Credibility Of Statements Research Articles

Faktor-Faktor Yang Mempengaruhi Auditor Switching Pada Perusahaan Consumer Goods Industry Yang Terdaftar Di Bursa Efek Indonesia Periode 2018-2022

Companies use independent auditors to increase the credibility of financial statements in increasing public trust and reducing agency problems, so an auditor must maintain a professional attitude in auditing. The closer relationship between auditors and management can cause auditors to trust management clients more, which may manipulate financial statements or prioritise personal interests, in which case auditor switching is necessary. The purpose of this study is to determine the factors that influence auditor switching in consumer goods industry companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2022. The research method used is a quantitative approach with purposive sampling method and the analytical tool used in the research is logistic regression analysis. Data processing in this study using SPSS V.20 from secondary data. The population in this study were consumer goods industry companies listed on the IDX. This study used 44 samples of companies, during 5 years of observation 220 reports were analysed. The results of this study prove that simultaneously management change, institutional ownership, leverage, and Return of Assets (ROA) affect auditor switching. Partially, leverage affects auditor switching. Management turnover, institutional ownership, and ROA partially have no effect on auditor switching.

Accounting of inventories in service sphere enterprises based on modern technologies and its positive effects

In the dynamic landscape of service-sphere enterprises, accurate and transparent financial and management reporting plays a crucial role in assessing the company’s performance and making informed business decisions. One essential aspect of these reports is the reflection of accounting information related to reserves. Reserves act as a safety net, allowing businesses to mitigate risks, fulfill obligations, and invest in future growth. This article aims to explore the significance of improving the reflection of accounting information of reserves in financial and management reports in service-sphere enterprises and highlights strategies to achieve this objective effectively. Accurate and transparent financial and management reporting is essential for service-sphere enterprises to evaluate their performance, monitor costs, and make informed business decisions. Among the crucial elements of these reports is the reflection of accounting information related to inventory. Inventory represents a significant asset for service-based organizations, and effectively capturing its accounting information is crucial for assessing profitability, managing costs, and optimizing operations. Accurate reflection of inventory in financial reports is crucial for service-sphere enterprises as it provides valuable insights into the organization’s financial health and operational efficiency. By disclosing inventory-related information, such as valuation methods, carrying costs, and turnover ratios, financial reports facilitate decision-making for investors, creditors, and other stakeholders. Transparent reporting of inventory also enhances the credibility of financial statements, promoting trust and confidence in the organization’s financial position. Improving inventory accounting in service enterprises is crucial for maintaining efficient operations and maximizing profitability. In this article, we will talk about ways to further improve inventory accounting in service enterprises using modern methods and modern technologies.

A criteria-based classification model using augmentation and contrastive learning for analyzing imbalanced statement data

Criteria Based Content Analysis (CBCA) is a forensic tool that analyzes victim statements. It involves the categorization of victims' statements into 19 distinct criteria classifications, playing a crucial role in evaluating the authenticity of testimonies by discerning whether they are rooted in genuine experiences or fabricated accounts. The exclusion of subjective opinions becomes imperative to assess statements through this forensic tool objectively. This study proposes developing an objective classification model for CBCA-based statement analysis using natural language processing techniques. Nevertheless, achieving optimal classification performance proves challenging due to imbalances in data distribution among the various criterion classifications. To enhance the accuracy and reliability of the classification model, this research employs data augmentation techniques and dual contrastive learning methods for fine-tuning the RoBERTa language model. Furthermore, model-based optimization techniques are also applied to identify augmented hyper-parameters and maximize the model's classification performance. The study's findings, including an 8.5% improvement in macro F1 score compared to human classification results, a 24% improvement in macro F1 score, and a 13% improvement in accuracy compared to previous human classification results, suggest that the proposed model is highly effective in reducing the influence of human subjectivity in statement analysis. The proposed model has significant implications for legal proceedings and criminal investigations, as it can provide a more objective and reliable method for evaluating the credibility of victim statements. Reducing human subjectivity in the statement analysis process can increase the accuracy of verdicts and help ensure that justice is served.

