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Introduction: In the context of globalisation processes, the necessity to create appropriate information support for management decisions at various levels becomes increasingly important: at the international, national and enterprise levels. The source of such data is financial reporting. The last leads to increase attention from key users (investors, lenders, other users) to the reliability and quality of financial reporting data. The study of scientific literature and best foreign practices made it possible to identify problems of the theoretical, organisational and methodological background of preparing high-quality financial statements and their assessment, particularly the lack of a unified interpretation of the financial reporting quality concept. The necessity to identify a theoretical basis for assessing financial reporting quality has led to the relevance of this study.

Aim: Scientific substantiation and improvement of theoretical provisions of methodology development for financial reporting quality assessment.

Methods used within the study are the following: Analysis, synthesis, operational approach, bibliographic analysis, generalisation.

Findings: The application of an operational approach to the formulation of the definition of financial reporting quality has made it possible to create the basis for its assessment. This approach involves descriptions of the principles of clarity and uniformity. The authors define the concept of ‘financial reporting quality’, formulating the theoretical principles for financial reporting assessment as the process of establishing compliance of financial statements with a specific list of qualitative characteristics.

The purpose of this paper is to teach students the fundamental and most critical aspects of performing a financial statement risk assessment, a skill vital to help ensure both auditor and public‐company compliance with guidance found in the Sarbanes‐Oxley Act of 2002 (SOX), the SEC's Interpretative Guidance regarding Management's Report on Internal Control over Financial Reporting, the control deficiency evaluation framework found in Auditing Standard No. 5 (AS5) of the Public Company Accounting Oversight Board (PCAOB), and the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

This instructional case study helps students assess the impact of a set of hypothetical internal control deficiency risks in various industries, including inherent and residual financial statement risk assessment, and concludes with determining which identified internal control weaknesses are significant deficiencies and material weaknesses in internal control. Included in the financial statement residual risk assessment process are example entity‐level and process‐level controls described in COSO. Learning objectives, implementation guidance, and the efficacy of using the case study in the undergraduate or graduate auditing or accounting information systems courses are also provided.

The results of classroom testing of the case study at two universities provides evidence the case study increases student understanding of the implications of internal controls and their impact on the reliability of the financial statements significantly. Students also found the case to be challenging, interesting, relevant, clear, understandable, and a realistic approximation of what they might expect to encounter in the real‐world when performing a financial statement risk assessment.

The case study includes the development of skills important to students in performing financial statement risk assessments, either as an auditor or when working in a private industry environment, including making professional judgments related to risk assessment.

The global financial crisis has magnified the role of Financial Sector Surveillance (FSS) in the International Monetary Fund's activities. This chapter surveys the various steps and initiatives through which the Fund has increasingly deepened its involvement in FSS. Overall, this process can be characterised by a preliminary stage and two main phases. The preliminary stage dates back to the 1980s and early 1990s, and was mainly related to the Fund's research and technical assistance activities within the process of monetary and financial deregulation embraced by several member countries. The first ‘official’ phase of the Fund's involvement in FSS started in the aftermath of the Mexican crisis, and relates to the international call to include financial sector issues among the core areas of Fund surveillance. The second phase focuses on the objectives of bringing the coverage of financial sector issues ‘up-to-par’ with the coverage of other traditional core areas of surveillance, and of integrating financial analysis into the Fund's analytical macroeconomic framework. By urging the Fund to give greater attention to its member countries' financial systems, the international community's response to the global crisis may mark the beginning of a new phase of FSS. The Fund's financial sector surveillance, particularly on advanced economies, is of paramount importance for emerging market and developing countries, as they are vulnerable to spillover effects from crises originated in advanced economies. Emerging market and developing economies, which constitute the majority of the Fund's 187 members, are currently the recipients of over 50 programmes of financial support from the Fund (including those of a precautionary nature), totalling over $250 billion.

This research study aims to examine how differences in opinions on the material weaknesses identified in the auditor's assessment of the financial statements, and the auditor's assessment of internal control affect investment analysts' assessment of the financial strength of the company and willingness to recommend the stock for purchase to clients. It also aims to examine how the auditor's opinion on management's assessment of internal control affects investment analysts' assessment, providing additional evidence of the appropriateness of the elimination of this requirement under Auditing Standard No. 5.

The paper examines these research questions using data from a laboratory experiment with investment analysts as participants in the study.

The findings indicate that adverse audit opinions on the effectiveness of internal control result in investment analysts making a higher assessment of company risk, a lower assessment of the strength of internal control over financial reporting, and a marginally significant difference in the likelihood of recommending stock to their client.

These findings provide evidence that auditors' assessment of internal control risk provides information to investment analysts.

This study contributes to the literature by examining the implications of Section 404 of the Sarbanes‐Oxley Act on the judgment of users of financial statements.

This study examines the association between financial literacy confidence and financial satisfaction. The authors posit that overconfident poor performers will experience greater levels of financial satisfaction and underconfident high performers will experience lower levels of financial satisfaction.

Based on the results of an objective financial literacy assessment and a subjective financial literacy assessment, variables measuring study participants' financial literacy overconfidence and financial literacy underconfidence are constructed. The variables are analyzed for their associations with financial satisfaction.

