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.

scholarly journals Analisis Perbandingan Fraud Pentagon dengan Beneish Ratio dalam Pendeteksian Fraudulent Financial Reporting dengan Opini Audit sebagai Variabel Moderating

2021 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Aris Sanulika ◽  
Wahyu Nurul Hidayati
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Growth Index ◽  
Financial Statements ◽  
Fraudulent Financial Reporting ◽  
Gross Margin ◽  
Publicly Traded Companies ◽  
Asset Quality

ABSTRACTFraudulent Financial Reporting is a deliberate attempt by a company to deceive and mislead users of financial statements, especially investors and creditors, by presenting and manipulating the material value of financial statements. This study aims to determine how the auditor's opinion can moderate the comparative analysis of the pentagon fraud with the beneish ratio in the detection of fraudulent financial reporting. The type of data used in this study is comparative quantitative data. The data source in this study is secondary data. The population in this study are banking companies listed on the IDX. With a sample of 16 publicly traded companies engaged in financial and banking institutions and were listed on the Indonesia Stock Exchange in 2014-2017. The results of this study indicate that of 64 samples there were 12.5% which indicated that the financial statements had been manipulated. Auditor opinions can increase the influence of Financial Stability, external auditor quality, change in auditor, change of directors, days sales in receivables index, sales gross margin Index, Asset Quality Index, growth index, depreciation index, sales, and general administration expenses index, leverage index, total accrual to fraudulent financial reporting. Beneish Ratio affects Fraudulent Financial Reporting while Fraud Pentagon does not affect Fraudulent Financial Reporting

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.

The informational component of corporate social responsibility assessment: Results of empirical research

2021 ◽  
Vol 20 (11) ◽  
pp. 2089-2112
Author(s):  
Ol'ga V. EFIMOVA ◽  
Ol'ga V. ROZHNOVA
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Information Disclosure ◽  
Social Problems ◽  
Systems Approach ◽  
Social Information ◽  
Financial Statements ◽  
Corporate Social

Subject. We consider completeness and quality of social information disclosure for systematic presentation of corporate social responsibility of organizations in financial and public non-financial reporting. Objectives. The aim is to present a comprehensive research of information component of social responsibility of Russian large business enterprises, based on the analysis of their financial and non-financial reporting information. Methods. We employed methods of logical, statistical, comparative, and linguistic analysis. We also analyzed financial and public non-financial reports of Russian metallurgical companies. Special attention was paid to the availability and completeness of presented social disclosures. The study investigates annual financial statements and public non-financial statements for 2018–2020. Results. We offer a systems approach to the study and assessment of social responsibility, based on the analysis of the content of selected indicators, formulate recommendations that are necessary to increase the social responsibility of companies through improving the quality of content of reporting information and its orientation to solving global social problems. The findings enabled to reveal the areas of social information disclosure that are most significant for increasing the validity of investment decisions. Conclusions. The identified top social problems are in the focus of attention of economic entities; the dynamics of the quality of disclosures in corporate reports over the past three years has been positive. The trend in the development of non-financial reporting standards in terms of completeness and comprehensive nature of social disclosures enables to count on gradual overcoming of existing problems.

scholarly journals ANALISIS PENGARUH FRAUD PENTAGON DALAM MENDETEKSI FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN JASA NONKEUANGAN

2020 ◽  
Vol 12 (1) ◽  
pp. 104-124
Author(s):  
Yuliamos Tirta Wijaya Pasaribu ◽  
Synthia Madya Kusumawati ◽  
L. Jade Faliany
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
External Pressure ◽  
Annual Reports ◽  
Fraudulent Financial Reporting ◽  
Service Companies ◽  
Positive Effect