The Impact of Creative Accounting Methods on the Credibility of Financial Statements

This research aims to know the extent of the impact of creative accounting methods on the validity and credibility of financial statements (financial position statement, income statement, cash flow statement), and this is from the point of view of both the preparers of the financial statements and the beneficiaries of their services. To answer the research problem, we have relied on the investigative aspect on a questionnaire. It was directed to two samples (preparers of financial statements and their beneficiaries). 60 searchable questionnaires were distributed and retrieved for each of the two samples. In analyzing the questionnaire and testing the research hypotheses, we relied on the nonparametric mean difference test for the two independent samples (Mann-Whitney) or (U). The study found that, to a large extent, there are no statistically significant differences regarding the effect of creative accounting methods and the validity and credibility of financial statements from the point of view of financial statement preparers and the entities that benefit from their services. They agree that creative accounting has a significant impact on the validity and credibility of financial statements.

Effects of Internal Control Systems on Credibility of Financial Statements in SACCOS. A Case of Kyamuhunga People’s Co-Operative Savings and Credit Society Limited Bushenyi, Uganda

The SACCO is faced with difficulties, according to KYAPS's 2021 audit report, including incredible financial reports resulting from material misstatements, material uncertainty from board members and management, loan applicants forging documents, receipts for nonexistent assets and transactions, dishonest details provided by borrowers, and a higher loan default rate. The present study aimed at establishing the relationship between monitoring and evaluation and credibility of financial statements, risk assessment on the credibility of financial statements, the relationship between Internal Audit and credibility of financial statements, a case of Kyamuhunga Peoples’ Cooperative Savings and Credit Society. Correlational research designs were used in this study. Self-administered organized survey questions and interview guides were used. 63 respondents from the KYAPS SACCO participated in this study. SPSS- version 26.0 was used for analysis to obtain descriptive statistics. Pearson linear correlation coefficient and regression analysis was used for analysis and thus there is a significant and positive relationship between monitoring and evaluation and credibility of financial statements as shown by correlation coefficient of 0.740 and P value .000<0.05., risk assessment and credibility of financial statements with 0.733 and p value .000<0.05., and internal audit and credibility of financial statements with correlation coefficient of 0.788 and p value .000<0.05. The findings of the study indicate that there is a significant positive relationship between monitoring and evaluation and credibility of financial statements in KYAPS suggesting that an improvement in monitoring and evaluation leads to improved credibility of financial statements as indicated by the findings, effective implementation of risk assessment results into Credible Financial Statements and that an improvement in Internal audit leads to attainment of credible financial statements. SACCO managers should strengthen the monitoring and evaluation to ensure improved accountability and hence credible financial statements, Risk assessment is emphasized by management to carry out business in an orderly and efficient manner and management should always keep them informed of any new internal controls introduced so as to ensure their effective implementation since they are the very people to implement the policies. Keywords: Internal Control Systems, Credibility of Financial Statements, Monitoring and Evaluation, Risk Assessment, Internal Audit

Integrity of Financial Statements: An Empirical Study in Indonesia

The integrity of financial reporting depends on the accuracy and objectivity of the data given. Another technique to assess a company's reliability in providing financial data is by looking at their reporting integrity. The purpose of this study is to investigate the relationship between intellectual capital, leverage, and the credibility of financial statements from an institutional ownership perspective. The following transportation and logistics businesses were chosen using a purposive sample technique: all companies listed on the Indonesia Stock Exchange from 2018 to 2022. The research methodology for this study is panel data regression, and Eviews 10 will be used for data analysis. The study's findings indicate that all three independent factors have an impact on financial report integrity concurrently; institutional ownership has no effect, leverage has a negative impact, and intellectual capital has a partial positive impact.