The results from the multivariate analysis suggest that financial literacy overconfidence (underconfidence) is associated positively (negatively) with higher levels of financial satisfaction and is associated negatively (positively) with lower levels of financial satisfaction.

The discussion first highlights that to increase objective financial literacy, the disconnect between subjective financial literacy assessment and objective financial literacy must be recognized. Secondly, the discussion encourages financial literacy and education programs to incorporate behavioral education, which can provide learners with an awareness of the role of financial literacy confidence when making financial decisions.

Financial literacy overconfidence can result in an inability to recognize the realities of one's financial situation. Individuals who are overconfident in their level of financial literacy preformed lower on an objective assessment of their financial literacy, yet also tended to have a greater sense of financial satisfaction. This finding not only suggests that financial literacy overconfidence results in financial ineptitude, but also suggest that financial literacy overconfidence can result in specious conclusions regarding one's financial situation. The financial literacy underconfidence finding suggests that those who are financial literate, and who are also underconfident in their financial literacy, are less likely to have high financial satisfaction.

In order to secure a proper execution of sporting competitions, national governing bodies of professional football leagues apply specific regulatory procedures. In this context, special focus is placed on requirements that are supposed to ensure financial stability of clubs. They, in turn, help avoid negative economic externalities, i.e. the problem that financial difficulties from one club can affect other clubs and stakeholders due to the interdependent relationships of the competition. These regulations on a national level in European professional football leagues show several significant differences. Therefore, the purpose of this paper is to comprehensively analyze financial regulatory procedures of professional football leagues to generate possible improvements of the regulations in detail.

Using a document analysis of the regulation books of the English Premier League and German Bundesliga (BL), this study compares the regulatory procedures of those important European professional football leagues. Further evaluation was performed through a qualitative content analysis to develop a category system including six categories with 72 criteria from deductive and inductive procedures. For more advanced coding, an assessment scale was integrated.

Compared to the Premier League, the regulation of the BL points to a more intensive regulation in all categories and across all analyzed indices. The results of both leagues partially reveal that assessment and monitoring requirements tend to be ineffective, which can substantially endanger the achievement of the whole monitoring process’ aims. The intention to ensure the financial stability for securing the league competition can be missed in such a situation and negative economic externalities cannot be prevented effectively.

For the first time, this study includes all relevant requirements of financial club assessment and monitoring. Thereby, an abstract comprehensive and systematic structure for professional team sports leagues is described and allows for a concrete international comparison of two European professional football leagues. At the end, several approaches to improve the regulatory framework are provided.

The purpose of this paper is to extend and improve prior readability and obfuscation research by investigating the effect of connotation on readability and obfuscation. Furthermore, the paper aims to develop and apply a novel connotation‐based obfuscation assessment approach.

In total, 87 chairman reports of firms included in the Standard & Poor's ASX200 index were analyzed. The readability of sections and connotation‐based groups of sentences within these narratives were assessed using the Flesch readability formula. The presence or absence of obfuscation within the analyzed chairman addresses was determined using a novel connotation‐based obfuscation assessment approach.

The study demonstrates that the mid section within the analyzed chairman addresses was significantly more difficult to read than the first and last sections. However, the notion that these reading difficulty differences were due to the prevalence of positive and negative news within these sections could not be supported. A subsequent analysis of the reading difficulty differences between connotation‐based groups of sentences identified the largely positive group of sentences as an important source of reading difficulty. Finally, the advantages resulting from an application of the connotation‐based obfuscation assessment developed in this paper over the traditional obfuscation assessment techniques used in prior literature are demonstrated.

This paper provides a substantial contribution to the literature by establishing a direct link between the connotation of information provided in financial reporting narratives and the readability and obfuscation exhibited by these narratives. The novel assessment approach developed in this paper can be used to benefit preparers and users of financial reporting information by identifying types of sentences whose preparation and/or analysis should be approached cautiously.

The purpose of the research is to identify the degree of intensity of barriers to the activities of social enterprises (SEs) and to examine the significance of such barriers regarding the financial situation of SE’s in emerging economies.

The data relates to 200 SEs selected from a national survey of 1,300 Polish non-governmental organizations (NGOs). An analysis of barriers to SEs according to the frequency of their occurrence was conducted. An indicator of the intensity of barriers to the activities of social enterprises and an indicator on these enterprises’ overall financial condition were determined. Spearman rank correlation analysis was used to assess the relationship between the indices.

The results of the study indicate that in addition to excessive bureaucracy in public administration and the complex formalities related to the use of private and public funds, SEs have difficulties in maintaining good staff and volunteers, whereas people in key positions reference burnout, not only among their own employees but also in themselves. These have a significant impact on the financial situation of SEs.

This study contributes to the field of social entrepreneurship in two ways. One is at the macro level in that it provides suggestions for public authorities in emerging economies interested in maintaining SEs in good financial condition so that they can effectively fulfil their social functions. The second contribution – the micro approach – is recognizing the extent of the impact of barriers on the financial condition of SEs and also determining the intensity of such barriers with regard to the mobilization of resources by managers, especially in the field of human resources.