The purpose of this study was to examine the potential for fraudulent financial reporting using the fraud hexagon theory factors such as stimulus (financial target, financial stability, and external pressure), capability (change in director), collusion (total board of commissioners who have...

The aim of manuscript is to analyze and identify determinants of honest accounting errors leading to financial restatements based on data from SEC database and from annual reports. Reason for this study is that accounting errors are expensive for companies that need to change already published...

This study aims to detect fraudulent financial reporting using hexagon fraud analysis, including seven factors: financial stability, external pressures, ineffective monitoring, auditor changes, change in director, arrogance, and collusion. The subject of this research is a public company...

Partial observability is a prominent feature of accounting fraud. Not only the act of committing fraud is not directly observable, but the detected frauds are often revealed to the public with substantial time delays. In this article, we specify an underlying fraud data generating process that...

The information provided by blockchains of cryptocurrencies is immense and diverse. Blockchain information are represented by networks, the transaction network and the user network, approximated by the entity network. We review heuristics for constructing the entity network out of the...

This study examines how Dr Markus Braun, CEO of Wirecard, constructed legitimation when faced with allegations from financial news reporters. It contributes to research into the legitimation strategies deployed by CEOs to construct a certain truth, justify corporate values and reassure...

Auditors take over a crucial role in corporate governance and capital markets. A main contribution of auditors is to enhance firms ‘cost of capital by fostering trust among public and private investors. Moreover, auditors have to discipline corporate insiders to avoid misbehavior and prevent...

This study is designed to investigate the role of proactive forensic auditing techniques in preventing fraudulent activities among NGOs in the eThekwini region. The population of this study comprised 87 knowledgeable staff in the field of fraud risk management and auditing selected from 30 NGOs....

This study examines whether the delegated monitoring of main banks effectively decreases severe agency problems. For example, this includes accounting fraud in bank-dominated corporate governance. In this context, the fraud triangle specifies the three main factors of opportunity, incentive, and...

There have been many advances in the accounting literature that focus on theories and methods for detecting the occurrence of corporate financial statement fraud. Many tools have been developed to detect the occurrence of corporate financial statement fraud, particularly using various...

Specialty literature and solutions in the market have been focusing in the last decade on collecting and aggregating significant amounts of data about transactions (and user behavior) and on refining the algorithms used to identify fraud. At the same time, legislation in the European Union has...

Tax avoidance is one of the most frequent reasons for which companies tend to resort to creative accounting techniques. The purpose of the study is to identify which of the eight-variables from the Beneish influences the most or least the outcome of the final score, as a percent, by developing a...

Most accounting studies use only public enforcement actions (SEC cases) to measure accounting fraud. However, private cases (securities class actions) also play an important enforcement role. We discuss the legal standards and processes for both public and private enforcement regimes, emphasize...

We provide theory and experimental evidence that, in cases of undetected fraud, professional evaluators (i.e. experienced auditors) do not evaluate auditor performance any more favorably when the auditor more accurately assessed a heightened risk of fraud. This occurs despite professional...

In this paper we investigate the EM-estimator of the model by Caudill et al. (2005). The purpose of the model is to identify items, e.g. individuals or companies, that are wrongly classified as honest; an example of this is the detection of tax evasion. Normally, we observe two groups of items,...

CHAPTER 1: Introduction to Cryptocurrency and Digital Asset Fraud and Crime -- CHAPTER 2: Cryptocurrency Exchange Fraud and Hacks: Part 1 (2022 – 2019) -- CHAPTER 3: Cryptocurrency Exchange Fraud and Hacks: Part 2 (2018 – 2012) -- CHAPTER 4: Cryptocurrency Ponzi Schemes -- CHAPTER 5:...

This study investigates whether firms with fraudulent financial reporting time their earnings announcements strategically and finds that fraudulent firms are more likely to disclose their earnings in the after-market hours during their fraud periods to postpone fraud detection. Cross-sectional...

This quantitative research was conducted to detect the possibility of earnings manipulation by listed companies on the Ghana Stock Exchange, determine which company size engages more in creative accounting and find out whether there is a correlation between share price and earnings manipulation....

Prior studies examine how fraud firms manipulate accruals in order to overstate their earnings. We document that some fraud firms also manipulate operating cash flows in order to fraudulently overstate earnings. More importantly, we predict that these earnings-cash flow frauds (ECF) are harder...

Objective - The massive and broad impact caused by fraud has made it widely discussed by researchers. Several theories have been developed to explain the cause of fraud. The most recent theory that attempts to explain fraud is pentagon fraud. This study attempts to explain the effect of pentagon...

I study how regulators' self-interest affects the transparency of their enforcement regimes and, as a result, misreporting by overseen firms. I use the revolving door from government to the private sector as a natural, commonly-occurring setting that captures self-interest. In this setting I...

This paper examines the effects of executive compensation and potential for earnings management on the incidence of shareholder class action lawsuits and their outcomes. Although damage measurement factors,managerial option intensity, and earnings management all significantly affect the...