Disclosure of Origin in European Biotechnology Patent Law: A Social Network Analysis Perspective

Abstract Recital 27 of the European Union Directive 98/44/EC on the Legal Protection of Biotechnological Innovations mandates the disclosure of the geographical origin of biological material when the invention is based on or incorporates such material. This requirement seeks to monitor the origin of biological materials, often linked to indigenous and local communities, to ensure prior informed consent and equitable benefit-sharing with resource providers. Several European countries, such as Switzerland and Norway, legally require this disclosure, and the Draft International Instrument of the World Intellectual Property Organization is poised to expand the list of nations with such requirements. However, the definition of ‘origin’ presents challenges for patent applicants, as it may refer to the primary source (e.g. indigenous and local communities, the country of origin) or secondary sources (e.g. ex situ plant collections or commercial suppliers). Moreover, defining the information to be disclosed as the origin is crucial for the credibility of disclosure statements. To address this issue, this article pioneers a social network analysis approach to the issue of biopiracy and disclosure of origin. It introduces the network-centric narratives of 30 prominent cases of biopiracy from South and Southeast Asia, Latin America, and Africa, and unveils the average distance between the nodes previously accused of biopiracy and the nodes that correspond to the origin of the biological material in question. By highlighting the role of intermediaries in distorting information within material distribution networks, the findings contest the feasibility of requiring patent applicants to provide information on both primary and secondary sources.

Police perceptions of alibi accounts: the role of intergroup bias

Research has revealed that ethnicity has a significant influence on police officers, potentially leading to discriminatory practices against suspects from different ethnic backgrounds. This study aimed to investigate the inclination to favor members of one’s own social group, as proposed by social identity theory, when evaluating the credibility of alibi statements by Israeli police officers. The research involved 205 police officers who evaluated the credibility of alibi statements provided by suspects belonging to either the Israeli-Jewish or Israeli-Arab ethnic groups. The findings indicate that police officers were more inclined to believe the alibi when it was presented by a suspect from their own social group, thus supporting the presence of intergroup bias in assessments of alibi credibility. The implications of these findings, both practical and theoretical, are discussed.

Proposing immersive virtual reality scenarios for validating verbal content analysis methods in adult samples.

Verbal content analyses to differentiate truthful and fabricated statements, such as the Criteria-Based Content Analysis (CBCA), are used in lie detection research as well as in practice to assess the credibility of statements in criminal court proceedings. Meta-analyses demonstrate validity of verbal content analyses above chance, but the traditional research paradigms usually lack either ecological or internal validity. The authors discuss the usage of immersive virtual reality scenarios to solve this dilemma, as both types of validity can be increased by this approach. In this integrative review of existing literature on the current use of virtual scenarios in forensic and victimology research, the authors extract strengths and limitations for possible VR studies in the context of verbal content analysis. Furthermore, novel ethical challenges involved are summarized and implications for future studies proposed. Overall, we argue in favor of using virtual reality scenarios to validate methods for verbal content analysis, but also urge to consider ethical limitations regarding unwanted short- and long-term aftereffects.

Investigating the effect of nativeness and speaker age on the credibility of spoken sentences

Previous studies found mixed results regarding a bias in credibility ratings for trivia statements made by L2 speakers in comparison to L1 speakers. Perceptual fluency, social attitudes, and pragmatic lenience have been proposed as underlying causes for the bias. The present study examined credibility ratings for L2 speakers and extended the scope of the investigation by adding the factor age of the speaker. In the present study, German native adult listeners were asked to judge the credibility of trivia statements recorded by L2 adults and L1 children in Experiment 1 and statements by L1 adults and L1 children in Experiment 2. In Experiment 1, the ratings showed no difference in credibility between the L2 adult statements and the L1 child statements. In Experiment 2, listeners rated statements from L1 child speakers as more credible than statements from L1 adult speakers, suggesting a positive bias for the credibility of children. The results are discussed in terms of their relevance for previously suggested causes contributing to a credibility bias.

