scholarly journals Fraud Risk and Earnings Management

2019 ◽  
Vol 7 (1) ◽  
Author(s):  
Ni Nyoman Ayu Suryandari ◽  
Anik Yuesti ◽  
Suryawan Suryawan
Keyword(s):  
Earnings Management ◽  
Fraud Risk

Unmasking the Fraud at Toshiba

2019 ◽  
Vol 34 (3) ◽  
pp. 41-57 ◽  
Author(s):  
Dennis H. Caplan ◽  
Saurav K. Dutta ◽  
David J. Marcinko
Keyword(s):  
Earnings Management ◽  
Corporate Culture ◽  
Audit Risk ◽  
Fraud Risk ◽  
Electric Company ◽  
Capstone Courses ◽  
Auditing Standards ◽  
Accounting Estimates ◽  
Westinghouse Electric

ABSTRACT Following its purchase of Westinghouse Electric Company and subsequent macroeconomic events, Toshiba faced declining profits. In response, Toshiba engaged in earnings management through two accounting treatments. First, it delayed the recognition of losses under long-term contracts. Second, it inappropriately applied price masking to account for transfers of components between itself and contract manufacturers. Students using this case will assess how business risks and corporate culture relate to audit risk, and how accounting for price-masking transactions can lead to increased fraud risk. Students will also research aspects of auditing standards related to fraud and accounting estimates. The case is designed for auditing courses and capstone courses with an auditing component.

scholarly journals FRAUD DIAMOND DALAM FINANCIAL STATEMENT FRAUDFRAUD DIAMOND DALAM FINANCIAL STATEMENT FRAUD

2016 ◽  
Vol 4 (2) ◽  
pp. 98
Author(s):  
Faiz Rahman Siddiq ◽  
Sofyan Hadinata
Keyword(s):  
Risk Factors ◽  
Earnings Management ◽  
Financial Statements ◽  
Financial Statement ◽  
Earnings Manipulation ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Fraud Risk ◽  
Fraud Theory ◽  
Triangle Theory

The financial statements will become more qualified in the<br />presentation if the presentation is based on qualitative<br />elements, among others: easy to understand, reliable,<br />comparable (comparable), and relevant. The financial<br />statements are presented to stakeholders, namely:<br />management, employees, investors (shareholders), creditors,<br />suppliers, customers, and government. Fraudulent financial<br />reporting was a deliberate attempt by the company to deceive<br />and mislead the users of financial statements, especially<br />investors and creditors, to present and manipulate the material<br />value of the financial statements. Manipulation gain profit<br />(earnings manipulation) for the company's desire that the stock<br />remains attractive to investors. Fraud triangle theory expressed<br />by Cressey later developed by Wolfe and Hermanson (2009)<br />with theory. Fraud diamond diamond fraud theory consisted of<br />four fraud risk factors are pressure, opportunity, rationalization<br />and capability. Diamond fraud theory can be used in predicting<br />fraud in proksikan with earnings management.

Pengaruh Hubungan Politik Terhadap Manajemen Laba Pada Perusahaan Sektor Jasa Dengan Variabel Kontrol Ukuran Perusahaan Dan Kualitas Audit

2018 ◽  
Vol 16 (2) ◽  
pp. 30
Author(s):  
Dwikky Darmawan ◽  
Weny Putri
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Significant Influence ◽  
Service Sector ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Political Connection ◽  
Discretionary Accrual

The purpose of this study is to determine the effects of political connection toward the earnings management of service sector companies with control variables firm size and audit quality. Firm�s political connection measured by using dummy variable. Earnings management is proxied by discretionary accrual which is measured by using Modified Jones Model. The research data applied in this study are the secondary data which are taken from the annual reports of service sector companies that listed in Indonesian Stock Exchange of 2016-2017 periods. There are 330 observations fit as sample, which are taken by using purposive sampling method. Data are processed by applying the multiple linear regression test. The result show that the political connection had positive but not significant influence to earnings management. Firm size had negative but not significant influence to earnings management. Whereas the audit quality had a negative and significant influence to earnings management.

The relation between R&D accounting treatment and the risk of the firm: Evidence from the Italian market

2014 ◽  
pp. 33-54 ◽  
Author(s):  
Riccardo Cimini ◽  
Alessandro Gaetano ◽  
Alessandra Pagani
Keyword(s):  
Earnings Management ◽  
Fiscal Year ◽  
Investment Strategies ◽  
Capital Assets ◽  
Italian Market ◽  
D Investment ◽  
Firm Evidence

In this paper, we investigate the relation between the different accounting treatments of R&D expenditures and the risk of the entity in order to identify under which treatment insiders are more likely to carry out earnings management. By analysing the R&D investment strategies of a sample of 137 listed Italian entities that complied with the requirements of IAS 38 during fiscal year 2009, following Lantz and Sahut (2005), we calculate several indexes that show the preferences of insiders to account R&D expenditures as costs or capital assets, and we study the relation of such preferences with the risk of the entity, which we measure with the unlevered beta. We hypothesize that the entities, which considered the R&D investments as costs, are the riskiest ones due to the higher probability that insiders carried out earnings management. Our results confirm such hypothesis. This paper could have implications for academics and standard setters that could learn that behind accounting discretion, insiders could opportunistically behave against outsiders.

A Study on the Earnings Management to Avoid Earnings Decreases of Public Institution

2016 ◽  
Vol 14 (1) ◽  
pp. 1-30
Author(s):  
Byoung Uk Keum ◽  
◽  
Doo Cheol Moon
Keyword(s):  
Earnings Management ◽  
Public Institution

Earnings Management during Turnaround: The Case of Innovation Engineering Co.

2017 ◽  
Vol 26 (6) ◽  
pp. 237-277
Author(s):  
Wonsuk Ha ◽  
Bum Joon Kim ◽  
Heyjin Ahn ◽  
Su-Keun Kwak
Keyword(s):  
Earnings Management

Business Strategy and Earnings Management

2017 ◽  
Vol 42 (1) ◽  
pp. 1-62
Author(s):  
Gyu Dam Choi ◽  
Kap Soon Kim ◽  
Hyun Soo Ryu
Keyword(s):  
Earnings Management ◽  
Business Strategy
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