Effective Use of Integrated Decision Making: An Advanced Technology Model for Evaluating Fraud in Service-Based Computer and Technology Firms

2007 ◽  
Vol 4 (1) ◽  
pp. 123-137 ◽  
Author(s):  
Mary Jane Lenard ◽  
Ann L. Watkins ◽  
Pervaiz Alam
Keyword(s):  
Financial Reporting ◽  
Private Information ◽  
Manufacturing Industries ◽  
Advanced Technology ◽  
Nonfinancial Information ◽  
Technology Firms ◽  
Integrated Decision Making ◽  
Percent Accuracy ◽  
Effective Use ◽  
Available Information

Most fraud-detection models developed to date require the use of private information and focus on companies primarily in retail and manufacturing industries. In the wake of recent corporate failures, a broad spectrum of interested parties now uses publicly available information to monitor their investments. The central issue we raise in this paper is the ability of external parties to detect financial reporting fraud in service-based computer and technology organizations by using publicly available information. Utilizing both financial and nonfinancial information, we develop a model that employs logical reasoning through the use of Excel® and fuzzy logic. We predict fraud in these firms with 76.7 percent accuracy.

Analytical Study on Privacy Attack Models in Privacy Preserving Data Publishing

2019 ◽  
pp. 1518-1538
Author(s):  
Sowmyarani C. N. ◽  
Dayananda P.
Keyword(s):  
Private Information ◽  
Background Knowledge ◽  
Privacy Preserving ◽  
Data Publishing ◽  
Background Information ◽  
Published Data ◽  
Privacy Attack ◽  
Privacy Preserving Data Publishing ◽  
Available Information ◽  
Attack Models

Privacy attack on individual records has great concern in privacy preserving data publishing. When an intruder who is interested to know the private information of particular person of his interest, will acquire background knowledge about the person. This background knowledge may be gained though publicly available information such as Voter's id or through social networks. Combining this background information with published data; intruder may get the private information causing a privacy attack of that person. There are many privacy attack models. Most popular attack models are discussed in this chapter. The study of these attack models plays a significant role towards the invention of robust Privacy preserving models.

Analysis of Thermal Performance of Energy Storage System

2016 ◽  
Vol 824 ◽  
pp. 371-378
Author(s):  
Martina Jurigova ◽  
Maria Minarova ◽  
Ivan Chmúrny
Keyword(s):  
Energy Storage ◽  
Thermal Energy ◽  
Storage System ◽  
Energy System ◽  
Energy Storage System ◽  
Advanced Technology ◽  
Winter Period ◽  
Concrete Tank ◽  
Effective Use

Thermal energy is necessary of many reasons. The most basic and most obvious includes food preparation and delivery of heat. Thermal energy storage is actually a temporary storage at high temperatures, respectively at low temperatures. It is an advanced technology, which can reduce environmental impact and it can facilitate more efficient and cleaner energy system. Nowadays, these systems have ability to retain thermal energy for a period of three months or more. The aim of design of these systems is to keep the thermal energy in summer period and to use it for heating in winter period. The role of such storage systems is to accumulate the heat, to balance temperature differences and to achieve the most effective use of the collected energy. This paper is focused on thermal analysis of system, which contains concrete tank. It is a system with water as a storage medium and the cooling of the water was monitored for 30 days.

Financial Reporting Quality, Investment Horizon, and Institutional Investor Trading Strategies

2018 ◽  
Vol 94 (3) ◽  
pp. 87-112 ◽  
Author(s):  
Brian J. Bushee ◽  
Theodore H. Goodman ◽  
Shyam V. Sunder
Keyword(s):  
Financial Reporting ◽  
Private Information ◽  
Reporting Quality ◽  
Trading Strategies ◽  
Financial Reporting Quality ◽  
Investment Horizon ◽  
Investment Strategies ◽  
Holding Costs ◽  
Value Stocks ◽  
Fundamental Value

ABSTRACT This paper provides evidence that financial reporting quality (FRQ) influences the holding costs of trading strategies. While prior research has focused on the benefits of investment strategies based on poor FRQ (i.e., larger returns due to a greater amount of private information), we examine whether poor FRQ imposes greater holding costs on certain trading strategies. We show that poor FRQ motivates sophisticated investors with short-term horizons to tilt their portfolios away from value stocks, whose returns are contingent on investors revising their beliefs about firm fundamental value, and toward past winner stocks, whose future returns are realized more quickly. Poor FRQ also increases the length of time that institutions maintain large positions in value stocks. Our results imply that mis-valuations can be persistent when arbitrageurs perceive high holding costs from poor financial quality, even when they can see through the opaque financial disclosures.

