Reliability Of Financial Reports Research Articles

THE INFLUENCE OF COMPANY SIZE ON AUDIT REPORT LAG IN COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

A financial report audit has the aim of providing an opinion regarding the fairness and conformity of financial reports with applicable principles. Financial report audits are carried out to provide assurance of the reliability of financial reports. Financial reports are a means of communication and accountability for internal company parties to external parties, especially for companies that go public. Company financial reports contain information that is a tool for stakeholders and users of financial reports in making decisions. To ensure that financial reports are useful in decision making, reliability and timeliness (relevance) are very important. If there is a delay in reporting financial reports, this can affect users of financial reports in making decisions and predictions.

Automating financial reporting with natural language processing: A review and case analysis

In the evolving landscape of financial reporting, the integration of Natural Language Processing (NLP) emerges as a beacon of innovation, promising to redefine the paradigms of accuracy, efficiency, and compliance. This paper embarks on a scholarly expedition to explore the transformative potential of NLP within the realm of financial disclosures, navigating through the intricate interplay of technological advancements and regulatory frameworks. The study meticulously analyzes the application of NLP techniques in automating financial reporting, unraveling the complexities of implementation and the multifaceted challenges therein through a qualitative research design. Through a comprehensive review of the literature and empirical data, the paper illuminates the efficacy of NLP in enhancing the precision and reliability of financial reports while also delving into stakeholders' perceptions regarding its adoption. The findings reveal a significant improvement in reporting efficiency and accuracy, underscored by the strategic importance of addressing implementation hurdles and regulatory considerations. The study culminates in a set of cogent recommendations, advocating for the development of a robust framework for NLP applications in financial reporting, alongside a clarion call for ongoing research into sophisticated NLP models and scalable solutions. In essence, this paper not only charts a course for the future integration of NLP in financial reporting but also stands as a testament to the indelible impact of technological innovation on the financial industry. It beckons the academic and professional communities to forge a collaborative path towards realizing the full potential of NLP, thereby ushering in a new era of transparency and insight in financial disclosures.

Analysis Of Good Corporate Governance, Liquidity, And Company Size On The Quality Of Financial Reports

This study intends to examine how firm sizes, liquidity, and effective corporate governance affect financial statements. In this study, agency theory is employed. The study's independent variables include the size of the organization, liquidity, and excellent corporate governance. The quality of the financial reports is one of the research's dependent variables. Consumer products firms that floated on the Indonesia Stock Exchange between 2019 and 2021 make up the sample for this study. SPSS is employed in the quantitative research methodology. The linear regression analysis method is used in this study. This study will demonstrate effective corporate governance and the effects of firm size on the reliability of financial reports. In the meanwhile, the quality of financial reports is unaffected by liquidity.

The Effect of Institutional Ownership, Independent Commissioners and Debt Policy on Financial Statement Integrity

There are still many reporting incidents carried out by many parties, making it difficult for investors to make decisions because the integrity of financial reports cannot be trusted. The purpose of this study is to disentangle the partially and simultaneously impacts of institutional ownership, independent commissioners, and debt policy on the reliability of financial statements. This article's secondary data came from the Indonesia Stock Exchange. The population in the study for the years 2017-2021, the sample comprises of 20 coal-focused mining companies trading on the Indonesia Stock Exchange. The study sample was selected by a process of purposive sampling. In this study, the data was analyzed using panel data regression analysis in Eviews 12. The results suggest that independent commissioners, institutional ownership, and debt policy all play significant roles in determining the reliability of financial reporting. Institutional Ownership and Debt Policy partially have a significant effect on the Integrity of the Financial Statements, while the Independent Commissioner does not affect the Integrit y of the Financial Statements. Considering that the adjusted R square rate value is only 0.65 percent and the rest is caused by other variables that may have a greater influence on the application of accounting conservatism, researchers are advised to test other variables that have a greater influence on accounting conservatism, either directly or through use of different proxies such as caution. Management should re-evaluate the role of independent commissioners in managing corporate governance if they want to increase the reliability of financial reports.

Analisis Bisnis Proses Keberatan Dan Pengurangan PBB di BAPENDA Kota Palembang

The Internal Control System (ICC) is a crucial workflow in actions and activities that are continuously carried out by superiors and all employees to ensure the achievement of organizational targets through efficient and effective measures, reliability of financial reports, protection of state assets, and compliance with applicable laws and regulations. In the business process of objection and reduction of PBB at the Regional Revenue Agency (BAPENDA) of Palembang City shows that the previous business process has several existing obstacles, such as from existing staff, process time, and in terms of tasks in the business process. Therefore, it is necessary to analyze the business process of objection and reduction of PBB at the Regional Revenue Agency (BAPENDA) of Palembang City. So that the research aims to analyze the suitability of this procedure with SPIP and other inhibiting factors. The method used in this research is the Business Proceses Improvement (BPI) method, which is a method used to analyze the business process of tax objections and UN reductions, and uses the Bizagi Modeler application as a simulation of business process analysis, and uses Streamlining Tools in making improvements to the old business so that it becomes a more effective and efficient business process. Based on the results obtained, it shows that the original business process takes a long time so that new business process recommendations are made. This is intended to make the time required shorter than the old one.

