Determining a typology of behavioral traits indicating the inclination to material misstatement risk among those charged with financial reporting

2021 ◽  
Vol 22 (4) ◽  
pp. 422-437
Author(s):  
Sergei V. ARZHENOVSKII ◽  
Tat'yana G. SINYAVSKAYA ◽  
Andrei V. BAKHTEEV
Keyword(s):  
Financial Reporting ◽  
Methodological Framework ◽  
Business Risk ◽  
Multivariate Statistical Methods ◽  
Multivariate Statistical ◽  
Neutral Group ◽  
Financial Reports ◽  
Behavioral Traits ◽  
Audit Strategy ◽  
Assessment Procedures

Subject. We typified persons charged with financial reporting, who are more than inclined to misstatement risk due to fraud. Objectives. We herein develop a methodological framework for determining types of people charged with financial reporting. The typification is based on behavioral traits of the inclination to material misstatement risk. Methods. We applied multivariate statistical methods of factor and cluster analyses on the basis of empirical data we gathered in the survey of 515 employees charged with financial reporting. Results. As we found, if a person charged with financial reporting has some behavioral traits admitting the possibility of taking risk and an expectation of remaining unpunished and a pathological monetary type in case of legislative illiteracy, these signs mean the inclination to material misstatement risk due to fraud. Such people account for nine percent of the sample. One third of the sample is made up of people who are not inclined to risk at all. The neutral group in terms of the above risk comprises slightly more than one third. The remaining people (about 23 percent) can be qualified as suspicious in terms of their inclination to the above risk, which should be a reason for additional auditing procedures. Conclusions. Being not very difficult, the proposed methodological framework helps improve the efficacy of risk assessment procedures during audits. From perspectives of the inclination to business risk, determining types of employees charged with financial reports allows to decide on the necessity of additional auditing procedures when setting up the audit strategy and planning to cushion the material misstatement risks due to fraud.

The model evaluating the propensity of the auditee's management to risk

2020 ◽  
Vol 23 (11) ◽  
pp. 1253-1268
Author(s):  
S.V. Arzhenovskii ◽  
T.G. Sinyavskaya ◽  
A.V. Bakhteev
Keyword(s):  
Risk Assessment ◽  
Financial Reporting ◽  
Low Income ◽  
Econometric Model ◽  
Financial Statements ◽  
Binary Choice ◽  
Methodological Framework ◽  
Risk Propensity ◽  
Large Production ◽  
Assessment Procedures

Subject. We identify what determines the risk propensity of those charged with financial reporting through surveying, so as the results could be subsequently applied in assessing the risk of material misstatement of financial reporting due to fraud. Objectives. We herein outline the methodological framework for conducting risk assessment procedures with respect to material misstatements due to fraud as part of financial reporting audits. Thus, we set an econometric model to empirically evaluate the probable risk propensity of a person charged with financial reporting. Methods. We applied the logistic regression model identified through empirical data of the survey we conducted among 515 employees of audited entities. Results. For purposes of research, we specified and identified the econometric model of a binary choice. The higher risk propensity was observed among people above 45, those having mediocre or low income, one profession, working for large production enterprises. Conclusions. What makes the technique advantageous is its low labor-intensity and higher efficiency of risk assessment procedures as part of audits. Based on the model, forecasts will help evaluate the propensity of the audited entity's management to the business risk. The findings can be used for analytical procedures in assessing the risk of material misstatements in financial statements due to fraud as part of audits, referring to its as the expected result. If the acceptability of a divergence between the expected and factual values is subsequently evaluated, this will help assess the risk of material misstatement in the audited entity's financial statements and determine whether additional auditing procedures are needed.

Long-term variations in individual particle types in the aerosol of Phoenix, Arizona, as determined using automated electron microprobe analysis and multivariate statistical techniques

1993 ◽  
Vol 51 ◽  
pp. 742-743
Author(s):  
Karen A. Katrinak ◽  
James R. Anderson ◽  
Peter R. Buseck
Keyword(s):  
Electron Microprobe ◽  
Fine Fraction ◽  
Coarse Fraction ◽  
Motor Vehicles ◽  
Multivariate Statistical Methods ◽  
Multivariate Statistical ◽  
X Ray ◽  
Mineral Particles ◽  
Anthropogenic Air Pollutants

Aerosol samples were collected in Phoenix, Arizona on eleven dates between July 1989 and April 1990. Elemental compositions were determined for approximately 1000 particles per sample using an electron microprobe with an energy-dispersive x-ray spectrometer. Fine-fraction samples (particle cut size of 1 to 2 μm) were analyzed for each date; coarse-fraction samples were also analyzed for four of the dates.The data were reduced using multivariate statistical methods. Cluster analysis was first used to define 35 particle types. 81% of all fine-fraction particles and 84% of the coarse-fraction particles were assigned to these types, which include mineral, metal-rich, sulfur-rich, and salt categories. "Zero-count" particles, consisting entirely of elements lighter than Na, constitute an additional category and dominate the fine fraction, reflecting the importance of anthropogenic air pollutants such as those emitted by motor vehicles. Si- and Ca-rich mineral particles dominate the coarse fraction and are also numerous in the fine fraction.

