fraudulent financial reporting

• Increased Motivation for Whistleblowing

The current economic climate has greatly helped to create and sustain an environment conducive to fraudulent financial reporting. As part of its emphasis on enforcement and investor protection, the Securities & Exchange Commission (SEC) has reported a significant increase in 2010 in both the number and the size of fraud cases. Now, provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act, eg, Title IX -- Investor Protection and Securities Reform Act of 2010, and new incentives contained in amendments to the US Federal Sentencing Guidelines are likely to increase the motivation for whistleblowing activities and subsequent assertions of fraud. The most important whistleblower motivator is the authority granted to the SEC for making bounty payments to whistleblowers....

• Strategic Finance
• Vol. 92 Nbr. 5, November 2010

• Reporting of Fraudulent Financial Instruments

• FR, January 27, 2010
• Rules
• Federal Housing Enterprise Oversight Office

• Reporting of Fraudulent Financial Instruments

• FR, June 17, 2009
• Proposed rules
• Federal Housing Enterprise Oversight Office

• Fraudulent Financial Reporting

The equity and credit markets (capital markets) in the United States have long been considered to be among the most efficient in the...

• Encyclopedia of Business and Finance
• A-I

• Weak-Form Market Inefficiency and Fraudulent Financial Reporting

The purpose of a study is to determine if the security prices of firms that are revealed to have engaged in fraudulent financial reporting (FFR) are weak-form inefficient. Incentives of institutional investors to incur information processing costs that can reveal biases (including fraud) in reported accounting information provide a rationale for hypothesizing weak-form inefficiency for FFR firms. Results support the hypotheses that security prices of firms accused of FFR are weak-form inefficient both before and after the public announcement of fraud. Additionally, results suggest the frequency of weak-form inefficiency for fraud firms is significantly greater than that of nonfraud firms. Since results suggest that FFR firms systematically fail the weak-form of market efficiency before ...

• Allied Academies International Conference. Academy of Accounting and Financial Studies. Proceedings
• Vol. 14 Nbr. 1, January 2009

• 12 CFR 1233.2 - Definitions.

...PART 1233: REPORTING OF FRAUDULENT FINANCIAL INSTRUMENTS. 1233.2 - Def...

• Code of Federal Regulations - Title 12: Banks and Banking

• The three Cs of Fraudulent Financial Reporting.

Assessing an organization's conditions, corporate structure, and the choices it makes can help reveal the motivations, opportunities, and rationalizat...

• Internal Auditor
• Vol. 59 Nbr. 5, October 2002

• Accounting for Pensions and Other Postretirement Benefit Plans and the Use of Accounting Estimates and Changes in Estimates: An Ethical Perspective

Ethical financial reporting not only requires the absence of fraudulent behavior but also that entities and their accountants choose estimates that best reflect the underlying economic events. The FASB recently issued Statement of Financial Accounting Standards No. 158 "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans," which requires that companies with underfunded plans recognize the underfunded portion on their balance sheets (FASB, 2006). For some entities the effect of this provision is quite significant. Estimates chosen for the plans' discount rates and rates of return on plan assets can significantly affect the funding status and can be used to manage financial statement results. The primary focus of this case is to examine the ethical dilemmas ac...

• Journal of the International Academy for Case Studies
• Vol. 15 Nbr. 1, January - December 2009

• Raise the red flag: a recent study examines which SAS No. 99 indicators are more effective in detecting fraudulent financial reporting.

SINCE ITS INTRODUCTION IN 2002, STATEMENT ON Auditing Standards (SAS) No. 99: Consideration of Fraud in a Financial Statement Audit has raised expecta...

• Internal Auditor
• Vol. 62 Nbr. 5, October 2005

• COSO's new fraud study: what it means for CPAs.

Committee of Sponsoring Organizations of the Treadway Commission; fraudulent financial reporting of public companies

• Journal of Accountancy
• Vol. 187 Nbr. 5, May 1999