Abstract– This research aimed at analyzing the effect of fraud pentagon proxied by nine variables, namely financial stability, personal financial needs, external pressure, financial targets, ineffective monitoring, industry characteristics, auditor changes, director changes, and frequent number of CEO’s picture towards fraudulent financial reporting proxied by Beneish M-Score at non-financial service companies listed on the Indonesia Stock Exchange (IDX) period 2015-2017. The data used were secondary data obtained from annual reports and financial statements of nonfinancial service companies period 2015-2017 with a total of 285 eligible samples. The data analysis methods used were descriptive statistical analysis and logistic regression analysis. The results showed that the variables of financial stability and the nature of the industry generated a significant and positive effect on fraudulent financial reporting. Meanwhile, the variables of personal financial needs, external pressure, financial targets, ineffective monitoring, auditor changes, director changes, and often the CEO's image were not significant to fraudulent financial reporting. Keywords: Fraud Pentagon, Fradulent Financial Reporting, Beneish M-Score

scholarly journals SYSTEMATIZATION OF APPROACHES TO THE FORMAT AND INDICATORS OF INTEGRATED REPORTING FOR THE APPLICATION IN AUDIT

2020 ◽  
Vol 5 (158) ◽  
pp. 52-57
Author(s):  
O. Konoplina ◽  
Y. Mizik ◽  
N. Chekh
Keyword(s):  
Financial Reporting ◽  
Information Disclosure ◽  
Financial Statements ◽  
Information Support ◽  
Enterprise Management ◽  
Audit Process ◽  
Integrated Reporting ◽  
Corporate Reporting ◽  
Environmental Objects ◽  
Key Indicators

The article is devoted to the issue of information disclosure in integrated reporting, its elements and key indicators for audit performance. It is defined that the current requirements for the information base of enterprise management are beyond the financial statements and require data on economic, social and environmental aspects of activity. Non-financial reporting will be an effective tool for domestic and foreign policy of enterprises, which will be the basis for the development and implementation of strategic business projects. The system of public corporate reporting is aimed at satisfying the diverse information requests of stakeholders. It is proved that financial reporting is currently the most important component of public corporate reporting in representing the efficiency of companies. However, stakeholders cannot be satisfied with just a portion of information from financial statements. It is determined that integrated (corporate) reporting combines the main sections of financial, tax, statistical, internal, social reporting. The structure of such reporting will depend on the needs of the management system and business model. The issue of integrated reporting formation is actualized. The existing approaches to the format of integrated reporting, as well as a set of indicators that are part of it, are analyzed and systematized. It is proved that the basis of information support of integrated reporting should be accounting, which will increase the reliability of its data and the level of confidence and will provide reliable information about the activities of the enterprise in the audit process. Therefore, it is proposed to ensure consistency between the indicators of financial and non-financial reporting, it is necessary to provide methodological and organizational improvements for the collection, registration, processing and systematization of information on social and environmental objects of accounting, expressed in monetary units. Keywords: reporting, audit, integration, standardization, stakeholders.

scholarly journals PENGUJIAN FRAUD PENTAGON TERHADAP RESIKO FINANCIAL FRAUDULENT REPORTING

2020 ◽  
Vol 12 (2) ◽  
pp. 147-158
Author(s):  
Meiliana Jaunanda ◽  
Daniel Peterson Silaban
Keyword(s):  
Financial Reporting ◽  
Significant Influence ◽  
Financial Stability ◽  
Firm Growth ◽  
Financial Statements ◽  
External Pressure ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Research Subjects ◽  
Fraudulent Financial Statements

The research to examine how much financial stability, financial target, external pressure, nature of industry, ineffective monitoring, rationalization, capability and oship have effect partially and simultaneously to fraud pentagon. The research subjects used were manufacturing companies and were listed on the BEI in the 2014-2018 period. The results of this study are financial stability has a significant influence on fraudulent financial reporting. Rationalization has a significant effect on fraudulent financial reporting. Arrogance partially has a significant influence on fraudulent financial statements, financial target, external pressure, nature of industry, ineffective monitoring, rationalization, capability and oship simultaneously have a significant effect on fraudulent financial statements. Key Words: Financial performance, Efficiency Operation, Firm Growth, Leverage, Fraud

scholarly journals Fraud diamond: Detection analysis on the fraudulent financial reporting

