FINANCIAL STATEMENTS MANIPULATION TECHNIQUES

Petra Jakaša

Abstract


Financial statements are basic source of accounting information used for decision making. All users presume that financial statements are reliable and offer realistic picture of the company’s financial position. If some part or entire financial statement is manipulated decision making process of users is corrupted. The history shows that some large financial statements manipulations or frauds were eventually exposed and this diminish reliability of financial statements in general. This paper aims to give an overview of most common manipulation techniques. The purpose of this paper is to help users of financial statements understand manipulation techniques in order to improve their decision making process.

Keywords


manipulation, financial statements, manipulation techniques

Full Text:

PDF

References


Aljinović Barać Ž., Klepo, T. (2006), Features of accounts manipulations in Croatia, Zbornik radova Ekonomskog fakulteta u Rijeci, vol. 24 no 2, 273-290

Accounting act, Official gazette No. 78/15, 134/15, 120/16

Balaciu, D. , Pop Cosmina, M., (accessed on December 13th , 2017) http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.599.422&rep=rep1&type=pdf

Butala, A. and Khan, Z.U. (2008), Accounting Fraud at Xerox Corporation, http://dx.doi.org/10.2139/ssrn.1152770

Croatian standards of financial reporting, Official gazette No. 86/15

Dimitrijević, D. (2015), Economic Horizon, Vol.17 No.2, 135-150

Grazioli, S., Johnson, P.E. and Jamal, K. (2006), A Cognitive Approach to Fraud Detection, Jornal of forensic accounting, 1-24

International standards of financial reporting, www.ifrs.org (accessed on December 10th, 2017)

Mulford, C.W., Comiskey, E.E. (2002), The financial numbers game-detecting creative accounting practices, New York, John Wiley & Sons, Inc.

Mulford, C.W., Comiskey, E.E. (2005), Creative cash flow reporting: uncovering sustainable financial performance, New York, John Wiley & Sons, Inc.

Schilit, H. (2002), Financial shenanigans-how to detect accounting gimmicks & fraud in financial reports, 2nd edition, McGraw-Hill, a division of The McGraw-Hill Companies

Skousen, C. J., Smith, K.R., Wright, C.J. (2008), Detecting and Predicting Financial Statement Fraud: The Effectiveness of the Fraud Triangle and SAS No. 99.


Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2017 INTERNATIONAL EDUCATION AND RESEARCH JOURNAL