2009
DOI: 10.2139/ssrn.1424004
|View full text |Cite
|
Sign up to set email alerts
|

Managing Audits to Manage Earnings: The Impact of Baiting Tactics on an Auditor's Ability to Uncover Earnings Management

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1

Citation Types

0
9
0
1

Year Published

2011
2011
2019
2019

Publication Types

Select...
6

Relationship

0
6

Authors

Journals

citations
Cited by 6 publications
(10 citation statements)
references
References 0 publications
0
9
0
1
Order By: Relevance
“…According to Healy & Wahlen (1998): "Earnings management occurs when managers use judgment in financial reporting ... to change financial reports to either mislead some stakeholders about the underlying economic performance of the company ...". In essence Luippold (2009) quoting from several other authors, states "Earnings management refers to financial reporting practices designed to achieve desired or favorable financial results (e.g., smoothing earnings, meeting earnings targets). Davidson et al (2005) in Kepsu (2012: 25-26) argues that earnings management is "... the process of taking deliberate steps within the constraints of generally accepted accounting principles to bring out the desired level of reported earnings".…”
Section: Earnings Managementmentioning
confidence: 99%
See 1 more Smart Citation
“…According to Healy & Wahlen (1998): "Earnings management occurs when managers use judgment in financial reporting ... to change financial reports to either mislead some stakeholders about the underlying economic performance of the company ...". In essence Luippold (2009) quoting from several other authors, states "Earnings management refers to financial reporting practices designed to achieve desired or favorable financial results (e.g., smoothing earnings, meeting earnings targets). Davidson et al (2005) in Kepsu (2012: 25-26) argues that earnings management is "... the process of taking deliberate steps within the constraints of generally accepted accounting principles to bring out the desired level of reported earnings".…”
Section: Earnings Managementmentioning
confidence: 99%
“…But they also worry about the manipulation of financial statements that often occurs, because the entity manager has more knowledge and information than the owner so there is an incentive to behave opportunistically by intervening financial statements to achieve desired targets (Spohr, 2005;Healy & Wahlen, 1998;Weil, 2009). Earnings management behavior is contrary to the concept of faithful representation, one of the fundamental qualitative characteristics in financial reporting (Lerach, 2004;Luippold, 2009;Shuli, 2011;IASB, 2010). The consequences of earnings management are very detrimental, especially to the reliability, business reputation, the accounting profession, auditors, which ultimately lose investor and capital market confidence (Gerald, 2008;McEnroe, 2007).…”
Section: Introductionmentioning
confidence: 99%
“…There have been a limited number of studies focusing on audit management (Luippold, 2009;Luippold et al, 2015). Managing an audit can be done through different 240 JAEE 9,2 means, like baiting tactics or diverting auditors, providing incomplete information and framing financial information.…”
Section: Audit Managementmentioning
confidence: 99%
“…Cognitive capacity is limited for humans as distractions take up some parts of cognitive capacity and make auditors to come to a faster solution (Luippold, 2009). Distractions can affect auditors' judgment by activating their need for closure (Bailey et al, 2005) and cause them to rely on less information in making judgments (Bailey et al, 2011;Vermeir and Van Kenhove, 2005).…”
Section: Need For Closure Of Auditorsmentioning
confidence: 99%
“…‫ذ‬ ‫ذ‬ ‫زو‬ ‫ز‬ ‫بلانيذياس‬ ‫زر‬ ‫ز‬ ‫ذب‬ ‫ذأب‬ ‫ز‬ ‫ز‬ ‫ىل‬ ‫ي‬ ‫ذ‬ ‫ز‬ ‫ز‬ ‫اج‬ ‫كذب‬ ‫ز‬ ‫ز‬ ‫زعحذاج‬ ‫ز‬ ‫ذ‬ ‫ز‬ ‫ز‬ ‫،ذك‬ ‫ت‬ ‫بهبريب‬ ‫ذ‬ ‫ذ‬ ‫زعا‬ ‫ز‬ ‫زأتذمل‬ ‫ز‬ ‫زرذاس‬ ‫ز‬ ‫جظ‬ ‫ابحذ‬ ‫تذبأل‬ ‫ريب‬ ‫واذ‬ ‫ز‬ ‫ز‬ ‫حت‬ ‫ذ‬ ‫ا‬ ‫ز‬ ‫ب‬ Collins 2007;Earnings Management, 2008 ( Hayn, 1995;Subramanyam, 1996;Bernard and Skinner, 1996;and Kasanen et el. 1996 MacDonald, 2002;Henry, 2004;Farber, 2005;Hilzenrath, 2007;Collins 2007;Mavin, 2007;and Jones et al, 2008…”
unclassified