An Analysis of the Securities and Exchange Commission's Accounting and Auditing Enforcement Releases PDF Download
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Author: Joan L. Schapiro
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 550
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Book Description
Author: Joan L. Schapiro
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 550
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Book Description
Author: Helen M. Roybark
Publisher:
ISBN:
Category :
Languages : en
Pages : 18
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Book Description
Accurate and timely financial reporting and disclosure is the cornerstone of market efficiency, capital formation, and economic growth. Fraudulent activities undermine public confidence and often lead to increased regulation. Fraudulent activities negatively impact organizations and their stockholders and diminish public confidence. This study adds to the literature on fraudulent activities by analyzing enforcement actions taken by the SEC in 2011. To that end, an analysis of 127 Accounting and Auditing Enforcement Releases (AAERs) issued by the U.S. Securities and Exchange Commission in 2011 is provided.
Author: United States. Securities and Exchange Commission
Publisher:
ISBN:
Category : Securities
Languages : en
Pages : 174
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Author: Robert Noah Moise
Publisher:
ISBN:
Category :
Languages : en
Pages : 398
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Book Description
Author:
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 520
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Book Description
Author: United States. Securities and Exchange Commission
Publisher:
ISBN:
Category : Accountants
Languages : en
Pages : 1208
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Book Description
Author: Irana Scott
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
In an attempt to predict financial statement fraud, prior accounting research has considered the characteristics of firms that manipulate their financial statements. The aforementioned studies have included various fraud types and often focus on accruals manipulations of the financial statements. In contrast, this study concentrates on a specific type of fraud, revenue manipulations, and the effect of this fraud type on the firm's cash flows. This is an important issue as fraud (and related cash flow) is directly related to the firm's ability to remain viable. This three-paper dissertation contributes to existing literature by separating revenue manipulations from other types of fraud and looking at cash flows instead of accruals as an indicator of the fraud. The first paper investigates cash flows from operations to see if they are abnormally low during the period when firms are fraudulently increasing revenues. The second paper examines whether management will decrease discretionary expenditures in order to increase the abnormally low cash flows and hide the manipulation. Asset sales are explored in the third paper. Management may sell assets when manipulating revenues since cash flows are low and external financing is harder to obtain. Results indicate that cash flows are abnormally low during a period of revenue manipulation, but discretionary expenditures are not decreased to hide the manipulation. In addition, asset sales are more likely when firms manipulate revenues. Taken together, this research suggests that revenue manipulation and cash flow analysis is important in the early detection of fraud, governed by the Securities and Exchange Commission. The results of this study can benefit auditors, investors, regulators, and creditors as they examine the quality of revenue recognition practices by management. The results could also support discussion of the value of the cash flow statement in predicting financial statement fraud. Accountants are currently debating the validity of the appropriate financial statement that best represents the firm's future operational viability. .
Author: Zhiyan Cao
Publisher:
ISBN:
Category :
Languages : en
Pages : 43
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Book Description
We examine the relationship between corporate governance and default risk for a sample of firms cited in the Securities and Exchange Commission's (SEC's) Accounting and Auditing Enforcement Releases (AAERs). Using hazard analysis of actual default incidence and OLS regressions of a continuous variable capturing a firm's “closeness to default,” we document changes in the relationships between various governance characteristics and default risk from the pre-AAER period to the post-AAER period. Specifically, smaller board size, greater board independence, greater gender diversity of the board, and lower concentration of institutional ownership are all shown to have a more favorable effect on lowering default risk in the post-AAER period relative to the pre-AAER period. Our comparative analysis of a group of firms with accounting restatements (but not cited in the AAERs) does not show similar changes in the relationships between the various corporate governance characteristics and default risk from the pre-restatement to the post-restatement period. This suggests that the regulatory sanctions experienced by AAER firms may have prompted creditor reevaluation of the firms' information environment and the perceived efficacy of various corporate governance mechanisms in mitigating default risk.
Author:
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 1418
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Book Description
Author: Sarah E. Bonner
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This study examines whether certain types of financial reporting fraud result in a higher likelihood of litigation against independent auditors. We expect that auditors are more likely to be judged responsible for failing to detect commonly occurring frauds or those that stem from fictitious transactions. We examine companies with SEC Accounting and Auditing Enforcement Releases and designate whether each fraud present in their financial statements is common and/or arises from fictitious transactions. We then examine whether these types of fraud are related to auditor litigation in analyses that control for various client, auditor and case characteristics. Our results provide some support for our two primary hypotheses-auditors are more likely to be sued when the financial statement frauds are of a common variety or when the frauds arise from fictitious transactions.