Property, Plant and Equipment Measurement and Financial Reporting Quality of Manufacturing Firms in Nigeria

The quality of financial information in Nigeria regarding property, plant and equipment, particularly in the manufacturing sector, remains a significant concern. In view of this, this present study examined the relationship between property, plant and equipment measurement and financial reporting quality of manufacturing firms in Nigeria. The specific objectives were to ascertain the effect of PPE measurement using cost model on faithful representation of financial information of manufacturing firms in Nigeria and to assess the effect of PPE measurement using revaluation model on faithful representation of financial information of manufacturing firms in Nigeria. This study adopted a survey research design with data collected through the administration of a five-point Likert Scale questionnaire to a sample of 360accounting staff across selected manufacturing firms in Nigeria. The data collected were analyzed using descriptive statistics tools and Pearson product moment correlation analysis via SPSS 25.0 statistical package. The study findings revealed that PPE measurement using cost model has an insignificant positive relationship (r= 0.039{p=0.468>0.05}) with faithful representation of financial information of manufacturing firms in Nigeria while PPE measurement using revaluation model has a significant positive relationship (r= 0.733{p=0.000<0.05}) with faithful representation of financial information of manufacturing firms in Nigeria. It was thus concluded that the use of the revaluation model for PPE measurement leads to more accurate and reliable financial information, which enhances the credibility of financial statements and increase stakeholder trust. The study recommended, amongst others, that regulatory bodies in Nigeria should consider mandating the use of the revaluation model for PPE measurement in financial reporting to enhance the credibility of financial information at all times.

Forensic Accounting, a Veritable Financial Tool for Qualitative Financial Reporting Systems in the 21st Century

Purpose: The aim of this study was to examine the implications and effects of forensic accounting as a veritable financial tool for qualitative financial reporting in the 21st century. In this period, forensic accounting is playing a significant role in the trajectory efforts in building enduring confidence in the credibility of financial reporting systems. Theoretical Framework: The quality of financial reporting is under critical threat as a result of reported financial scandals and the professional recklessness of a few unscrupulous individuals in the accounting profession. The objective of the financial reporting system is to galvanize the reporting procedures and true application of accounting standards to improve the general acceptance of accounting information. Forensic accounting bridges the gap as a veritable financial tool to enhance the quality of financial reporting. Design/Methodology/Approach: The study employed used a survey research method, using a structured questionnaire administered through an online platform targeting a selection of forensic accounting investigators and forensic accountants. A total of 443 questionnaires were validated and used for the analyses. The reliability and validity of the instrument were confirmed with the use of Cronbach Alpha and descriptive statistics and inferential analysis were used for the study analyses of the data. Findings: The result demonstrated that forensic accounting exerted significant effects on each of the qualitative characteristics and enhanced characteristics of financial reporting systems in the study. The study concluded that forensic accounting as a veritable financial tool significantly affected the quality of financial reporting systems in this 21st century. Research Practical & Social Implication: The study with the possibility of application of forensic accounting during this contemporary period, the quality of financial reporting is enhanced. The implication of forensic accounting in safeguarding corporate financial risks should not be ignored, in providing novelty and oversight functions building quality and trust in reliance on the quality of financial reporting. Implication/Originality/Value: The value of this study is assuring quality financial reporting in providing strong confidence and trust in the reliability and credibility of financial statements in making useful decisions capable of adding economic value to the stakeholders.

Examining Factors that affect the Quality of Government Financial Statements

The purpose of this study is to evaluate the impact of various factors on the credibility of government financial statements. These factors include: apparatus competence, use of financial information systems, auditor quality, and auditor opinion. The participants in this study consisted of members of the Financial Report Compilation Team and external auditors of the Supreme Audit Agency (BPK) who examined local government financial reports. A total of 60 respondents were sampled, which were determined using the Purposive Sampling method. This research is a quantitative exploration of primary data. Questionnaires were used to obtain information. Descriptive statistics, normality, multicollinearity and heteroscedasticity tests, multiple regression tests, R-squared and t-test, and F-test were used to test the hypotheses. The results of this study show a positive and significant relationship between the quality of financial statements produced by the Jayapura Regional Government and the factors of Apparatus Competence, Use of Financial Information Systems, Auditor Quality, and Auditor Opinion.

