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This paper investigates whether the greater flexibility of International Financial Reporting Standards (IFRS) in contrast to accounting models that were used before those standards became mandatory meant a significant change in the magnitude of accruals recognized in the accounting income.

18,126 observations are analyzed on 1,881 non-financial companies in 19 European countries in 2000–2012. A difference-in-differences regression method is used. The treatment sample includes companies that were required to adopt IFRS as from the 2005 fiscal year, while the control sample comprises companies that voluntarily adopted IFRS prior to 2005.

Compared to prior accounting standards, the mandatory adoption of IFRS increased the absolute value of accruals. This result is seen only in those companies where the magnitude of accruals is negative. The observed effect is independent of the degree of similarity between IFRS and prior standards.

This paper complements the literature analyzing the effect of IFRS on the financial statements and on the financial-economic indicators of companies. It analyzes the component of accounting income that is most sensitive to the use of professional judgment: accruals. Focusing on observed accruals helps avoid an error in measurement that can be made when working with the discretionary component of accruals. Additionally, a longer time horizon than in previous studies is considered.

Este trabajo investiga si la mayor flexibilidad de las Normas Internacionales de Información Financiera (NIIF) respecto a los modelos contables que se empleaban antes de que dichas normas fueran obligatorias supuso un cambio significativo de la magnitud de los ajustes por devengo reconocidos en el resultado contable.

Se analizan 18.126 observaciones de 1.881 empresas no financieras de 19 países europeos en 2000–2012. Se utiliza la metodología de regresión del tipo diferencia en diferencias. La muestra de tratamiento incluye empresas que adoptaron obligatoriamente las NIIF, lo que tuvo lugar en el ejercicio contable 2005, y la muestra de control está compuesta por empresas que las adoptaron voluntariamente antes de 2005.

Con respecto a las normas contables previas, la adopción obligatoria de las NIIF incrementó el valor absoluto de los ajustes por devengo. Este resultado se observa solamente en el grupo de empresas donde la magnitud de los devengos es negativa. El efecto observado es independiente del grado de similitud entre las NIIF y las normas previas.

Este trabajo complementa la literatura que analiza el efecto de las NIIF sobre los estados financieros y los indicadores económico-financieros de las empresas, analizando el componente del resultado contable más sensible al uso del juicio profesional: los devengos. El hecho de centrarse en los devengos observados permite evitar el error de medición en el que se incurre cuando se trabaja con el componente discrecional de los mismos. Adicionalmente, se analiza un horizonte temporal más amplio que en trabajos previos.

This study aims to present the results of an experimental evaluation of low (M30), mid (M40) and high (M50) grade self-compacting concrete (SCC) with three nominal maximum aggregate sizes (NMAS), namely, 20 mm, 16 mm and 12.5 mm, with Bailey gradation (BG) in comparison with Indian standard gradation (ISG).

This study was conducted in a laboratory by testing the characteristics of fresh and hardened properties of self-compacting concrete.

Rheological and mechanical properties of SCC were evaluated in detail and according to the results, a concrete sample containing lower NMAS with BG demonstrated improvement in modulus of elasticity and compressive strength, while improving the rheological properties as well. Meanwhile, SCC demonstrated poor performance in split tensile and flexural strengths with lower NMAS gradations and a direct correlation was evident as the increase in NMAS caused an increase in the strength and vice-versa.

Upon comparison of BG with ISG, it was revealed that BG mixes succeeded to demonstrate superior performance. From the material optimization, rheological and mechanical performance study, it is recommended that BG with NMAS 16 mm can be used for conventional SCC.

The purpose of this study is to determine the strategy adopted by small- and medium-scale enterprise (SME) owners in setting up internal control systems, examine the relationship between the numbers of employees’ fraud and strategy adopted in setting up internal control and evaluate the difference between proactive and reactive strategies in employee’s fraud prevention among SMEs.

A survey research approach was adopted to determine whether proactive or reactive strategies were adopted by the SME owners. Specifically, a survey questionnaire was used to gather primary data from selected respondents in Lagos and Oyo States. Descriptive statistics, Spearman correlation and the Mann–Whitney test were used to analyse the primary data.

The study found that most of the SME owners used reactive internal control strategies in setting up their internal control systems after they suffered financial losses occasioned by employees’ fraud. Also, the study found a positive relationship between the number of employees’ fraud and reactive strategy. Finally, the study found a significant difference in the number of employees’ fraud occurrences between proactive and reactive internal control strategies in SMEs.