Beyond Financial Reporting. Integrated Reporting and its determinants: Evidence from the context of European state-owned enterprises

2019 ◽  
pp. 43-72
Author(s):  
Giuseppe Nicolò ◽  
Gianluca Zanellato ◽  
Francesca Manes-Rossi ◽  
Adriana Tiron-Tudor
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Gender Diversity ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Integrated Reporting ◽  
Financial Reports ◽  
The Public ◽  
Explanatory Factors ◽  
Board Gender Diversity

Integrated reporting (IR), which aims to overcome the limitations of both tradi-tional financial and stand-alone non-financial reports, has gained momentum as a single comprehensive tool merging financial and non-financial information. Initially conceived for private sector entities, IR is also establishing itself in the public sector context as a vehicle for transparency and accountability. This research offers an empirical investigation of IR practices in the State-Owned Enterprises (SOEs) context. More specifically, the paper investigates the levels of disclosure provided through IR by a sample of 34 European SOEs and explores the effects of potential explanatory factors. The results indicate a fair level of IR disclosure and a trend of reporting information already requested under international accounting standards. The findings also highlight that industry (basic materials and financials) and size positively influence the level of IR disclosure in a particularly strong way, while governance features (board size and board gender diversity) and the provision of external assurance do not exert any impact.

Pollen morphology of some Tamarix (Tamaricaceae) species of Iran

2020 ◽  
Vol 62 (1-2) ◽  
pp. 151-161
Author(s):  
T. Shagholi ◽  
M. Keshavarzi ◽  
M. Sheidai
Keyword(s):  
North Africa ◽  
Pollen Grains ◽  
Ecological Niches ◽  
Multivariate Statistical Methods ◽  
Multivariate Statistical ◽  
Qualitative And Quantitative ◽  
Petal Length ◽  
Electron Microscopes ◽  
High Level ◽  
Scanning Electron Microscopes

Tamarix L. (Tamaricaceae) is a halophytic shrub in different parts of Asia and North Africa. Taxonomy and species limitation of Tamarix is very complex. This genus has three sections as Tamarix, Oligadenia, and Polyadenia, which are mainly separated by petal length, the number of stamens, the shape of androecial disk and attachment of filament on the androecial disk. As there was no palynological data on pollen features of Tamarix species of Iran, in the present study 12 qualitative and quantitative pollen features were evaluated to find diagnostic ones. Pollen grains of 8 Tamarix species were collected from nature. Pollen grains were studied without any treatment. Measurements were based on at least 50 pollen grains per specimen. Light and scanning electron microscopes were used. Multivariate statistical methods were applied to clarify the species relationships based on pollen data. All species studied showed monad and tricolpate (except some individuals of T. androssowii). Some Tamarix species show a high level of variability, in response to ecological niches and phenotypic plasticity, which make Tamarix species separation much more difficult. Based on the results of the present study, pollen grains features are not in agreement with previous morphological and molecular genetics about the sectional distinction.

PENGAKUAN DAN PENGUKURAN BELANJA SUBSIDI ENERGI BERBASIS AKRUAL – STUDI KASUS TAHUN 2015

2017 ◽  
Vol 1 (2) ◽  
pp. 115-124
Author(s):  
Azas Mabrur ◽  
Siswanto Siswanto
Keyword(s):  
Financial Reporting ◽  
Large Share ◽  
State Budget ◽  
Accounting Standard ◽  
Financial Reports ◽  
Government Accounting ◽  
Cash Transaction ◽  
Ministry Of Finance ◽  
Accrual Basis ◽  
Energy Subsidy

Subsidy spending has a large share in the state budget (APBN). Thereby affecting the audit results by Supreme Auditor on government financial reports (LKPP). with the implementation of accrual-based government accounting in 2015, subsidy spending not only records transactions/activities based on cash flow but also non-cash transaction such as subsidy expenses and subsidy payable. This study aims to determine the implementation of the accrual basis on the accounting of energy subsidy spending.This study examines whether the recognition and measurement of energy subsidy spending, energy subsidy expenses and energy subsidy obligations have been presented in accordance with accrual-based government accounting standard and whether the recognition and measurement issues set out in the relevant Ministry of Finance Regulation (PMK) are in conformity with the accrual basis of accounting principles.The results show that the accounting of energy subsidy spending has been implemented in accordance with the PMK. However, the results also show that the PMK that regulates the accounting and financial reporting system of accrual-based subsidy spending still needs improvement.The necessary improvements are related to the recognition of subsidy expense over a period, the measurement of subsidy expenses, and the mechanism of subsidy payable disposal.