2016 ◽  
Vol 6 (4) ◽  
pp. 116-123 ◽  
Author(s):  
Stefani Lily Indarto ◽  
Imam Ghozali
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Financial Statements ◽  
Total Sample ◽  
External Pressure ◽  
Fraudulent Financial Reporting ◽  
Detection Analysis ◽  
Public Accountant

The accounting scandal became one of the reasons for analyzing financial statements in order to minimize fraud against the financial reporting. Therefore, companies use the services of a public accountant to audit the financial statements of companies that are expected to limit the fraudulent practices that increase the public’s confidence in the company’s financial statements. This study aims to detect fraud by using analysis of fraud diamond . This study takes banking companies listed on the Indonesian Stock Exchange in 2009-2014, with a total sample of 149 banks. Based on the results the external pressure, financial stability and capability have influence on fraudulent financial reporting. While target financial, ineffective monitoring and rationalization does not affect the fraudulent financial reporting.

scholarly journals Accounting, Reforms and Budget Responsibilities in the Financial Statements

2021 ◽  
pp. 61-69
Author(s):  
Enkeleda Lulaj ◽  
◽  
◽  
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Descriptive Analysis ◽  
Financial Statements ◽  
Financial Reports ◽  
Financial Reforms ◽  
R Program ◽  
Two Samples ◽  
Econometric Tests ◽  
Public Money

The role of accounting (public-financial) with special emphasis on financial reforms and budgetary responsibility for the preparation of financial statements is increasingly becoming necessary and important to increase the economic development and financial stability of the country during governance. In order to have financial reforms, there must be responsibility in public accounting as well as in the analysis and financial reporting by the responsible staff at both levels. It is therefore important to have this cooperation in all areas of policy making, defining the responsibilities of the two levels. The purpose of this article is to show about accounting, reforms and budget responsibilities in the financial statements at both levels of financial-budgetary governance. The research was conducted through a questionnaire according to the practices of the OECD, the IMF and the World Bank. The questionnaire was compiled according to Likert scales and was distributed at the governing levels to the state of Kosovo, its completion was done accurately by attaching audited financial reports for each variable taken for study. The data for all variables were processed via the SPSS and R program, which allowed to draw conclusions and recommendations for all variables at both levels. To achieve the results, econometric tests and analyzes were used, such as: descriptive analysis, testing of two samples, analysis of testing of a dependent variable, etc. Based on the results, it is emphasized that there should be reforms for the safeguarding of public money, fair allocation of expenditures, securing of funds and that the responsibilities at both levels differ from the expectations that should occur in the accounting of financial statements.

scholarly journals FRAUDULENT FINANCIAL REPORTING: A PENTAGON FRAUD ANALYSIS

2019 ◽  
Vol 16 (2) ◽  
pp. 122-134
Author(s):  
Satria tri Nanda ◽  
Neneng Salmiah ◽  
Dina Mulyana
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Fraudulent Financial Reporting ◽  
Financial Reports ◽  
Fraudulent Financial Statements

Financial statements describe the company's financial condition. There are many gaps in the financial reports that enable management to commit fraudulent financial reporting. This study purpose to analyze the pentagon fraud, namely the pressure that is proxied by the financial target, the opportunity that is proxied by the effectiveness of monitoring (ineffective monitoring); Rationalization which is proxied by change in auditor; Competence which is proxied by the change of company directors; and Arrogance which is proxied by the number of CEO images that appear (number of CEO's picture), detects fraudulent financial statements measured using the Altman Z Score. The sample used in this study were 24 pharmaceutical sub-sector manufacturing companies registered on the Indonesia Stock Exchange during the period 2015 until 2017. The type of data used is secondary data obtained from annual reports and company financial statements for the 2015-2017 period. The analysis of the data used is multiple regression using the SPSS version 16. This study found that financial stability and ineffective monitoring influence fraudulent financial statements. Whereas auditor turnover, change of directors and the number of CEO photos that appear do not affect fraudulent financial statements.

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