The study provides further confirmation that where internal control is properly set up and strengthened, a lower number of employee frauds will occur. Thus, giving credence to the fraud theory. The study was, however, conducted in six selected local government areas in two states.

The study provides recommendations on the adoption of a proactive strategy for curbing employees’ fraud at the onset of business operations and not until devastating events of employees’ fraud become a reality.

The study is original, as it focuses on the strategy adopted by SME owners in setting up internal control systems, which is rare in fraud empirical studies, particularly for studies conducted in emerging markets like Nigeria. It provides the need for the sustainability of SMEs as engine of growth and employment through the adoption of appropriate strategies in setting up internal control systems.

This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the Malaysian government on risk management practices.

The sample of this study was based on 257 firm-year observations during the 2012–2017 period. This study employed panel-least square regressions with period fixed effects.

This study found a significant association between risk management activities in the disclosure and potential fraudulent financial reporting. Nevertheless, this study found there is insignificant effect of the risk-management committee in reducing potential of fraudulent financial reporting.

This study is a pioneer research that relates firms’ risk management practices with potential fraudulent financial reporting measured by F-score. Thus, this study provides an insight to regulators on the extent of risk-management practices in deterring potential fraudulent financial reporting which can be used as an input for greater enforcement of risk-management regulations.

This paper aims to investigate the impact of the implementation of the critical audit matters (CAMs) disclosure requirement and the subsequent relationship between CAM disclosures and audit report lag, as well as audit fees in the USA.

This study used difference-in-differences analyses to investigate the impact that the implementation of the requirement for auditors to report CAMs on their audit report has on the audit process. It also used levels regression models to examine the relationship that CAM disclosures have with audit report lag and audit fees.

This study found that the implementation of the CAM disclosure requirement in the USA reduced audit report lag while not significantly affecting audit fees. This suggests that the CAM disclosure requirement may increase the cooperation between auditors and managers and improve the efficiency of the audit process.

This study’s results are informative for assessing the economic impact of requiring CAM disclosures, which should be of importance to regulators, auditors and accounting researchers.

This study used different approaches to investigate two aspects of the CAM disclosure requirement – the effect of the implementation of the disclosure requirement and the subsequent effects related to CAM reporting outcomes. Unlike many previous studies investigating CAM disclosures, which relied on experiments and questionnaires, this study used actual CAM disclosure data in the USA to investigate the impact on audit report lag and audit fees.

Although publicly listed firms in Sri Lanka have been increasingly adapting sustainability reporting into their annual reporting practices, a limited number of firms prepare sustainability reports by integrating sustainable development goals (SDGs) into reporting mechanisms. This study attempts to develop an index to monitor firms' sustainability reporting practices based on Global Reporting Institute (GRI) guidelines integrating SDGs.

This paper develops a sustainability score index using the 17 SDGs utilising the results of content analysis of corporate annual reports of a selected sample of 100 firms listed on the Colombo Stock Exchange (CSE). Principal component analysis was employed to examine the reliability of data in the developed index.

Findings show that the developed scoring index is efficient for evaluating the contents of the sustainability reports of Sri Lankan firms. Sustainability reporting practises with regard to the SDGs were observed to have a turbulent period from 2015 to 2019 and the SDGs 12 and 15 were identified to be mostly reported in Sri Lankan corporate sustainability reports.

The results of the study add to knowledge on the monitoring of sustainability reporting practises with reference to SDGs. The study outcomes are useful for the investors, stakeholders, and statutory bodies to measure the sustainable performance of business firms and assess the firm’s commitment towards the global sustainability agenda.

To the best of our knowledge, this is the first study that constructs a sustainability reporting score index integrating SDGs.

