scholarly journals Determining the Inherent Risks of Cryptocurrency: A Survey Analysis

2021 ◽  
Author(s):  
Steven A. Harrast ◽  
Debra Mcgilsky ◽  
Yan Sun
Keyword(s):  
Financial Statements ◽  
Risk Assessments ◽  
Survey Analysis ◽  
Private Key ◽  
Inherent Risk ◽  
Accounting Professionals ◽  
Risk Judgments ◽  
A Company ◽  
Exchange Level

Cryptocurrencies pose several risks that impact the inherent risk assessments of auditors. The SEC has issued warnings about the risks (Clayton 2017), and the PCAOB lists virtual assets as a key focus area in future inspections (Vincent and Wilkins 2020). This study examines how accounting professionals perceive the inherent risks associated with cryptocurrency based on their likelihood of occurrence and expected impact on financial statements. We find the risk of determining cryptocurrency value is perceived as having the highest likelihood of occurrence, and unauthorized private key access has the highest impact. Combining the evaluations of likelihood and impact, we rank the risk of ineffective exchange-level controls as having the highest inherent risk. We also find that inherent risk judgments are negatively correlated with cryptocurrency experience. Professionals with prior cryptocurrency experience, or who work for a company planning to process cryptocurrency transactions, rate inherent risk lower than those with less experience.

scholarly journals The Effects of Clawbacks on Auditors' Propensity to Propose Restatements and Risk Assessments

2019 ◽  
Vol 13 (2) ◽  
pp. P12-P20 ◽  
Author(s):  
William D. Brink ◽  
Jonathan H. Grenier ◽  
Jonathan S. Pyzoha ◽  
Andrew Reffett ◽  
Natalie Zielinski
Keyword(s):  
Unethical Behavior ◽  
Financial Statements ◽  
Interview Data ◽  
Risk Assessments ◽  
Incentive Compensation ◽  
Future Research ◽  
Sarbanes Oxley ◽  
A Company

SUMMARY The Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010 include clawback provisions requiring executives to pay back incentive-based compensation that they earned based on financial statements that are subsequently restated. These provisions intend to reduce unethical behavior, as executives may be less likely to manipulate the financial statements to increase incentive compensation. However, prior research finds that at times executives are less willing to restate financial statements when a company has adopted a clawback (Pyzoha 2015). Relatedly, this paper summarizes the results of a recent study (Brink, Grenier, Pyzoha, and Reffett 2018) that investigates whether auditors might be less likely to propose restatements in the presence of a clawback. Contrary to expectations, results of three experiments, paired with survey and interview data, indicate the presence of a clawback has no effect on auditors' propensity to propose restatements. We discuss implications for practice and provide suggestions for future research.

SEC Market Risk Disclosures: Implications for Judgment and Decision Making

2001 ◽  
Vol 15 (1) ◽  
pp. 49-70 ◽  
Author(s):  
Leslie Hodder ◽  
Lisa Koonce ◽  
Mary Lea McAnally
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Financial Statements ◽  
Market Risk ◽  
Quantitative Information ◽  
Judgment And Decision Making ◽  
Risk Assessments ◽  
Market Risk Disclosures ◽  
Risk Judgments ◽  
Risk Disclosures

In this paper, we draw on judgment and decision-making research to examine the behavioral implications of the SEC's Financial Reporting Release No. 48 on market risk disclosures. While these disclosures have been examined using archival data, no research has investigated how these disclosures might affect individual users of financial statements. The purpose of our paper is to draw on research in the judgment and decision-making arena to identify and analyze the behavioral implications of the new risk disclosures. We offer three conclusions. First, FRR No. 48 users may have more complex evaluations of risk than perhaps anticipated by the SEC. Second, the flexibility accorded firms in FRR No. 48 will adversely affect users' risk judgments. Third, because the Release does not require disclosure of certain quantitative information that is important to risk assessments, inappropriate risk assessments may result. We believe our insights can help others conduct research in this important area and can help the SEC when they revisit the disclosure requirements in FRR No. 48.

