Fraud cases of the 21st century – a case study of Worldcom in the context of CFEBT approach

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F18%3A43898886" target="_blank" >RIV/60076658:12510/18:43898886 - 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

Fraud cases of the 21st century – a case study of Worldcom in the context of CFEBT approach

Original language description

The contribution aims to analyse aspects of the impact of manipulative accounting techniques on the selected case study of the worldwide known case Society of Worldcom, as subsequently identified by auditors and audit authorities after the fraud. The identified manipulations were subsequently subjected to an analysis of CFBET approach. The contribution has detected the risk of the impact of accounting errors and frauds representing one of the peaks CFEBT risk triangle accounting errors and frauds. It also calculated CFEBT M-score at three levels and identifies risks at accounting areas of provisions and overvalued own funds outside the operational area. The contribution presents the results of the CFEBT approach at three levels of the M-score and analyses significant discrepancies between the generation of earnings and an increase in cash flow during the observed periods. The CFEBT risk triangle was designed as a tool for detection, evaluation and management of the risk of accounting errors and frauds in circumstances of the Czech accounting standards and International Financial Reporting Standards (IFRS). The essential aim of the triangle is to reduce information asymmetry between authors and users of accounting records, or, in other words, to increase the quality of available information with respect to decision-making on the basis of available accounting information.

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

S - Specificky vyzkum na vysokych skolach

Publication year

2018

Confidentiality

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

Article name in the collection

Proceedings of the 12th International Scientific Conference INPROFORUM. Innovations, Enterprises, Regions and Management

ISBN

978-80-7394-726-2

ISSN

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e-ISSN

neuvedeno

Number of pages

6

Pages from-to

26-31

Publisher name

Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta

Place of publication

České Budějovice

Event location

České Budějovice

Event date

Nov 1, 2018

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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