CFEBT Method as a Tool of Decreasing Information Asymmetry in Accounting and as a Part of Internal Controlling Systems

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F17%3A43896344" target="_blank" >RIV/60076658:12510/17:43896344 - 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 Decreasing Information Asymmetry in Accounting and as a Part of Internal Controlling Systems

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 honest view of accounting including accounting mistakes 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 window 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 accounting regulations and international standards IFRS. The following paper further analyses 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-discretion accruality in comparison with the results of Altman´s model of financial health of a business corporation.

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

Liberec Economic Forum 2017

ISBN

978-80-7494-349-2

ISSN

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e-ISSN

neuvedeno

Number of pages

11

Pages from-to

319-329

Publisher name

Technická univerzita v Liberci, Ekonomická fakulta

Place of publication

Liberec

Event location

Liberec

Event date

Sep 11, 2017

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000426486500036