Disclosure of allegedly illegal corporate activities and information risk

Cheng, Xiaoyan; Crabtree, Aaron D.; Smith, David B.

doi:10.1016/j.adiac.2009.08.001

Cited by 4 publications

(1 citation statement)

References 28 publications

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“…Most of the times, the frauds on financial reporting are caused by the managers (Cheng et al, 2009), the damage value is considerable, and their objective is to forger the financial standings, in order to deceive investors and partners regarding the reliability of the company. The frauds committed by managers aim to distort the reality synthesized in the financial standings either by underlining an exaggerated result, or by presenting an improved balance or combinations of the two methods (Singleton and Singleton, 2010).…”

Section: Theoretical Perspectives On Financial Fraudmentioning

confidence: 99%

Empirical Study on the Assessment of the Auditor’s Responsibility Regarding the Risk of Financial Fraud

Robu¹,

Chersan²,

Mironiuc³

et al. 2012

CIBIMA

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The recent famous financial frauds have demonstrated that in many cases the auditor was either responsible for or an accomplice in their manifestation. Thus, the auditor plays an important role in ensuring a true and fair view regarding the financial position and performance of the company. International standards on auditing indicate that the financial auditor's main objective is to serve the stakeholders' interests by expressing an independent, objective and competent opinion regarding the accuracy of information from financial statements. Also, according to audit standards, the auditor has the responsibility to assess fraud risk and how it could influence his opinion. The purpose of this study is to test if there is a connection between the affiliation of the client-company to an auditor who is member of Big4 and the incidence of financial fraud. The research results indicate the existence of a company profile that is defrauded or not defrauded. Starting from a series of factors associated to the financial auditor, a deterministic model was proposed in the study for estimating the probability of being defrauded. For the validation of the working hypotheses, a sample consisting of 200 defrauded and not defrauded companies was selected, quoted on New York Stock Exchange. Research results were obtained by processing the data with SPSS 19.0.

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Section: Theoretical Perspectives On Financial Fraudmentioning

confidence: 99%

Empirical Study on the Assessment of the Auditor’s Responsibility Regarding the Risk of Financial Fraud

Robu¹,

Chersan²,

Mironiuc³

et al. 2012

CIBIMA

View full text Add to dashboard Cite

show abstract

The foreign corrupt practices act: How investors respond when violation severity and corresponding penalty (mis)match

Olczak

2021

Advances in Accounting

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Disclosure of sales compensations and product recommendations

Tseng

Yu²

2019

MIP

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Purpose The purpose of this paper is to examine the influence of disclosure of sales compensations on insurance brokers’ intention to make inappropriate product recommendations. Design/methodology/approach This research examines the insurance brokers’ intention to make inappropriate product recommendations through an application of the theory of planned behavior. Surveys are used as the research instrument, and the hypotheses are tested with a between-subjects experimental design. One case of mandatory disclosure and one case of non-mandatory disclosure are compared in the research. Findings The results indicate that the disclosure of sales compensations is significantly associated with the subjective norms from the official authority and perceived behavioral control (PBC). The results of this study also indicate that, when the disclosure is mandatory, the PBC has a stronger effect on the insurance brokers’ intention to make biased product recommendations than dose the attitude and subjective norms. When the disclosure is non-mandatory, however, the subjective norms have a stronger effect on the insurance brokers’ intention. Originality/value The impacts of compensation disclosures on the financial professionals’ product recommendations have been less examined. This study could make a contribution to the literature by providing some empirical observations from the views of Taiwan’s life insurance brokers.

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Disclosure of allegedly illegal corporate activities and information risk

Cited by 4 publications

References 28 publications

Empirical Study on the Assessment of the Auditor’s Responsibility Regarding the Risk of Financial Fraud

Empirical Study on the Assessment of the Auditor’s Responsibility Regarding the Risk of Financial Fraud

The foreign corrupt practices act: How investors respond when violation severity and corresponding penalty (mis)match

Disclosure of sales compensations and product recommendations

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