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

2020 ◽  
Vol 27 (2) ◽  
pp. 54
Author(s):  
Muslichah Muslichah ◽  
Sunarto Sunarto ◽  
Anang Amir Kusnanto ◽  
Sri Indrawati ◽  
Hariyanto Hariyanto
Keyword(s):  
Financial Reporting ◽  
Quantitative Data ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Unexpected Finding ◽  
Financial Reports ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Chartered Accountants ◽  
Structured Questionnaire

This study aims to discuss the adoption of financial reporting and accounting standards for small-medium enterprises (SMEs) by Muslim entrepreneurs. A structured questionnaire was used to collect quantitative data from the SME owners. 214 Muslim owners of SME businesses participated in the survey. The results show that only a few Muslim entrepreneurs prepared financial reports regularly. The main reason for preparing the statement is for calculating tax, borrowing money, and decision making. An unexpected finding from this study is that most of the Muslim owners are unaware of Standard for SMEs. Users of SME financial reports include tax authority, banks, and owners, or shareholders. This study enriches the financial reporting studies by examining the accounting standards for SMEs in a Muslim dominated country. The findings of this study also have implications for the Institute of Indonesia chartered accountants (IICA) as standard setter. IICA must routinely disseminate these standards to SMEs and also assist them in preparing financial reports

THE GERMAN ACCOUNTING PROFESSION — 1931 AND BEFORE: A REFLECTION OF NATIONAL IDEOLOGIES

1993 ◽  
Vol 20 (2) ◽  
pp. 139-162 ◽  
Author(s):  
Mary E. Harston
Keyword(s):  
Financial Reporting ◽  
Competitive Market ◽  
Embryonic Stage ◽  
Market Forces ◽  
Economic Crises ◽  
Accounting Profession ◽  
Financial Reports ◽  
Cultural Ideologies

The purpose of this paper is to examine how the demand for independent audits and the German accounting profession evolved from the late 1800s to the early 1930s despite the absence of competitive market forces. The paper posits that cultural ideologies, specifically with respect to nationalism, paternalism and anti-individualism, provide reasons for the unique configuration of not only the German corporate/banking structures responsible for originating financial reports but the accounting profession that audited them. As the German accounting profession was in an embryonic stage, it was not capable of successfully confronting the corporate/banking alliance to significantly impact financial reporting or the demand for audits. Economic crises served as the dominant pressure for business reform and legislation mandating audits in Germany.

OBJECTIVES OF FINANCIAL REPORTING, ABORIGINAL COST, AND POOLING OF INTERESTS ACCOUNTING

2012 ◽  
Vol 39 (2) ◽  
pp. 45-80 ◽  
Author(s):  
Hugo Nurnberg
Keyword(s):  
Public Policy ◽  
Financial Reporting ◽  
Information Needs ◽  
Public Utility ◽  
Financial Reports ◽  
Policy Makers ◽  
Business Combinations ◽  
Decision Usefulness ◽  
Rate Base ◽  
Utility Rate

ABSTRACT Through the years, pooling of interest accounting was criticized as contrary to the decision usefulness objective of financial reporting and potentially misleading to stockholders and creditors, the assumed principal users of financial reports. This paper does not dispute those criticisms. It demonstrates, however, that there were some very good reasons for permitting pooling accounting for certain business combinations when the method was developed in the 1940s. At that time, the basic objectives of financial accounting encompassed stewardship and decision usefulness for multiple users, including public utility regulators and public policy makers. Pooling accounting developed in part to satisfy the information needs of public utility regulators who favored aboriginal (original historical) cost to determine the utility rate base; additionally, it was favored by public policy makers who sought lower utility rates (prices) to foster social and economic goals.

Interim Reporting Frequency and the Mispricing of Accruals

2018 ◽  
Vol 32 (3) ◽  
pp. 29-47
Author(s):  
Shou-Min Tsao ◽  
Hsueh-Tien Lu ◽  
Edmund C. Keung
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Data Availability ◽  
Financial Reports ◽  
Regulatory Changes ◽  
Sample Composition ◽  
Reporting Frequency ◽  
Over Time ◽  
Jel Classifications ◽  
Accrual Mispricing

SYNOPSIS This study examines the association between mandatory financial reporting frequency and the accrual anomaly. Based on regulatory changes in reporting frequency requirements in Taiwan, we divide our sample period into three reporting regimes: a semiannual reporting regime from 1982 to 1985, a quarterly reporting regime from 1986 to 1987, and a monthly reporting regime (both quarterly financial reports and monthly revenue disclosure) from 1988 to 1993. We find that although both switches (from the semiannual reporting regime to the quarterly reporting regime and from the quarterly reporting regime to the monthly reporting regime) hasten the dissemination of the information contained in annual accruals into stock prices and reduce annual accrual mispricing, the switch to monthly reporting has a lesser effect. Our results are robust to controlling for risk factors, transaction costs, and potential changes in accrual, cash flow persistence, and sample composition over time. These results imply that more frequent reporting is one possible mechanism to reduce accrual mispricing. JEL Classifications: G14; L51; M41; M48. Data Availability: Data are available from sources identified in the paper.

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