scholarly journals Fraud Examination of the Enron Corp Company

2021 ◽  
pp. 15-24
Author(s):  
Mahmoud Mofid Abdul Karim

Abstract This research paper takes into consideration the tools that are availed by Modified Altman, Chanos, Beneish, among others, to evaluate Enron Corp yearly 10k financial report as filed with SEC for the years beginning 1997 to 2001 mainly to identify the financial fraud that the company committed and how it could have been prevented before it escalated beyond control. The reported base its pri-mary data source on the SEC Edgar Database, which has information on financial statements for all publicly listed companies. After successfully applying analytical tools such as Altman's Bankruptcy Predictor, Fraud Statement Index, and Analyt-ical tools, this research paper concludes that the company's fraud could have been detected early on between the years 1999- 2000 period (Lucas & Koerwer, 2004). Keywords: Bankruptcy, Financial ratios, Fraud, Beneish model.

2019 ◽  
Vol 13 (1) ◽  
pp. 43-48
Author(s):  
Ioan-Ovidiu Spătăcean

AbstractThe Beneish model is a useful tool for assessing the potentially fraudulent behaviour of an entity that could resort to misstated financial reporting by manipulating earnings. Tarjo ---amp--- Herawati (2015) concluded that “the M-score of the Beneish model was generally able to detect financial fraud”, following a study on 35 listed companies that were confronted with allegations of fraud in the period 2001-2014, by accessing the sanctions database applied to companies of public interest (issuers) published by the Financial Supervisory Authority. Also, Ahmet Ozcan (2018) stated that the Beneish model “brings effective value in the analysis of the quantitative characteristics of falsified financial statements”, a conclusion based on a concentrated research on a sample of 174 firms over the period 2005-2017. However, the construction of this model was not oriented for the financial services industry, therefore the studies referred to above do not include any investment firms. Our research aims to assess the relevance of the use of the Beneish model to entities involved in scandals on fraudulent or suspected distorted financial reporting operations (Romcab, 2017 and Harinvest, 2013) in order to Test the Beneish model’s validation capability. On the basis of the conclusions obtained, it can be accepted that the applicability of the model is validated for the entities examined.


2013 ◽  
Vol 380-384 ◽  
pp. 4494-4499
Author(s):  
Lian Feng Xia

Currently, listed companies in our country generally draw up consolidated financial statements according to the new accounting standards requirements, and release consolidated financial statement to investors and relevant financial statements users so as to public company financial information. Consolidated financial statements can comprehensively reflect the financial position and operating results of listed companies. The key basic work of consolidated financial statements preparation is to reasonably determine the consolidation range of consolidated financial statements. Although the current new accounting standards have stipulated consolidation range, the new accounting standards has not specified the substantial control of concrete measurement method problem. So this paper takes one listed companys financial report and related data from 2007 to 2011 as data sources,selects listed enterprises with no clear merger reason as research object. Multivariate linear regression model is adopted to analyze the influence of merge scope change on book performance. The results show that the consolidated range change will change enterprises book report data,and the influence average value of book achievement is about 10.72%.


2008 ◽  
Vol 5 (3) ◽  
pp. 289
Author(s):  
Nang D. Gunawan ◽  
Heru Satyanugraha

<p class="Style1"><strong><em>Adopting international accounting standard shall be beneficial to fins listed in </em></strong><strong><em>stock exchange. This research investigates the extent to which the disclosure require-</em></strong><strong><em>ment of Intemational Accounting StandardsliAS-1) for presentation of financial state-</em></strong><strong><em>ments are complied by the listed companies in Jakarta Stock Exchange. The financial </em></strong><strong><em>reports of 280 companies listed in Jakarta Stock Exchange were examined. The study </em></strong><strong><em>concludes that in general listed companies in Jakarta do not comply fully with lAS-1 </em></strong><strong><em>requirements. In items of "components of financial statements", "disclosure of income statement", 'timeliness", "comparability", "stock information" they do comply with the </em></strong><strong><em>international standard. For the other items, " compliance", "going concern", °divi-</em></strong><strong><em>dend", "description of reserves", "reclassification", they tend not to comply with the </em></strong><strong><em>requirements. The study found also there are differences of size of the companies </em></strong><strong><em>toward "timeliness' and "disclosure", differences of types of auditor on compliance to </em></strong><strong><em>"disclosure", and pmfitability of the companies on "going concern".</em></strong></p><strong><em>Key words : compliance, financial report, accounting standard, intemational, jakarta stock exchange,</em></strong>


2021 ◽  
Vol 11 (1) ◽  
pp. 16-22
Author(s):  
Hurian Kamela ◽  
Ryan Saputra Alam

The background of this research is Indonesian companies are still voluntarily using GRI compare to other countries' cases. The main thing is that the limited number of companies that use GRI can affect its performance. The organization's performance describes the company's financial ratios as one of the effective financial performance descriptions. This is related to economic factors that are internal to the company, such as GRI, CSR, and ESG. The purpose of this study was discussed because of the limited number of listed companies in Indonesia (listed in IDX) using the GRI G4 method globally, which is one of the highlights of this research. The data used for 4 years, namely 2016-2019 in Indonesia. This research methodology uses panel data regression. This study uses secondary data, namely from the company's financial statements and database streams (Thomson Reuters Eikon). The results of the study prove that GRI affects financial ratios. The same result also occurs in other variables, namely ESG affects financial ratios (ROA). The controversy is that companies that have been listed must pay more attention to developments in items in GRI to gain trust from foreign investors and confidence in the company's sustainability.


