Accounting Scandals and Eye-Catching Frauds: USA-Japan Comparison by Considering the Role of Auditing

Abstract

<em>It is necessary to provide confidence to financial markets, so that they can function and develop in a successful manner. Inaccurate financial statements subject to fraud which initiate accounting scandals make it difficult for financial statements users to make the right decision. In order to assure transparency, reliability, objectively and standardization, financial statements are audited by independent auditors. However, the accounting scandals experienced in the 21st century has shown that, independent auditing firms do not always fulfill their duties completely. For this reason, legislation was introduced in United States of America (USA), Europe and Asian countries, including Japan. Public oversight bodies were also established. But despite the introduced laws, regulations, arrangements and public oversight bodies, the risk of accounting scandals still continues. This is partly due to the fact that laws, regulations, arrangements and introduction of public oversight bodies are delayed and they are not completely meeting the expectations of changing market conditions. Effective pro-active policies and actions are not in order as well. This paper investigates accounting scandals and eye-cathing frauds by making a comparison between USA and Japan, while considering and discussing the role of auditing.</em>

Earnings manipulation behavior in the banking industry of Bangladesh: the strategical implication of Beneish M-score model

“…Using the Analytic Hierarchy Process (AHP) model, the authors concluded that lowly performance, external financing necessity, board members' inefficiency, financial anguish and competition provoke fraud. Kizil and Kasbasi (2018) commented that fraudulent financial information reduces the possibility of the right investment decision from the users of financial information.…”

Forensic accounting education and connection to practice summary

“…Me đu tim, pre va ru ni je mo gu će u pot pu no sti ele mi ni sa ti, ali se u zna čaj noj me ri mo že uti ca ti na nje no sma nje nje. Te o ri ja pre va re je evo lu i ra la to kom pro te klog ve ka ši re ći fo kus na dru ga či je aspek te pre va re, kao što je pre va rant ko ji je iz vršio de lo pre va re, spe ci fič na vr sta ak tiv no sti pre va re i in ter ne kon tro le i ak tiv no sti za sma nje nje ri zi ka ko ji se ko ri ste za od vra ća nje od pre va ra nih ak tiv no sti (10,(17)(18)(19)(20)(21)(22)(23). Pre va ra se de ša va u or ga ni za ci ja ma, bez ob zi ra na to da li je u pi ta nju ve li ka ili ma la or ga ni za ci ja.…”

“…Neo p hodno je pru ži ti po ve re nje fi nan sij skim tr žiš ti ma ka ko bi mo gla da se raz vi ja ju i us peš no funk ci o ni šu. Ne tač ni fi nan sij ski iz veš ta ji pod lo žni pre va ri ko ji pokreću ra ču no vod stve ne skan da le oteža va ju ko ri sni ci ma fi nan sij skih iz veš ta ja da do ne su pra vu odlu ku i mo gu do ve sti do ve li kih gu bi ta ka ka pi ta la in ve sti to ra ili po ve ri la ca (19,123). U tom kon tek stu, va žno je is ta ći zna čaj ko ji ima ju ne za vi sni (eks ter ni) re vi zo ri od ko jih se oče ku je uve re nje u tran spa rent nost, po u zda nost i objek tiv nost fi nan sij skih iz vešta ja.…”

Auditing Techniques to Avoid Cost Accounting Frauds

“…al., 2019). Kızıl and Kaşbaşı (2018) (Kızıl and Kaşbaşı, 2018). Kızıl and Doğan's study (2017) titled ""Audit Techniques for Protecting against Cyber Attacks: A Bilateral Approach of Case Studies and Interview" discussed issues such as risk based audit, Information Technologies (IT) audit with COBIT, integrated audit, corporate governance, the COSO framework, big data in auditing, cloud technologies, internet of things (IOTs), data fraud and theft, classification of data risks, encryption of data, data analytics and log records, as well as auditing and ethics relationship.…”