scholarly journals Significance of risk assessment metric in audit of financial statements and reports

2009 ◽  
pp. 215-225
Author(s):  
Vilmos Wágner
Keyword(s):  
Risk Assessment ◽  
Decision Making ◽  
Decision Support ◽  
Risk Analysis ◽  
Accounting Information ◽  
Financial Statements ◽  
Financial Accounting ◽  
Monitoring Systems ◽  
Financial Reports ◽  
Source Of Information

Management and decision-support of today’s businesses require design and application of management reports based and high-end controlling systems. One of the main source of information for controlling systems is financial accounting that should be designed to support planning, controlling and monitoring systems. Financial and accounting information is essential for decision making support of organizations. Thereforeeligible assurance is needed that these information are true and fair. Internal and external financial audits as assurance qualifiers are linking to the controlling systems through assurance. Weaknesses of and threats to controlling systems shall be recovered and communicated to the management during qualifying process. Recovering of threats should be based on risk analysis, assessment. In this study I would like to present some methods and tools of risk assessment of financial reports, statements and a way on they can be further developed.

scholarly journals Cost with time can yield reliable and relevant financial accounting information

2004 ◽  
Vol 2 (1) ◽  
pp. 60-72 ◽  
Author(s):  
Eno L. Inanga ◽  
Bruce Schneider
Keyword(s):  
Decision Making ◽  
Accounting Information ◽  
Financial Statements ◽  
Financial Accounting ◽  
Corporate Accountability ◽  
Accounting Data ◽  
Historical Cost ◽  
Lead Users ◽  
Accounting Reports ◽  
Nominal Amount

It is generally accepted that one of the key financial accounting problems of the day is how to make financial accounting reports, as tools for corporate accountability and stewardship reporting, both reliable and relevant. Practitioners, rule makers, and academics are struggling with this dilemma that is inherent in historical cost financial statements. This paper suggests that historical cost, transactions- based accounting data is nominally reliable, which is an attribute of relevance, but it can be made timelessly relevant, if data about the precise date and time the nominal amount of the transaction was measured are made available to users. Furthermore, the presumption those company-related accountants and the auditors need to prepare a set of financial statements that they need to make relevant to an unknown set of users, should be abandoned. The valuation algorithm, the processes for making historical cost data relevant to situation-specific decision-making, are the prerogative and, most importantly, the responsibility of the users based on their perceptions of the dynamic, quantum world and their unique needs. The paper develops the logical reasons for the positions taken. It also argues that US-GAAP and the resulting financial statements may lead users of accounting information to allege that the financial statements are fraudulent. It is well-recognized by accountants and users that time, the details of which are currently under-reported, is a material fact related to the significance and usefulness of accounting information. Thus, the omission of facts about when the measurements were made, known to be important to understanding the reported information, may be the basis for the allegation of fraud.

scholarly journals Audit, Accounting, and Finance Training for Management Trainees of PT HSBC Jakarta

2021 ◽  
Vol 2 (2) ◽  
pp. 89-100
Author(s):  
Wiwiek Mardawiyah Daryanto
Keyword(s):  
Decision Making ◽  
Case Studies ◽  
Positive Feedback ◽  
Accounting Information ◽  
Information Service ◽  
Financial Statements ◽  
Financial Reports ◽  
New Employees ◽  
Related Discipline ◽  
Foreign Universities

Accounting is an information service related to all of the activities in the organization, such as operating activities, financing activities, and investing activities. And in all of the activities the emphasis is on using accounting information in the process of making decisions based on financial reports. The financial reports are the result of the accounting process. One related discipline is auditing, which can be defined as the process of examining and evaluating a company's financial statements through an independent auditor. In addition, accounting is used to support the management for internal decision making, or called management accounting. To understand the importance of accounting, Sekolah Bisnis dan Manajemen – Institut Teknologi Bandung (SBM-ITB) in collaboration with PT HSBC, Jakarta, Indonesia conducted General Banking Training on March 22-26, 2021. The training consists of nine (9) topics, including Auditing, Accounting and Finance and is held on March 23, 2021. The speakers of the training are several academicians, including the author. The method used in the training is online lecturing and discussion combined with case studies. We also conducted pre and post-tests to ensure the result of the training. The participants are seven (7) new employees of PT HSBC recruited from various domestic and foreign universities. The results of the training showed that the participants improved their understanding on the importance and the use of accounting information based on pre and posttests. In addition, it showed an increase in value of 54% in the posttest. Further, the participants are satisfied and provide positive feedback of 4.14 out of 5. After observing the process, we consider that the training ran smoothly and effectively due to high interest and enthusiasm of the participants.