Financial manipulation means the modification made knowingly and willfully by businesses in accounting records and transactions, in financial statements, through addition and subtraction, for the purpose of misleading financial information users. Financial manipulations are expected to have an effect on the decisions of financial information users. The present study was established on the basis of two main objectives. The first objective is to determine whether banks, which are Public Interest Entities (PIE), manipulate their financial statements. As for the second objective, it is to reveal whether the detected financial manipulations have an effect on investor decisions. The research conducted to achieve the first objective is based on the examination of independent audit reports for the periods between 2009 and 2017, pertaining to 45 banks registered to the Banks Association of Turkey, in terms of presented opinions. Data acquired from examined reports were subjected to content analysis via the Microsoft Excel program. In line with the second objective of the study, investor numbers for the periods between 2010 and 2017, of 13 banks, which are within the scope of BIST BANK, were included in the analysis, according to data acquired from the Central Registry Agency. Financial statements of banks, with audit reports in which a qualified opinion is expressed, were considered to have been manipulated. SPSS 22.0 statistics pack software was used to analyze whether investment demands toward these banks had an effect on decisions of domestic and foreign investors. In the analysis, frequency and One-Way ANOVA tests were used. In consequence of the analyses conducted, it was determined that, around one fifth of financial statements of PIE banks, pertaining to the periods between 2009 and 2017, were manipulated; it was mostly committed by private banks, and majority of the manipulations were committed due to free provisions made. It was also observed that manipulations did not have an effect on decisions of neither domestic nor foreign investors. The reason behind the latter is the fact that while the level of manipulations in financial statements is significant, it is not a widespread occurrence.

The purpose of this article is to identify problems and opportunities for improving the formation of financial statements (FS) in accordance with International Standards, which is the most important instrument for international economic integration.

In carrying out the research, we used the FS of the modern organizations, prepared in accordance with International Standards (IASs and IFRSs), posted on the official websites of these organizations. At the same time, we researched the FS of both Russian and foreign organizations in order to draw conclusions about the problems of preparing FS in accordance with International Standards, which are typical for most modern organizations in different countries. When conducting research, we used methods such as comparison, analysis and synthesis.

We identified the main problems that arise in practice when preparing FS in accordance with International Standards, which are typical for both Russian and foreign organizations. We also analysed the project of the IASB (the organization that develops these standards) to improve the requirements for the preparation of FS in accordance with International Standards. Based on the analysis carried out, we identified the main problems arising from the planned requirements of this project. As a result of the research carried out, we made proposals for solving the identified problems of the formation of FS in accordance with International Standards.

Our proposals can be used to improve the regulations of International Standards for the formation of FS, and can also be applied in the practical work of modern organizations.

The change of production methods, the industrial revolutions, technological developments, and digital transformation have affected almost all functions in the enterprises. Accounting and auditing areas are also quite affected by this transformation. Another important result of technology and digitalization is the rapid increase in errors, frauds, and irregularities. Enterprises are looking for new solutions and investigations against irregularities and frauds. Audits for errors, frauds, or irregularities are among the interests of forensic accounting. Many methods are used to identify errors and frauds in the forensic accounting. However, it is inevitable that digital technologies should be utilized in forensic accounting applications as a result of the rapid spread of automation and computer programs in enterprises within the framework of digitalized business activities. Hence, enterprises will be able to get more effective results through computer programs and artificial intelligence in terms of fraud audit in forensic accounting. Expert system applications use artificial intelligence to enable computer programs to behave just like people. One of the most widely used, most easily applicable, and most understandable types of expert system is rule-based expert system. The aim of this study is to determine the accounting fraud that may occur in enterprises within the framework of forensic accounting through rule-based expert systems. For this purpose, various applications have been implemented in a large-scale production enterprise through the use of rule-based expert systems for the determination of accounting fraud. Benford’s Law, risk levels, and various other criteria were used in the creation of expert systems. According to the results obtained from the study, it has been seen that by means of rule-based expert system applications, enterprises can better detect existing frauds and prevent further irregularities in the future. The study is important and it is expected that the study will contribute to the literature because it is shown in the study that the rule-based expert systems, applied in many fields under the title of social sciences, can also be applied in the field of forensic accounting and auditing.

We assess whether smaller investors are more likely to hold shares of closed-end funds that invest more heavily in illiquid securities. We also examine the relationship between the liquidity of the securities held in the portfolios of closed-end mutual funds (portfolio liquidity) and the liquidity of the closed-end funds’ shares (fund-share liquidity). Using a sample of 1,619 fund-years from 2010 to 2012, we find that smaller investors are more likely than institutional investors to own closed-end funds. We also find that the liquidity of closed-end funds’ portfolios is positively associated with the liquidity of the funds’ shares. Our findings are consistent with the “liquidity benefits” notion that closed-end funds are a means for smaller investors to invest in less liquid securities. In addition, our findings are consistent with the “valuation skepticism” notion which indicates that, due to the difficulty of objectively valuing illiquid securities, different perceptions of the value of illiquid securities held in funds’ portfolios may result in greater fund-share liquidity.