Political connections, financial reporting and auditing: Survey of the empirical literature

Habib, Ahsan; Ranasinghe, Dinithi; Muhammadi, Abdul Haris; Islam, Ainul

doi:10.1016/j.intaccaudtax.2018.05.002

Cited by 43 publications

(45 citation statements)

References 85 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Many cases of fraud in financial reports are in the form of deliberate misstatement, inflating numbers, and manipulation of income, which have multiple purposes (Zager et al 2016). This fraud is mostly carried out by management who truly understand the condition of the company (Habib et al 2018;Chychyla et al 2020). There are various ways to fraudulently manipulate financial statements, including unreasonable revenue recognition, hidden costs for certain purposes, and asset valuation that is not in accordance with IFRS (West and Bhattacharya 2016; Chychyla et al 2020).…”

Section: Fraudulent Financial Statementsmentioning

confidence: 99%

“…Misappropriation of organizational assets and misstatement in revenue recognition is the most common means of fraudulent behavior. This includes revenue that is recognized but fictitious, premature income that is currently recognized, and incorrect income when adjusted (Zager et al 2016;Habib et al 2018;West and Bhattacharya, 2016). However, creating fictitious sales appears to be the most common method of manipulating income (El-Helaly et al 2018;Zager et al 2016).…”

Section: Fraudulent Financial Statementsmentioning

confidence: 99%

See 1 more Smart Citation

Financial intelligence: Financial statement fraud in Indonesia

Ikbal¹,

Irwansyah²,

Paminto³

et al. 2020

JISIB

View full text Add to dashboard Cite

Indonesia is currently in an honesty crisis, especially in financial governance, bothin government and private institutions. Our study uses the concept of financial intelligence toidentify and collect information related to financial affairs in an organization. We use theopinions of 76 auditors regarding various fraudulent attempts, both with fraudulent financialstatements and other corrupt practices in organizations in Indonesia. Our important finding isthat small companies are more likely to commit fraud due to weak supervisors than listed publiccompanies. This is also more likely than family-owned companies and government levelorganizations. It was indicated by some respondents that local government level organizationswith weak supervision are more likely to commit fraud than local governments with closesupervision from urban communities. The results of the non-parametric relationship analysisshow that although there is a possibility that the more experienced the auditor is, the more ablethey are to detect fraud and manipulation in the organization, the relationship is relativelyweak. Other findings also show that auditors who have a CFE certificate find it easier to findfraud in the company.

show abstract

Section: Fraudulent Financial Statementsmentioning

confidence: 99%

Section: Fraudulent Financial Statementsmentioning

confidence: 99%

Financial intelligence: Financial statement fraud in Indonesia

Ikbal¹,

Irwansyah²,

Paminto³

et al. 2020

JISIB

View full text Add to dashboard Cite

show abstract

“…Penelitian ini berbeda dengan penelitian sebelumnya yang dilakukan Utamaningsi (2019); Habib et al, (2018); Ariningrum & Diyanty, (2017); dan Yao et al (2015) dimana dalam penelitian ini terdapat variabel koneksi politik sebagai variabel moderating antara fair value noncurrent asset dengan fee audit berda-sarkan penelitian Setyawati dan Apandi (2019). Manfaat yang didapat dari perusahaan yang memiliki koneksi politik diantaranya adalah lebih mudah mendapat proyek dari pemerintah, membayar beban pajak lebih sedikit, dan pemerintah lebih mudah melakukan bailout saat perusahaan mengalami kesulitan keuangan.…”

Section: Pendahuluanunclassified

Fair Value Non-Current Asset, Koneksi Politik, dan Audit Fee

Anggriani

Yazid²,

Taqi³

2021

AFRE

View full text Add to dashboard Cite

This study aims to determine the effect of fair value non-current asset on the determination of audit fee and to know moderating effect of political connection between fair value non -current asset and audit fee in financial companies listed in Indonesia Stock Exchange. The method of research analysis used in this research is descriptive method. Population in this research is financial companies listed in Indonesia Stock Exchange with sample of 25 companies by using purposive sampling method in period 2016-2018. The data used is secondary data collected by documentation technique. In analyzing the data, this study used a test tool of ordinary least square (OLS) analysis and moderation regression analysis (MRA). The result of this research indicates that fair value non-current asset influence audit fee and this research show that the political connection can’t moderate of fair value non-current asset toward audit fee. DOI: https://doi.org/10.26905/afr.v3i2.4708

show abstract

“…Therefore, 36 pieces of relevant literature were analyzed to obtain favorable evidence to prove the relationship between compensation structure and corruption degree in public official's management [5]. Habib et al (2018) pointed out that there was a certain relationship among political relationship, financial report, and audit. In the process of investigation and research, these empirical data confirmed that the quality of financial report of politically connected companies could provide strong evidence [6].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Habib et al (2018) pointed out that there was a certain relationship among political relationship, financial report, and audit. In the process of investigation and research, these empirical data confirmed that the quality of financial report of politically connected companies could provide strong evidence [6]. Paterson et al (2019) analyzed the criticality of anti-corruption policies and practices, explored corruption issues from the perspectives of transparency, audit, regulatory disclosure, governance, investor protection, and policies related to anti-corruption initiatives, and finally found that the adverse consequences of these behaviors would lead to human suffering and cost loss [7].…”

Section: Literature Reviewmentioning

confidence: 99%