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

The objective of this study is to investigate the impact of school ties between top management executives, such as the Chief Executive Officer and Chief Financial Officer, and external parties, including auditors, on a company’s earnings management practices. This study uses fixed effect regression method to test the hypotheses, whether school ties between top management executives and audit partner will affect on the practical earnings management. The authors obtained sample from Indonesia Stock Exchange Commission during 2010 to 2022 and includes several causality tests to robust the empirical result from current study. Our findings suggest a noteworthy positive association between school-ties linking the Chief Executive Officer (CEO) and the Auditor with Earnings Management. However, our analysis reveals that other combinations of school ties exhibit an opposite effect. The findings of this study suggest that ties between internal and external parties within a company may be a factor that investors should carefully consider when evaluating the accuracy and reliability of financial reports. As such, it may be prudent to avoid investing in such companies. Despite prior research extensively examining the measurement of accrual-based earnings management, the literature lacks discussion regarding its association with the potential influence of ties. Thus, this study aims to fill this gap by investigating the relationship between top management school ties and earnings management.

Evaluasi Pengendalian Internal atas Aset Tetap pada PT WAN

This research aims to evaluate the implementation of the concept of internal control within the COSO framework for the procurement and management of fixed assets in an effort to increase the reliability of financial reports. PT WAN is a logistics service provider company by providing land transportation services. Dump trucks and heavy equipment are important components in business activities. Several incidents of errors in fixed assets such as discrepancies in recording and asset ownership status, also inadequate documentation. In addition, other fixed assets also have problems such as unrecorded and depreciated assets and ignorance of the acquisition value of assets. This made PT WAN have to initiate the right steps to suppress the problem. This study uses a case study method with a qualitative approach. The processed data is obtained from interviews, conducts observations, analysis internal documents and then evaluated based on COSO 2013 principles. The results showed that there are still deficiencies in internal control over the procurement and management of the company's fixed assets. These weaknesses are the unorganized flow of procurement, recording and sale of assets, not recording of all fixed assets, and lack of knowledge about the process of procuring and recording fixed assets. PT WAN must establish formal documents related to SOPs of fixed assets, labeling the company's equipment and tools, carrying out stock taking of fixed assets every month, re-managing data on all of the company's fixed assets, adding accounting personnel and providing training.

Formation of tools for detecting and preventing falsification of financial statements

The scientific article is devoted to one of the actual and significant problems of the accounting and reporting system - falsification of reports. The financial statements of companies, as the main recognized information channel of interaction between business and society, are not perfect at all. It is determined that financial statements are intended primarily for external users who, based on the results of the analysis, make decisions on certain management issues. Information from external reporting allows not only to determine the level of financial well-being of an organization, but also to describe the dynamics of its activities, identify trends and predict the development of financial situations in the future. The authors note that the quality of management decisions made by external users primarily depends on the reliability and reliability of the information disclosed in the financial statements of organizations, that is, on the degree of transparency. Thus, in today's conditions, the reliability of financial reports as the main information source of the company's activities becomes of particular importance, falsification is a real risk of loss of the quality of reports. The article examines the economic nature of falsification of financial statements, considers ways to detect falsification of financial statements and offers tools for detecting and preventing falsification of financial statements of a company.

Auditors' independence as a Tool for Enhancing the Reliability of Financial Reports

Auditors' independence as a Tool for Enhancing the Reliability of Financial Reports

Accounting Comparability, Conservatism, Executive Compensation-Performance, and Information Quality

This paper investigates the relationship between accounting comparability, executive compensation, conditional and unconditional conservatism, and accounting information quality. The findings suggest that conditional conservatism and accounting comparability have a positive and significant impact on executive compensation. Moreover, accrual earnings management can strengthen the relationship between accounting comparability and executive compensation, whereas this is not the case with actual earnings management. Unconditional conservatism, however, does not significantly influence executive compensation. In the end, determining the correlation between earnings management and conservatism reveals that executives use conditional conservatism to perform opportunistic behaviours and gain more compensation. In light of the current results, it is expected that the assimilation of standardisation processes and their use in conjunction with existing features will enhance information quality, greater reliability of financial reports, and protect public interests.