Konvergensi IFRS terhadap Manajemen Laba (Studi Konseptual)

Accounting standards are guidelines used in accounting practice. The existence of profit management cases carried out by several large companies in the United States such as Enron, WorldCom, and so on triggered the creation of a new accounting standard that is applied globally, namely IFRS. IFRS was developed by the IASB with the aim that this international standard can minimize profit management practices in addition to improving the quality of financial statements. Profit management practices are one of the topics that are often debated because this practice can reduce the credibility of financial statements and can add bias in financial statements. However, when viewed from the point of view of management who wants to display the company's performance and condition remains good, it is also not a wrong thing. This profit management practice will actually not be negative if in managing the profits of a company using accounting methods that are allowed by generally accepted Financial Accounting Standards. This article is designed to describe the convergence of IFRS in Indonesia and its impact on profit management.

Is the COVID-19 Fake News game good news? Testing whether creating and disseminating fake news about vaccines in a computer game reduces people's belief in anti-vaccine arguments

Improving vaccination eagerness is crucial, especially during the ongoing COVID-19 pandemic and establishing new procedures to achieve that goal is highly important. Previous research (Roozenbeek & van der Linden, 2019a, 2019b) has indicated that playing the “Bad News” game, in which a player spreads fake news to gain followers, reduces people's belief in fake news. The goal of the present paper was to test an analogous new game called “COVID-19 Fake News (CFN)” to improve one's eagerness to vaccinate against coronavirus. CBN was constructed to examine whether creating and disseminating fake news focused on vaccinations and the COVID-19 pandemic has a similar effect and improves people's attitudes toward vaccination. Two experiments were conducted where participants played CBN or Tetris and afterwards evaluated the credibility of statements about vaccines against COVID-19 and finally filled out a questionnaire concerning their attitudes toward vaccination. The results show that playing CBN does not reduce evaluations of the credibility of all statements that are unfavorable to vaccines (false as well as true). Additionally, it does not enhance readiness to vaccinate. Future research and limitations are discussed.

Reduced statement credibility in interpreter-mediated interviews

In this article, we examine whether the participation of an interpreter in police–suspect investigative interviews affects the perception of statement credibility based on the written record of the interview and, whether this relationship is influenced by the interaction style as depicted in the written record. This study thus addresses the question of whether the credibility problems observed in interpreter-mediated investigative interviews are carried forward to the case file and is based on the content analysis of 102 actual written records of police–suspect interviews conducted in Switzerland. Our results show, first, that written suspect statements are indeed considered to be less credible when an interpreter participates in the interview. Second, this effect is mediated by the questioning style and the fragmentation of discourse. According to the written records of interpreter-mediated interviews, interviewers use a more controlling questioning style and suspects provide shorter answers, which in turn results in reduced statement credibility.

AUDIT FEES AND COMPANIES’ ACCESS TO FINANCE

This paper aims to study the impact of audit fees on companies' ability to access finance by reducing their capital constraints. This study employs a dataset of listed non-financial Indonesian companies from 2016 to 2020. Unlike previous studies, which mostly examined this phenomenon in developed economies, this paper focuses on a country with a two-tier corporate governance model where the capital market is not a major source of financing and the disclosure of audit fees is still voluntary. In such a setting, the decision to disclose audit fees is in the hand of the companies' management, and various motivations behind the decision will differently impact different users of financial information. This paper focuses on whether the information related to audit fees is a good signal for capital providers. Following the limited attention theory, this study argues that capital providers will consider the information about audit fees as a more reliable proxy for audit efforts that subsequently affect their investment decision. The hypothesis is that audit fees are negatively associated with companies' financial constraints. The findings indicate that capital providers see higher audit fees as signals of high-quality audits that enhance the credibility of financial statements and positively impact companies' access to finance. 
 
 Key Words: Audit Fees, Capital Constraint, Access to Finance, Audit Quality, Limited Attention Theory

The Impact of Auditor Integrity to Audit Quality: an Exploratory Studies from the Middle East


 
 
 
 Background: The increasing pressure from external parties to improve audit quality and enhance the credibility of financial statements. As corporate financial scandals widely occurred, there are requests for the profession to enhance their quality in the audit. The public continuously talks about the auditor's integrity in performing their tasks, which undisputedly plays a significant role in determining the audit quality.
 