scholarly journals METHODS OF BALANCE SHEET ITEMS EVALUATION AND RECOGNITION IN FINANCIAL ACCOUNTING AND THEIR IMPACT ON LIQUIDITY INDICATORS

2011 ◽  
Vol 1 (3) ◽  
pp. 204
Author(s):  
Iveta Mietule ◽  
Rita Liepiņa
Keyword(s):  
Data Acquisition ◽  
Balance Sheet ◽  
Accounting Information ◽  
Evaluation Methods ◽  
Financial Accounting ◽  
Financial Reports ◽  
Financial Indicator ◽  
Separate Balance ◽  
Economic Nature ◽  
Indicator Evaluation

Displaying and evaluation methods of the accounting information in the financial reports influence greatly the authenticity, indicator evaluation and making decisions of the economic nature. In the article the evaluation methods of separate balance items, their influence on the indicators of the companies’ liquidity are interpreted, the problems of the balance item classification in the financial reports are updated. The authors believe that when investigating a specific financial indicator (for example, liquidity) it is important to analyse and evaluate both the methodology of data acquisition in accounting and to evaluate the methods of recognition of these elements in financial reports.

scholarly journals ANALISIS PENYAJIAN LAPORAN KEUANGAN BERDASARKAN PENERAPAN STANDAR AKUNTANSI KEUANGAN ENTITAS TANPA AKUNTABILITAS PUBLIK PADA PT. FORTUNA INTI ALAM

2017 ◽  
Vol 12 (01) ◽  
Author(s):  
Marddyanto Dwi Saputra ◽  
Jullie J. Sondakh ◽  
Treesje Runtu
Keyword(s):  
Decision Making ◽  
Cash Flow ◽  
Descriptive Analysis ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Statement ◽  
Public Accountability ◽  
Financial Situation ◽  
Chartered Accountants

The financial statements in principle are the result of the accounting process used to communicate the financial situation to internal and external parties that are aimed at decision making. The importance of the financial statements, then the financial statement should be prepared carefully and without errors. Financial Accounting Standards generally are not in accordance with entities whose accountability is not as significant. Therefore, the Institute of Indonesia Chartered Accountants (IAI) has issued Financial Accounting Standards Entity Without Public Accountability (SAK ETAP) intended for entities that do not have significant public accountability and publish financial statements for general purposes for external users. This study aims to analyze the implementation of ETAP in the presentation of PT. Fortuna Inti Alam’s financial statement. The method used in this study is comparative descriptive analysis. Results of this research is based on the financial statements of 2016 show that PT. Fortuna Inti Alam has implemented ETAP but it is not fully complete yet. The Company has not presented Statement of Owner’s Equity, Cash Flow Statement, and Notes to Financial Statements. This research suggests that companies can prepare components of other financial statements in accordance with applicable standards.Keywords : Financial Statements, SAK ETAP.

scholarly journals "Replika Endemi" Resistensi PSAK 71 Sebagai Countercylical Terhadap Sustainability Perbankan Ditengah Pandemi

2021 ◽  
pp. 109-117
Author(s):  
Nicholas Alexander Tungga ◽  
Melithasya Angelina ◽  
Elliza .
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Current Status ◽  
Corporate Accountability ◽  
Financial Accounting Standards Board ◽  
Model Framework ◽  
Financial Reports ◽  
Framework Design ◽  
Economic Upturn

Financial reports are important because they are useful for providing an overview for stakeholders in their decision making. Where in the preparation of financial statements the main regulation used is the Statement of Financial Accounting Standards (PSAK) established by the Indonesian Institute of Accountants (IAI) through the Financial Accounting Standards Board (DSAK). In the current status quo of Indonesia in facing the Covid-19 pandemic, the existence of PSAK has begun to be tested, adjustments must be made to financial accounting standards which are useful to strengthen the lines of corporate accountability in Indonesia and are able to answer the main urgency of Indonesia today, namely the weakening of the country's economy. The purpose of this paper is to produce a framework that can later become an alternative for banks in making decisions for implementing the PSAK 71 post model. The approach used in this paper is a qualitative approach by providing arguments and solutions for Indonesia's current economic conditions through the resulting framework design. After considering the aspects that affect the risk of bad credit, the conclusion is that PSAK 71 is able to trigger an economic upturn in Indonesia, because in its implementation it does not necessarily look at one aspect only but considers other aspects in responding to issues related to bad credit.  Keywords: PSAK 71, Post Model Framework, Bad Credit, Indonesian Economy