IFRS Adoption and Financial Reporting Quality in Nigeria: A Conceptual Approach

The adoption of International Financial Reporting Standards (IFRSs) in different countries of the world have become a contemporary issue particularly with regard to the reliability of financial reports. The conceptual and empirical examination of the IFRS adoption and financial reporting quality across different sectors and countries. The study established that some studies used positive approach and some used positive paradigm. Studies used either of primary or secondary source of data, while some used mixed approach. The study found that IFRS adoption are determined by comparing the parameters concerned between pre and post IFRS regimes in given jurisdictions. The review concept and empirical evidences of IFRS adoption and financial reporting quality from many countries reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though its impact has been reported to be positive in majority of studies. Also, few studies report indifferent and negative effects of IFRS adoption on financial reporting quality. The study found that it is argued that IFRS is more financial position focused. It is also observed that the impact of mandatory adoption of IFRS tends to be greater disputed than that caused by voluntary IFRS adoption. In addition, IFRS adoption are found to supersede many other domestic financial reporting standards such as Statement of Accounting Standard (SAS) in Nigeria.

The Effect of SAP Implementation on Quality Financial Statements

Government Regulation No. 71 of 2010 stipulates that the application of Government Accounting Standards (SAP) is a reference in Indonesia in financial reporting to improve the quality, transparency, accountability, and reliability of financial reports. The purpose of this study was to determine whether the application of SAP has an effect on the quality of regional financial reports in Bangka Regency. This research is quantitative using Partial Least Square (PLS) approach. The research data are primary data obtained from distributing questionnaires to 34 Regional Apparatus Organizations (OPD) in Bangka Regency. The results of the study indicate that the application of SAP has an effect on the quality of financial reports. This means that the higher the application of SAP, the better the quality of the financial reports produced by the OPD in Bangka Regency, Bangka Belitung Islands Province.

Pengaruh Pengawasan Keuangan, Pemanfaatan TI, Komitmen Organisasi, Dan Kompetensi SDM Terhadap Keterandalan Pelaporan Keuangan Pemerintah Daerah Kabupaten Jember

This study aims to determine the Effect of Financial Supervision, Utilization of IT, Organizational Commitment, and Competency of Human Resources on the Reliability of Financial Reporting for the Regional Government of Jember Regency. The study used a descriptive method with a quantitative approach, which was carried out by distributing research questionnaires to 100 employees of SKPD financial management in Jember Regency. The data analysis technique in this study used Structural Equation Modeling based on Partial Least Square (PLS-SEM). The results of this study are financial supervision, and organizational commitment have a significant positive effect on the reliability of the financial reporting of the Jember Regency Government. Meanwhile, the use of information technology (IT) and human resource competence has no effect.

PENGARUH TINGKAT KOMPETENSI SUMBER DAYA MANUSIA, TEKNOLOGI INFORMASI, PENGENDALIAN INTERN DAN PENGAWASAN KEUANGAN TERHADAP KEANDALAN PELAPORAN KEUANGAN KEPOLISIAN RESORT PROVINSI JAWA TIMUR

The purpose of this research is to be able to determine the competence of human resources, technology and information, internal control, and financial control on the reliability of a financial report at the East Java Provincial Police. The type of this research is quantitative, in this research the method that will be used in this research is the census method on members of the police who work as treasurers in the financial department of the East Java Police, of which there are 50 people as respondents, while the data analysis technique used is multiple linear regression. . The research results found that HR competence had a significant effect on the reliability of financial reports at the East Java Police, technology and information had no effect on the reliability of financial reports at the East Java Police, internal control had a significant effect on the reliability of financial reports at the East Java Police

The Factors Affecting Accounting Estimation" Depreciation Allowance" and Its Effect on Reliability of Financial Reports – Applied Study in Yemen Corporates, Hadramout –: أثر التقدير المحاسبي لمجمع الإهلاك في مصداقية التقارير المالية – دراسة ميدانية على الشركات اليمنية بحضرموت –

The study aimed to identify the effect of the accounting estimate on the reliability of the financial reports. The study identified three factors that affect the accounting estimate, which are the subject of the estimation, the estimation tool, and the estimator, in the estimation of depreciation provisions, the researchers adopted the descriptive analytical approach; By following the studies and literature in accounting thought, and designing a questionnaire that was distributed to the sample selected for the study. The study reached a set of results, including that the reliability of the financial reports is affected by the subject of the estimation, the estimation tool and the estimator. The depreciation provision is affected by factors including the efficiency of determining the useful life of the asset, the extent to which the asset is used in production, the efficiency of estimating the residual value. One of the most important factors affecting the estimation tool is the flexibility in applying accounting principles and standards, the large size of companies and the size of the profits obtained by the establishment. The most important factors affecting the estimator are the availability of the necessary expertise for those in charge of accounting estimates, the nature and size of the activities that the companies engage in, the extent of the accountant’s knowledge of them, and the absence of an independent Yemeni reference body or organization that trains, qualifies and protects those responsible for accounting estimates. The study recommended the necessity of working on qualifying and training the estimators and finding a reference for them to protect them from management interventions in a way that achieves effective and efficient performance and protects them from legal accountability.

