Q-DMFCA AND CFEBT METHODS AS POSSIBILITIES OF INCORRECTNESS IDENTIFICATION AND FRAUD IN ACCOUNTING OF A FIRM

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Q-DMFCA AND CFEBT METHODS AS POSSIBILITIES OF INCORRECTNESS IDENTIFICATION AND FRAUD IN ACCOUNTING OF A FIRM

Popis výsledku v původním jazyce

The quality of reported accounting data as well as the quality and behaviour of their users finally influences the efficiency of an enterprise´s management. Its assessment could therefore be changed as well. To identify creative accounting and fraud, several methods and tools are used. We present our proposal of the balance mode Q-DMFCA (Quick Detection Model (Material) Flow (Fraud) Cost Accounting) based on environmental accounting and MFCA (Material Flow Cost Accounting) as its method. The following balance areas are included: material, financial and legislative. Using the SWOT analysis, the strengths and weaknesses of the model were assessed based on its possible use within a production and business company, or firm. Its possible usage for the detection of some creative accounting techniques was also assessed. The model is further developed for its specific use in practice and theoretical aspects of risk are processed as a quick test without the need for mathematical tools. The next possibility of how to identify some methods of creative accounting is the CFEBT model. The identification model CFEBT was based on the hypothesis maintaining that there is a close relationship between the economic result of accounting and cash-flow accrual in a period of five years. Results of data analysed in the CFEBT model revealed that if an accounting entity adheres to a true and fair representation of its accounting in the context of Czech accounting standards, then it is not identified as creative accounting. This paper, in the aggregate of accounting economic results and aggregate of cash-flow accruals for five years, should not deviate from the determined limit of significance level (materiality) for the given accounting unit (5 to 10%). The testing hypothesis of the CFEBT model assesses whether there is a close relation of a loss and an increase in the cash flow in 5 year?s time; whether the sum of the amounts for 5 year?s time would reveal the same results respectively. We believe that the CFEBT model may be used by auditors for testing financial statements as a detailed test on the basis of which the risk of an accounting fraud may be identified. Moreover, it may be applied by all users of financial statements who are to consider the issue of reliability of financial statements submitted to them.

Název v anglickém jazyce

Q-DMFCA AND CFEBT METHODS AS POSSIBILITIES OF INCORRECTNESS IDENTIFICATION AND FRAUD IN ACCOUNTING OF A FIRM

Popis výsledku anglicky

The quality of reported accounting data as well as the quality and behaviour of their users finally influences the efficiency of an enterprise´s management. Its assessment could therefore be changed as well. To identify creative accounting and fraud, several methods and tools are used. We present our proposal of the balance mode Q-DMFCA (Quick Detection Model (Material) Flow (Fraud) Cost Accounting) based on environmental accounting and MFCA (Material Flow Cost Accounting) as its method. The following balance areas are included: material, financial and legislative. Using the SWOT analysis, the strengths and weaknesses of the model were assessed based on its possible use within a production and business company, or firm. Its possible usage for the detection of some creative accounting techniques was also assessed. The model is further developed for its specific use in practice and theoretical aspects of risk are processed as a quick test without the need for mathematical tools. The next possibility of how to identify some methods of creative accounting is the CFEBT model. The identification model CFEBT was based on the hypothesis maintaining that there is a close relationship between the economic result of accounting and cash-flow accrual in a period of five years. Results of data analysed in the CFEBT model revealed that if an accounting entity adheres to a true and fair representation of its accounting in the context of Czech accounting standards, then it is not identified as creative accounting. This paper, in the aggregate of accounting economic results and aggregate of cash-flow accruals for five years, should not deviate from the determined limit of significance level (materiality) for the given accounting unit (5 to 10%). The testing hypothesis of the CFEBT model assesses whether there is a close relation of a loss and an increase in the cash flow in 5 year?s time; whether the sum of the amounts for 5 year?s time would reveal the same results respectively. We believe that the CFEBT model may be used by auditors for testing financial statements as a detailed test on the basis of which the risk of an accounting fraud may be identified. Moreover, it may be applied by all users of financial statements who are to consider the issue of reliability of financial statements submitted to them.

Druh

B - Odborná kniha

CEP obor

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OECD FORD obor

50205 - Accounting

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2017

Kód důvěrnosti údajů

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

ISBN

978-80-7394-643-2

Počet stran knihy

110

Název nakladatele

Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta

Místo vydání

České Budějovice

Kód UT WoS knihy

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