 Purpose: This study aims to re-explore the concept of auditor integrity and understand its impact on audit quality.
 
 Methodology: Qualitative study approach intended to redescribe auditor integrity from auditors' perspective in the Middle East, particularly in the Sultanate of Oman, using the Focus Group Discussion (FGD). This study chooses six auditors with vast experience and who hold a significant position in the audit firms.
 
 Findings: The study revealed that integrity is the critical determinant of audit quality and relates very much to reputation. In this profession, reputation is crucial, and integrity is the best way to uphold a reputation.
 
 Social and Practical Implications: Reputation is the most valuable asset, and its loss may affect the profession's viability. From the FGD, the auditors are fully aware of the importance of integrity to uphold the profession's reputation and ease transactions with clients and the public.
 
 
 

Influence of e-auditing on credibility and reliability of financial information within public shareholding companies

The current study aimed to find out the role of electronic auditing (e-auditing) in the positive impact on the reliability and credibility of financial information by adopting the dimensions and specifications of e-auditing (relevance, competence, sufficiency, and timeliness) and demonstrating the ability of these specifications to impart reliability and credibility to the financial information. The quantitative approach was adopted for this purpose and a questionnaire was distributed to a sample of 117 financial managers in public shareholding organizations in various sectors in Jordan. Relying on Statistical Package for the Social Sciences (SPSS), the study concluded that all e-audit variables have a positive impact on increasing the reliability and credibility of financial statements, and the most influential was timeliness with a value of R = 0.851. The study recommended intensifying the possibility of using external expertise with better knowledge in the field of software and technology, if there is a need to do so, and focused on the need for a periodic and permanent update of the accounting audit systems. Further recommendations were presented in the study.

성폭력 범죄의 신빙성 판단기준인 성인지 감수성에 대한 고찰

When sexual violence crimes are committed in a private space, there is little physical evidence, and it is not easy to prove the perpetrator's crime as the victim is the only witness. If the arguments of the two parties are different, there is no choice but to worry about whose statement to give faith. In sexual violence crimes, gender sensitivity appears as a criterion for judging the credibility of victim statements.
 Gender sensitivity is a broad ability to recognize gender discrimination and gender inequality, a concept that has recently emerged to improve gender-related perceptions such as gender equality and gender awareness. Originally, gender sensitivity was a cognitive concept that was not related to the legal application of criminal cases and should be applied to policies or systems. In 2018, the Supreme Court applied for the first time in sexual harassment cases. As the Supreme Court cites this in criminal proceedings, it appears to be important in its meaning under criminal law.
 However, gender sensitivity is a concept that requires judgment from the perspective of an average victim, and what it means is ambiguous. In addition, there is a concern that objective and detailed arguments may be omitted during the trial process by hastily generalizing the victim's statements. It is also very dangerous because it seems to be implicitly understood to put more credibility on the victim's statement. In addition, it may be quite unreasonable to judge guilt or innocence based on the victim's statement. This is no different from estimating facts based on the victim's statement, so there is also a risk of a public opinion trial.
 Gender sensitivity should be satisfied that the victim cannot be said to be not a victim just because he/she acted uncharacteristically. In other words, gender sensitivity cannot be the only criterion for solving sexual violence crimes. This is the same as victimhood in a narrow sense. In other words, gender sensitivity and victimhood should act as passive elements that cannot be said to be victims just because they do or do not do such actions. Therefore, gender sensitivity or victimhood cannot be the only criterion for judging the credibility of victim statements. If only statements exist and there is no physical evidence, there is only an effort to reveal the truth, but the perfect substantive truth cannot be revealed. Therefore, the contents of the statement should be comprehensively evaluated and the principle of presumption of innocence should be followed. In addition, it can be said that a case without reasonable doubt in conviction requires a high degree of certainty compared to a case with physical evidence.