Timing of auditor terminations and client firm risk

2019 ◽  
Vol 34 (6) ◽  
pp. 650-672
Author(s):  
Young-Won Her ◽  
Jennifer Howard ◽  
Myungsoo Son
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Quality ◽  
Operating Performance ◽  
Firm Risk ◽  
Content Type ◽  
Auditor Resignation ◽  
Client Firm ◽  
Auditor Switches ◽  
Available Information

Purpose The purpose of this study is to examine whether the timing of auditor terminations signals the riskiness of client firms. Design/methodology/approach This empirical study uses a sample of auditor switches during 2003-2014 to conduct univariate tests and multivariate regression analyses. Auditor switches occurring after the audit report date but before the shareholders’ meeting are classified as “planned” terminations and auditor switches that occur outside of this window are classified as “abrupt” terminations. Findings First, abrupt terminations are more strongly related to client risk factors than planned terminations. Second, relative to planned terminations, abrupt terminations are more likely to result from an auditor resignation rather than a client dismissal. Third, abrupt termination firms are more likely to have internal control weaknesses and experience delistings in the following year. Future operating performance is also worse after an abrupt termination. Finally, auditors and investors view abrupt terminations as riskier than planned terminations. Practical implications As the timing of the auditor termination is publicly available information, it can provide an important signal of deteriorating financial performance to shareholders and potential investors. Abrupt terminations could be costly to shareholders because those firms likely have lower quality financial reporting (due to internal control weakness) and deterioration of future operating performance. Originality/value While concurrent studies investigate the relation between the timing of new auditor appointment and audit quality, this is the first study to document the relation between the timing of auditor termination and the riskiness of client firms.

scholarly journals Users’ Perceptions on Internet Financial Reporting

Organizacija ◽  
2014 ◽  
Vol 47 (4) ◽  
pp. 254-266 ◽  
Author(s):  
Tatjana Dolinšek ◽  
Polona Tominc ◽  
Andreja Lutar Skerbinjek
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Information ◽  
Actual Situation ◽  
Financial Status ◽  
Reporting Practices ◽  
Available Information ◽  
A Company

Abstract Background and Purpose: The objective of this research was to explore the perceptions of the users regarding Internet financial reporting practices in Slovenia. With this research, we wanted to determine what the perceptions of the users are regarding the reliability, credibility, usefulness and sufficiency of online accounting information and how their expectations regarding the content of accounting information differ from the actual situation. Design/ Methodology/ Approach: This research has two parts: in the first part, we summarised the actual situation regarding publishing of internet financial reporting on a sample of large companies in Slovenia (n=110) while, in the second part, we conducted a survey with which we assessed the expectations of users as regards of accounting information (n=127). We then compared users’ expectations with the actual situation, analysed by evaluation of 110 websites of Slovene companies. Results: In the research we found that 52.6% of companies publish their accounting information on their websites and that on average 40.2% of users actually make use of this information We found that users have evaluated all four of characteristics: reliability, credibility, usefulness and sufficiency above average, whereby they evaluated usefulness with the highest grade and sufficiency with the lowest. Conclusion: The results of this research can offer companies a feedback on users’ expectations, particularly in cases where these expectations are greater than the actual situation. We have determined that users generally want information that indicates the financial status of a company (such as the Rating Report and data on the company’s liquidity), as these information are currently expected by users but available information do not meet their need in full.

Manipulating a synchronous or separatist group orientation to improve performance on a hidden profile task

2016 ◽  
Vol 21 (1) ◽  
pp. 57-72 ◽  
Author(s):  
Miranda R. Kolb ◽  
Lyn M. van Swol
Keyword(s):  
Value Similarity ◽  
Group Orientation ◽  
Minority Member ◽  
Or Groups ◽  
Shared Information ◽  
Group Members ◽  
Hidden Profile ◽  
Effective Use ◽  
Available Information ◽  
Selection Of

Effective use of available information is a problem that plagues group decision-making tasks. Groups heavily favor shared information, or information that is known to all group members, which can lead to incorrect decisions and selection of inferior alternatives. However, groups may be less prone to overlooking unshared information if they are focused to value uniqueness and novel input from group members. The present research demonstrates that groups that value uniqueness, or a separatist orientation, correctly solved a hidden profile task more often than groups with a synchronous orientation, or groups that value similarity. Separatist groups repeated more unshared information than synchronous overall. Separatists also repeated more shared information than synchronous groups. Further, groups with a correct minority member also repeated more unshared information than groups with either a majority correct or no correct members. Results are discussed in terms of group focus and biases that affect the discussion of information.

scholarly journals Fraud Risk Management from the Perspective of CFEBT Risk Triangle of Accounting Errors and Frauds

2018 ◽  
Vol 66 (5) ◽  
pp. 1261-1266
Author(s):  
Zita Drábková
Keyword(s):  
Financial Reporting ◽  
Present Contribution ◽  
Financial Reporting Standards ◽  
Fraud Risk ◽  
Accounting Unit ◽  
Fraud Risk Management ◽  
Available Information ◽  
The Impact ◽  
Accounting Errors

The objective of the present contribution is to evaluate the risk of the impact of accounting errors and frauds on reported accounting records on the basis of the CFEBT risk triangle of accounting errors and frauds. The analysis is conducted in the framework of a case study that examines a selected accounting unit predominantly operating in trade, with respect to financial statements reported during the years 2011–2015. The evaluation of the risk of impacts of accounting errors and frauds forms a part of one of the three vertices of the CFEBT risk triangle. The contribution presents results of the CFEBT approach at three levels of the M‑score and analyses significant discrepancies between the generation of earnings and increase in cash flow during the observed periods. The CFEBT risk triangle was designed as a tool for detection, evaluation and management of the risk of accounting errors and frauds in circumstances of the Czech accounting standards and International Financial Reporting Standards (IFRS). The essential aim of the triangle is to reduce information asymmetry between authors and users of accounting records, or, in other words, to increase the quality of available information with respect to decision‑making on the basis of available accounting information.

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