1992 ◽  
Vol 16 (4) ◽  
pp. 57-68 ◽  
Author(s):  
Ed Vos

Benchmarks for judging financial performance are often found by using financial statement ratio analysis. Ratios of the publicly listed sector are not good surrogates for those of the unlisted sector. Observations of 209 financial statements from the unlisted sector (“small”) when compared to all publicly listed companies in New Zealand for the period 1984-1987 show larger ranges and variability for the unlisted sector. Unlisted companies’ financial ratios and their correlations cannot be considered the same as those of the listed companies. Caution is required before any use is made of listed companies’ performance ratios for judgments on unlisted companies.


2020 ◽  
Vol 19 (1) ◽  
pp. 77
Author(s):  
Zakiyyah Ilma Ahmad

This study aims to determine how the performance of BAZNAS Jawa Timur in zakat, infaq, and shadaqah distribution. This type of research is explanatory research, namely research that explains the relationship of the influence of independent variables on the dependent variable through the hypothesis test. Type of data used in this study is secondary data in the form of financial data sourced from financial statements related to the variables studied. Data source obtained by BAZNAS financial report in East Java Province. The results of this study are the zakat collection variable and infaq collection variable does not affect the amil productivity. Amil productivity does not affect the performance of zakat distribution and infaq distribution performance. All hypotheses are rejected. Keywords: Zakat, Infaq, Shadaqah, Collecting, Amil Productivity, Distribution Performance.


Author(s):  
Christine Herawati Limbong ◽  
Elida Florentina Sinaga Simanjorang ◽  
Nova Jayanti Harahap ◽  
Zulkarnain Nasution

Every company must have financial reports that record capital, profits, losses, production wages, salary payments, which are related to the whole business. This report is called a financial report or financial report which records all information about a company's finances. The financial report is the final result of the process of recording financial transaction activities in a company that describes the company's financial condition in an accounting period and is a general description of the performance of a company. Where the purpose of making financial statements is to communicate the economic resources (assets), and obligations of an entity at a certain time, and the capital owned by the company. One way to get good financial reports is to compare the numbers in the financial statements. In making comparisons known as financial ratio analysis. The financial ratios used are profitability ratios and liquidity ratios. The results of these financial ratios will show the health condition of the company in question and are used to assess management's performance in a period whether it has achieved the targets as set and assesses management's ability to effectively empower company resources.


2020 ◽  
Vol 1 (4) ◽  
pp. 315-324
Author(s):  
Muhammad Ichsan Siregar ◽  
◽  
H. Abdullah Saggaf ◽  
Rifani Akbar Sulbahri ◽  
Mohammad Aryo Arifin ◽  
...  

Purpose: This study aims to determine the health level of the financial report of the performance of PT. Garuda Indonesia Tbk with the financial ratios of State-Owned Enterprises for the period 2018-2019. Research methodology: Researchers took the statement of financial position of profit and loss as a tool to assess the soundness of the financial performance of PT. Garuda Indonesia Tbk. Results: In accordance with Decree: KEP-100 / KBU / 2002, as a result, In 2018 PT. Garuda Indonesia Tbk was declared unhealthy with a “CCC” assessment in which the total score obtained from the financial aspect was 21 with a standard assessment of 20 ≤ TS ≤ = 30 with the category of assessment “CCC”. Meanwhile in 2019, PT. Garuda Indonesia Tbk was declared unhealthy with a “BB” rating in which the total score obtained from the financial aspect is 45 with a standard assessment of 40 ≤ TS ≤ = 50 with the category of rating “BB”. Limitations: Limitations of this research are: this study only took 2 years in the period 2018-2019, the sample taken in this study is a statement of financial position and income. Contribution: This study gives a contribution to policy input from the financial performance of PT. Garuda Indonesia Tbk Keywords: Financial, Performance, Ratios, Financial statements


2020 ◽  
Vol 4 (2) ◽  
pp. 39
Author(s):  
Serly Serly ◽  
Eddy Eddy

Financial statements are means used by entities to communicate financially related circumstances to interested parties both related to the entity's internal and external entities. There are various types of fraud occur in the companies. Types of fraud cases that often occur are asset misappropriation and fraudulent financial statements. Asset Misappropriation is the kind of  act of fraud committed by using or taking company property for personal gain. Fraudulent financial statements are defined as fraudulent actions committed by the manager of the company which in the form of material misstatement in the financial report for the purpose to attract the investor. The fraud can be financial or non-financial. This study is meant to examine the effect of financial ratios in detecting fraudulent financial statements. The independent variable used in this study consisted of 5 variables: leverage, profitability, asset composition, liquidity and capital turn over. This study used the financial statements listed on the Indonesia Stock Exchange (IDX) as samples. The sampling technique used in this study was purposive sampling. The period range of the financial statements used in this study is 2014-2018 or the range of 5 years. Collected data are then tested via SPSS software.


2014 ◽  
Vol 13 (1) ◽  
Author(s):  
Fitri Ismiyanti

The purpose of this study is to detect fraud or moral hazard on the financial statements that prepared by the company. This research uses financial ratio analysis to detect financial fraud and moral hazard. Fundamental contribution of this study is on the detection of fraud in the financial statements in accordance with GAAP, so investors and external parties able to find any intentional distortion of financial statements of the company. In addition, the condition of this deviation can also be traced in relation to its influence on the financial performance of the company, and those who benefited from the fraud. In particular the contribution of research is to provide information on the occurrence of fraudulent financial reporting that occurred in several companies in Indonesia. This research provides empirical evidence on the effectiveness of financial ratio analysis to detect fraudulent financial reporting. In addition, the calculation of financial ratios is expected to be early detection of potential fraudulent financial reporting in any form. This study uses financial statement ratio analysis to detect financial fraud. The results showed of 23 financial ratios are used, only two liquidity ratios (current ratio) and profitability (ROE) which can be used to help determine that a company is likely to carry out fraud in the financial statements..


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