ANALISIS PREDIKSI POTENSI KEBANGKRUTAN PADA PT BANK MUAMALAT INDONESIA Tbk PERIODE 2012-2016 DENGAN MENGGUNAKAN METODE ALTMAN MODIFIKASI

2017 ◽  
Vol 5 (2) ◽  
pp. 287-324
Author(s):  
Dewi Laela Hilyatin
Keyword(s):  
Financial Performance ◽  
Financial Structure ◽  
Financial Statements ◽  
Financial Ratios ◽  
Z Score ◽  
Altman Analysis ◽  
Gray Area ◽  
Modification Method ◽  
A Company

Abstract Bankruptcy is a very essential issue that every company should be aware of. Bankruptcy of a company can be minimized by advanced prediction; such as analyzing the financial statements. This study discusses the financial performance of PT Bank Muamalat Indonesia Tbk, which indicates that there is a degression in some number of financial ratios, the closing of offices and firing of employees in 2012-2016, causing he fact that BMI must pay attention and improve its financial performance and anticipate the existence of a bankruptcy in the company. Based on Altman analysis modification for financial performance of PT Bank Muamalat Indonesia Tbk in 2012-2016, it found Z-Score value of 0,825, 0,659, 1,243, 0,982 and 0,892. Based on Z-Score criteria, PT Bank Muamalat Indonesia Tbk is predicted to experience problems in management and financial structure and also in potentially bankruptcy due to Z-Score value <1,1 while the highest Z-Score value is in 2014, which shows the value of Z-Score>1,1 and <2,6, which means the company is in the gray area, meaning the company’s category is not said to be bankrupt and also not healthy. Keywords: Bankruptcy, Altman Modification Method

PENGARUH CAR, LDR DAN ROA TERHADAP LABA PERUSAHAAN PERBANKAN TERDAFTAR DI BURSA EFEK INDONESIA

2018 ◽  
Vol 23 (1) ◽  
pp. 72-85
Author(s):  
Lasminisih ◽  
Emmy Indrayani
Keyword(s):  
Decision Making ◽  
Multiple Regression ◽  
Stock Exchange ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Financial Statement ◽  
Return On Assets ◽  
Capital Adequacy Ratio ◽  
A Company ◽  
Future Plans

Company financial statement can be used to monitor the performance of a company. Financial statements are also used as a means for decision making so that the company can anticipate future plans. The purpose of this study was to find out the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Return on Assets (ROA) on profit changes percentage of Banking Companies. The number of sample companies used in this study was 27 Banks listed in the Indonesia Stock Exchange with observation periods from 2007 to 2008. The method used in this study was multiple regression. The results of this study have indicated that CAR, LDR, and ROA gave significant effects on changes in Banks profit so that Banking Companies performances can be measured. Keywords: CAR, LDR, ROA, Profit

RASIO FUNDAMENTAL TERHADAP PERTUMBUHAN LABA: VARIABEL MODERASI UKURAN PERUSAHAAN (Fundamental ratio on income growth: Variables of company size moderation)

2021 ◽  
Vol 5 (1) ◽  
pp. 261
Author(s):  
Andri Gunawan Putra As'ari ◽  
Tri Kartika Pertiwi
Keyword(s):  
Financial Analysis ◽  
Stock Exchange ◽  
Research Result ◽  
Sampling Technique ◽  
Financial Statements ◽  
Company Size ◽  
Analysis Technique ◽  
Solvency Ratio ◽  
A Company ◽  
Profit Growth

To find out the performance of a company it is necessary to have a financial analysis, where in analyzing the financial statements will get a view of the good and bad financial performance. For this reason, this study aims to analyze the effect of the Liquidity Ratio, Solvency Ratio, Profitability Ratio, and Activity Ratio on profit growth with company size as a moderating variable. The population in this study was all trade retail companies that listed in Indonesia Stock Exchange in the period 2015-2018. The research samples was determined by using purposive sampling technique, so that obtained 21 trade retail companies that quality as the sample. The analysis technique used is moderation regression analysis. Based on the research result showed that Solvability, Profitability and Activity ratios has an effect on profit growth and company size is a moderation variabel. Liquidity Ratio has no effect on profit growth and company size not a moderating variable between Liquidity on profit growth.

scholarly journals An Examination of the Effects of Change in Committee Chair on Audit Quality

2017 ◽  
Vol 6 (4) ◽  
pp. 52
Author(s):  
Izhar Haq ◽  
Teresa Lang ◽  
Hongkang Xu
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Committee Chair ◽  
The Absolute ◽  
Predicted Values ◽  
The Relationship ◽  
A Company

This study uses GMI Ratings directorship data from 2008 to 2013 along with the associated financial data to examine the relationship between audit committee chair change with the absolute discretionary accruals in the financial statements of the reporting companies.  Our results suggest that audit committee chair change is positively associated with the absolute discretionary accruals.  Specifically, absolute discretionary accruals are significantly higher when there is a change in the audit committee chair.  These results are consistent with prior research that deviations from the predicted values of accruals is an indicator of “poor” audit quality.  An additional finding of this paper is that a person younger than 60 is more likely to be a new audit committee chair when there is a change and therefore will have less experience and contacts than the outgoing chair. An important implication of these results is that audit committee chair change can have a significant impact on the quality of the financial statements of a company as well as on the audit quality.

