization, change of company directors, CEO’s Picture on fraudulent banking financial statements in Indonesia for 2014-2019. This study uses the dependent variable, namely fraudulent financial reporting, while the independent variables are financial targets, financial stability, external pressure, effective monitoring, nature of industry, change in auditors, rationalization, competence and arrogance. The show that the variable financial targets, change in auditors, change of directors and CEO’s picture have no effect on the detection of fraudulent financial statements. Meanwhile, financial stability, external pressure, ineffective monitoring, nature of industry, and rationalization have an effect on the detection of fraud in financial reports for 2014-2019. The results of this study provide an understanding for the public and the general public that the government’s efforts so far have always played a major role in maintaining the condition of the Indonesian economy in order to avoid attempts to cheat financial statements.

Analyzing the accuracy of bank reliability assessment based on official reporting

2020 ◽  
Vol 26 (2) ◽  
pp. 327-348
Author(s):  
O.I. Razumova
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Systems Approach ◽  
Reliability Assessment ◽  
Financial Statements ◽  
Rating Agencies ◽  
Short Term Forecasting ◽  
One Year ◽  
Key Indicators ◽  
Correct Forecast

Subject. The article considers ratings of banks' reliability. Objectives. The aim is to evaluate the accuracy of existing methodology for bank reliability assessment based on official reporting, to identify patterns between indicators and factors that can affect the financial sustainability of a bank. Methods. The study draws on the comparative analysis of key indicators of bank's financial statements one year prior to the introduction of provisional administration, and evaluates the results of existing methods for analyzing the financial standing of banks. Results. The findings show that those methods that use only official reporting to assess the reliability of banks are not sufficient for short-term forecasting of financial stability. Ratings of the majority of agencies that rest on official reporting have a high percentage of erroneous results, therefore, rating agencies are not able to predict the regulator's decisions regarding a credit institution. Conclusions. Currently, there are no universal methods to determine reliability, which would provide a correct forecast of deteriorated financial position of the bank. It is important to use a systems approach, where financial reporting is not a key component.

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.

FRAUD TRIANGLE ANALYSES IN DETECTING FRAUDULENT FINANCIAL STATEMENT USING FRAUD SCORE MODEL

2020 ◽  
Vol 25 (1) ◽  
pp. 29-44
Author(s):  
Mariati ◽  
Emmy Indrayani
Keyword(s):  
Financial Stability ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Financial Condition ◽  
Score Model

Company’s financial condition reflected in the financial statements. However, there are many loopholes in the financial statements which can become a chance for the management and certain parties to commit fraud on the financial statements. This study aims to detect financial statement fraud as measured using fraud score model that occurred in issuers entered into the LQ-45 index in 2014-2016 with the use of six independent variables are financial stability, external pressure, financial target, nature of industry, ineffective monitoring and rationalization. This study using 27 emiten of LQ-45 index during 2014-2016. However, there are some data outlier that shall be removed, thus sample results obtained 66 data from 25 companies. Multiple linear regression analysis were used in this study. The results showed that the financial stability variables (SATA), nature of industry (RECEIVBLE), ineffective monitoring (IND) and rationalization (ITRENDLB) proved to be influential or have the capability to detect financial statement fraud. While the external pressure variables (DER) and financial target (ROA) are not able to detect the existence of financial statement fraud. Simultaneously all variables in this study were able to detect significantly financial statement fraud.

Does Auditor Explanatory Language in Unqualified Audit Reports Indicate Increased Financial Misstatement Risk?

2014 ◽  
Vol 89 (6) ◽  
pp. 2115-2149 ◽  
Author(s):  
Keith Czerney ◽  
Jaime J. Schmidt ◽  
Anne M. Thompson
Keyword(s):  
Financial Reporting ◽  
Reporting Quality ◽  
Positive Association ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Accounting Principles ◽  
Client Relationship ◽  
Financial Misstatement ◽  
Audit Reports

ABSTRACT According to auditing standards, explanatory language added at the auditor's discretion to unqualified audit reports should not indicate increased financial misstatement risk. However, an auditor is unlikely to add language that would strain the auditor-client relationship absent concerns about the client's financial statements. Using a sample of 30,825 financial statements issued with unqualified audit opinions during 2000–2009, we find that financial statements with audit reports containing explanatory language are significantly more likely to be subsequently restated than financial statements without such language. We find that this positive association is driven by language that references the division of responsibility for performance of the audit, adoption of new accounting principles, and previous restatements. In addition, we find that (1) “emphasis of matter” language that discusses mergers, related-party transactions, and management's use of estimates predicts restatements related to these matters, and that (2) the financial statement accounts noted in the explanatory language typically correspond to the accounts subsequently restated. In sum, our results suggest that present-day audit reports communicate some information about financial reporting quality.

Corporate Social Responsibility and Financial Reporting Quality:Evidence from Restatements

2020 ◽  
Author(s):  
Yi-Hung Lin ◽  
Hua-Wei (Solomon) Huang ◽  
Mark E. Riley ◽  
Chih-Chen Lee
Keyword(s):  
Financial Reporting ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Csr Reporting ◽  
Corporate Social ◽  
Reporting Environment ◽  
The Relationship

We find a negative relationship between aggregate CSR scores and the probability that firms restated financial statements over the period 1991-2012. We then break that period into three sub-periods in order to determine whether the relationship holds for all three sub-periods. During the sub-periods of 1991-2001 and 2002-2005, the negative CSR score - restatement probability relationship holds. The negative relationship disappears in the 2006-2012 sub-period. Additional analyses indicate CSR scores are significantly higher in the 2006-2012 sub-period, suggesting the disappearance of the relationship between aggregate CSR scores and financial statement quality may relate to changes in CSR assessments and the CSR reporting environment. Our findings update the literature linking CSR scores and financial reporting quality and identify the need for further research as to the reasons the link between these constructs disappeared.

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