FRAUD RISK MANAGEMENT-AN EFFECTIVE ANTI-FRAUD SYSTEM AND A DECISION-MAKING TOOL FOR USERS OF FINANCIAL STATEMENTS

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

FRAUD RISK MANAGEMENT-AN EFFECTIVE ANTI-FRAUD SYSTEM AND A DECISION-MAKING TOOL FOR USERS OF FINANCIAL STATEMENTS

Popis výsledku v původním jazyce

The CFEBT risk triangle is applied in form of a case study aimed at risk detection of occurrence of accounting errors and frauds for a selected sample of companies. A detailed analysis of a risk of impact of accounting errors and frauds is illustrated in the case study of an accounting unit chosen from the sample of companies evaluated. The CFEBT risk triangle was designed as an analytical tool for detection and management of accounting errors and frauds in the context of Czech accounting standards and International Financial Reporting Standards (IFRS) and as a tool for reduction of information asymmetry between creators and users of accounting reports. The risk triangle of accounting errors and frauds may be used for various groups of users of financial statements to enable these users to make decisions at individual levels of access to accounting information. Future research into the CFEBT risk triangle focuses on performance of complex analyses for individual types of business activities of small and middle-sized companies in the context of Czech accounting standards and IFRS. The objective of the present monograph is to evaluate the risk of accounting errors and frauds in case studies of selected small companies. Generally speaking, the accounting unit presents no risk in the context of Czech accounting standards with the view of risk detection of causes and impacts of accounting errors. However, specific conclusions of the analysis may be used for reducing any information asymmetry and decision-making of external and internal users of financial statements according to the level of their access to accounting information. In particular, auditors may focus their attention to examining the adequacy of generating and using of reserves and adjustments, in connection with payments of dividends to shareholders, and evaluating whether creative accounting methods (such as Big Bath) have been applied intentionally to intensify a loss in the given period and to enable a subsequent rapid increase in earnings, chiefly for the purpose of payment of unreasonable dividends for profit-earning accounting periods. Moreover, potential investors and owners may ask similar questions on the basis of results obtained by the risk analysis. For the needs of effective management, the areas, identified in the above manner, may be instrumental for improving the quality of accounting management and informative capacity of accounting with regard to evaluating the financial health of a business corporation. Efficiency of internal control systems is tested within the third vertex (risk factor) of the proposed CFEBT risk triangle of accounting errors and frauds, which, however, is not addressed in the present monograph. We believe that the risk triangle of accounting errors and frauds may be used on various decision-making levels of users of financial statements with respect to their decision-making process. In addition, the evaluation of this complex tool may reduce the information asymmetry vis-?-vis authors and users of reported accounting outputs such that users are able to make a best-quality decision based on accounting data available to them.

Název v anglickém jazyce

FRAUD RISK MANAGEMENT-AN EFFECTIVE ANTI-FRAUD SYSTEM AND A DECISION-MAKING TOOL FOR USERS OF FINANCIAL STATEMENTS

Popis výsledku anglicky

The CFEBT risk triangle is applied in form of a case study aimed at risk detection of occurrence of accounting errors and frauds for a selected sample of companies. A detailed analysis of a risk of impact of accounting errors and frauds is illustrated in the case study of an accounting unit chosen from the sample of companies evaluated. The CFEBT risk triangle was designed as an analytical tool for detection and management of accounting errors and frauds in the context of Czech accounting standards and International Financial Reporting Standards (IFRS) and as a tool for reduction of information asymmetry between creators and users of accounting reports. The risk triangle of accounting errors and frauds may be used for various groups of users of financial statements to enable these users to make decisions at individual levels of access to accounting information. Future research into the CFEBT risk triangle focuses on performance of complex analyses for individual types of business activities of small and middle-sized companies in the context of Czech accounting standards and IFRS. The objective of the present monograph is to evaluate the risk of accounting errors and frauds in case studies of selected small companies. Generally speaking, the accounting unit presents no risk in the context of Czech accounting standards with the view of risk detection of causes and impacts of accounting errors. However, specific conclusions of the analysis may be used for reducing any information asymmetry and decision-making of external and internal users of financial statements according to the level of their access to accounting information. In particular, auditors may focus their attention to examining the adequacy of generating and using of reserves and adjustments, in connection with payments of dividends to shareholders, and evaluating whether creative accounting methods (such as Big Bath) have been applied intentionally to intensify a loss in the given period and to enable a subsequent rapid increase in earnings, chiefly for the purpose of payment of unreasonable dividends for profit-earning accounting periods. Moreover, potential investors and owners may ask similar questions on the basis of results obtained by the risk analysis. For the needs of effective management, the areas, identified in the above manner, may be instrumental for improving the quality of accounting management and informative capacity of accounting with regard to evaluating the financial health of a business corporation. Efficiency of internal control systems is tested within the third vertex (risk factor) of the proposed CFEBT risk triangle of accounting errors and frauds, which, however, is not addressed in the present monograph. We believe that the risk triangle of accounting errors and frauds may be used on various decision-making levels of users of financial statements with respect to their decision-making process. In addition, the evaluation of this complex tool may reduce the information asymmetry vis-?-vis authors and users of reported accounting outputs such that users are able to make a best-quality decision based on accounting data available 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

978-80-263-1367-0

Počet stran knihy

112

Název nakladatele

Tribun EU

Místo vydání

Brno

Kód UT WoS knihy

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