scholarly journals MONEY LAUNDERING RISK ASSESSMENT REGARDING THE ACCOUNTING PROFESSION

2021 ◽  
Author(s):  
Tajana Petrović ◽  
◽  
Sonja Cindori ◽  
Keyword(s):  
Money Laundering ◽  
National Level ◽  
Financial Statements ◽  
Risk Assessments ◽  
Legal Regulations ◽  
A Posteriori ◽  
Accounting Profession ◽  
Creative Accounting ◽  
The Republic ◽  
Illegal Activities

The assessment of money laundering and terrorist financing risks is conducted at the supranational and national level, including risk factors and risk variables. Based on the mentioned, the accounting profession is required to provide risk assessments at the level of obliged entities, which results in suspicious transactions reports. The number of suspicious transactions reported in the Republic of Croatia, as well in the world, is notably small, which speaks in favor of insufficient awareness of the threats posed by such conduct. The susceptibility of the accounting profession to illegal actions through the possibility of adjusting financial statements within the framework of creative accounting is evident, while due to non-compliance with legal regulations, unprofessionalism, and unethical needs, there is a need for forensic accounting. The peculiarities of the accounting profession support its ambiguous role in the detection of money laundering and other illegal activities, however, such measures are always implemented a posteriori.

scholarly journals Revenues from related parties: A risk factor in Italian listed company financial statements

2015 ◽  
Vol 13 (1) ◽  
pp. 254-265
Author(s):  
Fabrizio Bava ◽  
Melchiorre Gromis di Trana
Keyword(s):  
Risk Factor ◽  
Listed Company ◽  
Financial Statements ◽  
Related Party Transactions ◽  
Corporate Scandals ◽  
A Company

In recent decades, related party transactions (RPTs) have played a prime role in major corporate scandals, obliging regulators to strengthen the rules with new bans and expensive requirements on companies. This study aims to contribute to the literature on RPTs, providing evidence to justify increasingly expensive and mandatory regulation. Results show that the intensity of related party revenues increases where a company has lost profitability as well as turnover.

scholarly journals PROFITABILITAS PERUSAHAAN TERHADAP PRAKTIK PERATAAN LABA (INCOME SMOOTHING) PADA PERUSAHAAN MANUFAKTUR DI INDONESIA (Studi Empris pada Perusahaan Manufaktur yang Go Publik yang terdaftar di BEI periode 2013-2015)

JURNAL PUNDI ◽  
2017 ◽  
Vol 1 (2) ◽  
Author(s):  
Mike Kusuma Dewi
Keyword(s):  
Regression Analysis ◽  
Stock Exchange ◽  
Financial Statements ◽  
Income Smoothing ◽  
Economic Conditions ◽  
Earnings Information ◽  
Business Entities ◽  
A Company ◽  
Test Result ◽  
Valid Information

In earnings information companies can be used to assess the performance of management, and can also to estimate the risk in investing in a company. Investors often focus their attention on earnings information without seeing the procedures used to generate earnings information will encourage the company's management to take income smoothing action. Hopefully the information provided in the financial statements is valid information, relevant and reliable for users of financial statements. In reality there is no denying that there are still companies that indicate the practice of income smoothing.               The purpose of this study is to determine the effect of ROE and NPM on the practice of income smoothing on manufacturing entities that have Go Public listed on the Indonesia Stock Exchange This study used a sample of 35 business entities that have Go Public period           2013-2015. The research hypothesis used Multiple Regression Analysis using SPSS Ver.data processing tool 16. The test result showed that ROE and NPM there is no significant influence to earnings smoothing practice. And in fact until 2015 where the good economic conditions do not affect management to implement the practice of income smoothing. Key words : ROE, NPM, Income smoothing

scholarly journals IPTEKS LAPORAN KEUANGAN UNTUK MENILAI PROFITABILITAS DAN KINERJA PERUSAHAAN PT. ESTA GROUP JAYA

2018 ◽  
Vol 2 (02) ◽  
Author(s):  
Martino Sapetu ◽  
Wulan D Kindangen
Keyword(s):  
Economic Growth ◽  
Performance Analysis ◽  
Private Sector ◽  
Financial Statements ◽  
Private Company ◽  
Construction Company ◽  
A Company

PT. Esta Jaya Group is a private company located in Manad, with the construction company beingable to provide assistance in eradicating poverty and helping the goverments in terms of economic growth not only that but the linkages of the private sector that are able to prepare and also experts. In analyzing financial statements a company has things that must be considered in order to be a good and correct report so that it can be assessed. This can also be evidence of how far the company is able to create a profit and can be based into two categories, namely categories based on sales and based on investment. Keywords: accounting for financial statements, profitability, performance, analysis of financial statements, ratios

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