The Influence of Internal Control System, Cash Sales On Regional Asset Management Receipts

The internal control system is a process, which is influenced by human resources and information technology systems, which are designed to help an organization achieve a goal. The internal control system is a way to direct, supervise, and measure the resources of a regional financial management apparatus. The purpose of the internal control system is to achieve goals and guarantee or provide accurate financial reports and ensure compliance with laws and regulations. The internal control system, consisting of policies and procedures used in company operations to provide reliable financial information and ensure compliance with applicable laws and regulations. At the regional financial management apparatus level, the objectives of internal control are related to the reliability of financial reports, timely feedback on the achievement of operational and strategic objectives, and compliance with laws and regulations on cash receipts. At a specific transaction level, internal control refers to actions taken to achieve an objective to ensure payment, receipt of cash from third parties for a service that is performed). Internal control system procedures reduce process variations and cash receipt transactions and provide more accurate results. The population in this study were 44 SKPDs in the Skouw Mabo, Skouw, Yambe, Skouw Sae, and Mosso areas, Muara Tami District, Jayapura City. These four areas are the border areas of the Republic of Indonesia and Papua New Guinea. The sample collection method is purposive sampling by taking samples from the regional financial management apparatus. The data analysis technique used in this study was SEM PLS. The results of this study indicate that the internal control system, cash sales affect cash receipts.

Executive Accountants and the Reliability of Financial Reporting

Using hand-collected data from mandatory disclosures of executive officers, we examine financial reporting outcomes associated with delegating significant accounting responsibilities to an executive accountant, not concurrently serving as the chief financial officer or chief executive officer. We find executive accountants are associated with a significant reduction in the likelihood of restatement. Moreover, we find evidence of a positive association between executive accountants and accrual quality and faster remediation of material weaknesses in internal control when an executive accountant is present. Taken together, this evidence is consistent with more reliable financial reporting at firms with an executive accountant. In contrast, accountants identified in commonly used datasets (i.e., Execucomp or BoardEx) are not consistently associated with the reliability of financial reporting. We highlight the significant differences between datasets, largely attributable to the objectives and sources of the underlying data. We conclude that Execucomp and BoardEx are not substitute datasets for the executive officers disclosed in firms’ 10-K and proxy statement filings. Furthermore, we caution future research to consider which data are most appropriate in the context of each research question. This paper was accepted by Shiva Rajgopal, accounting.

Inflation-Adjusted Accounting Information and the Reliability of Financial Reporting: Empirical Evidence from Egypt

Inflation-Adjusted Accounting Information and the Reliability of Financial Reporting: Empirical Evidence from Egypt

Executive Accountants and the Reliability of Financial Reporting

Using hand-collected data from mandatory disclosures of executive officers, we examine financial reporting outcomes associated with delegating significant accounting responsibilities to an executiv...

Corporate sustainability on causal financial efficiency model in a hierarchical structure under uncertainties

Abstract This study contributes to (1) the financial report attributes through the measurement-based algorithm and uses the financial data of the listed firm to test the validity and reliability of the proposed corporate sustainability model; (2) the impulse response relationship of the four first-level indicators and provides a basis for decision-making to improve the efficiency of a firms' financial operations; and (3) this study applies the primary and secondary data from those listed firms. Still, the financial report is the important sources for the public to obtain operations and accounting information. Few studies are presented financial report with hierarchical and causal interrelationship model in considering the corporate financial sustainability in expert preferences and firm's secondary data together. This study is presented the four parts financial reporting are structured as 1. Earning ability; 2. Efficiency; 3. Debt; and 4. Asset management. The authenticity and reliability of financial reports are inevitably affect the quality of accounting information provided and establishes a decision-making index system that affects the quality of the financial efficiency according to the four aspects. This study proposes to apply the decision making trial and evaluation laboratory and analytical network process together to handle the hierarchical and causal interrelationship. In addition, prior studies are lacking to address in built on the score data of different influencing indicators using panel data vector auto regression model. The result shows the asset management capability has a positively impact on the firms' profitability and asset-liability.