THE RESEARCH TREND OF INFORMATION TECHNOLOGY AND DECISION MAKING IN 2009

2010 ◽  
Vol 09 (01) ◽  
pp. 1-8 ◽  
Author(s):  
YONG SHI
Keyword(s):  
Data Mining ◽  
Decision Making ◽  
Information Technology ◽  
Decision Support ◽  
Risk Analysis ◽  
Multiple Criteria Decision Making ◽  
Advisory Board ◽  
Research Trend ◽  
Research Topics

The research topics of the 39 papers published in the International Journal of Information Technology and Decision Making (IT&DM) in 2009 can be classified into three major directions: decision support, multiple criteria decision making, and data mining and risk analysis. The Editor-in-Chief, on behalf of the editorial board and advisory board, highlights the key ideas of these contributions. The seven papers in first issue of 2010 IT&DM are also introduced.

scholarly journals Research Design of Mobile Based Decision Support for Early Flood Warning System

2020 ◽  
Vol 14 (17) ◽  
pp. 130
Author(s):  
Mohd Faizal Omar ◽  
Mohd Nasrun Mohd Nawi ◽  
Jastini Mohd Jamil ◽  
Ani Munirah Mohamad ◽  
Saslina Kamaruddin
Keyword(s):  
Mathematical Model ◽  
Risk Assessment ◽  
Decision Making ◽  
Decision Support ◽  
Research Design ◽  
Flood Risk ◽  
Architectural Design ◽  
Warning System ◽  
Economic Losses ◽  
Flood Risk Assessment

Flooding has become one of the most rapidly growing types of natural disaster that has spread around the globe. It is is one of the major natural hazards in many countries and mostly affected in the low-lying or flood prone areas. In order to minimize loss of life and economic losses, a detailed and comprehensive decision making tool is necessary for both flood control planning and emergency service operations. In this paper, we demonstrate our research design for mobile based decision support of Flood Early Warning System (FEWS). We outlined four research objectives. Firstly, critical criteria for flood risk assessment will be identified and the second step will involve develop measurement model for relative flood risk using Geographic Information System (GIS), Multi Attribute Decision Making (MADM) and data mining technique. In the third objectives, the holistic architectural design is develop by incorporating the communication technology and other related ICT requirements for the mobile decision support. The fourth objective is to validate the mathematical model and architectural design. Case study approach is chosen in order to understand the flood event and validate the decision support model. Following well-defined procedures, flood maps were drawn based on the data collected from expert responses to a questionnaire, the field survey, satellite images, and documents from flood management agencies. It is anticipates that by integrating of mathematical model, GIS and mobile application in flood risk assessment could provide useful detailed information for flood risk management, evacuation, communication. The decision support design from this study is perhaps to improve the warning system and contribute to reduction of casualties.

Model of the Decision Support System under Condition of Non-Determination for Manufacturing Process Support

2014 ◽  
Vol 611 ◽  
pp. 416-423
Author(s):  
Cyril Klimeš ◽  
Radim Farana
Keyword(s):  
Decision Making ◽  
Decision Support ◽  
Risk Analysis ◽  
Decision Support System ◽  
Decision Support Systems ◽  
Support System ◽  
Manufacturing Process ◽  
Uncertain Information ◽  
Process Support ◽  
Decision Support Models

Decision support systems mean interactive computer systems, which assist to decision making subjects to utilize both data and models to solve non-structured issues. These systems were established mainly on the basis of a risk analysis, utilizing the experience/skills, conclusion making and intuition, enabling very fast and flexible analysis with a good response, enabling the application of manager intuition and judgment this way. However, such decisions are often based on uncertain information. This fact requires the establishment of other decision support models.

FINANCIAL ACCOUNTING AND REPORTING IN SMALL FIRMS

1996 ◽  
Vol 04 (02) ◽  
pp. 163-182
Author(s):  
A.J.M. Humayun Murshed
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Small Firms ◽  
Financial Statements ◽  
Financial Accounting ◽  
Organizational Decision Making ◽  
Business World ◽  
Degree Of Satisfaction ◽  
Modern Business ◽  
And Control

Small firms’ role in the modern business world is well recognized. Despite such recognition, there exists a dearth of research in small firms, particularly in understanding the implications of accounting and finance. This paper reports the results of an empirical study carried out on the financial accounting and reporting of small firms in Bangladesh. Financial reporting does not seem to be important in these firms except for complying with tax formalities. No systematic way of presenting financial figures among the firms was observed. Most firms’ financial statements do not provide any database for organizational decision making. The managers have a high degree of satisfaction, particularly with the format used in presenting financial statements. On the contrary, they hardly use those financial statements in organizational decision making and control. They prefer to use a simple form of financial statement and show almost no concern for users’ need and attaining financial control.

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