CFEBT Method as a Tool of Fraud Risk Management and Decreasing Information Asymmetry in Accounting

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F17%3A43896321" target="_blank" >RIV/60076658:12510/17:43896321 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

CFEBT Method as a Tool of Fraud Risk Management and Decreasing Information Asymmetry in Accounting

Original language description

The paper deals with the possibilities of using CFEBT approach to identify potential risks of manipulated financial statements beyond their true and fair view of accounting including accounting errormistakes and frauds. The existing research has verified the hypothesis of identifying the risk of manipulation of financial statements in the case study for 5 accounting periods with a CFEBT score in the condition of Czech accounting regulations and international standards of accounting recording (IFRS) in case studies of particular accounting units, as well as in the case studies where the techniques of creative accounting windows dressing off-balance sheet financing were used. The CFEBT results of the study cases were subsequently verified and compared with the results of Beneish and Jones Non-discretionary Accruals models in conditions of Czech aaccounting regulations and IFRS. The following paper further analysesanalyzes and assesses the CFEBT approach to techniques and tools to identify risks of manipulated financial statements or tools for decreasing information asymmetry among the users of financial statements, with the use of main methods of creative accounting and accounting frauds in CFEBT model, Beneish?s model, Jones? model of Non-discretionary Accruals in comparison with the results of Altman´s model of financial health of a business corporation. A CFEBT risk triangle of accounting errors and frauds was proposed on the basis of results revealed by case studies, tests of real data derived from financial statements of accounting units and tests of the approach of CFEBT, including a long-term theoretical and practical study of aspects of creative accounting.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings 16th Finance, Risk and Accounting Perspectives and 2nd Sustainable Finance and Impact Investing

ISBN

978-3-9503518-4-2

ISSN

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e-ISSN

neuvedeno

Number of pages

16

Pages from-to

1-16

Publisher name

ACRN Oxford Centre for interdisciplinary research

Place of publication

Oxford

Event location

Cambridge

Event date

Sep 25, 2017

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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