Analysis of Financial Reporting as a Method of Detection of the Facts of Falsification

DOI

10.2991/aebmr.k.200509.015How to use a DOI?

Keywords

financial reporting, falsification, detection, analysis

Abstract

Financial Reporting shows the status of assets, financial results, structure of capital and cash flow of the economic entity. The opinions and decisions of vested interests depend on how reliable is the data depicted in reporting. Often firm managers use a variety of measures to «sugarcoat» Financial Reporting and affect decisions of vested interests. Falsification of Financial Reporting misleads investors, creditors and other entities. That is why the detection of falsification of Financial Reports is the main task not only of administration but also of internal controlling branches. The goal of this research is to develop a procedure based on the analysis of rate variation of financial ratios for the detection of Financial Reporting falsifications. From the set goal, the next tasks were found - a sample of financial rations traditionally used in Russia are observed carefully on variations of rates where proof of falsification can be stated; make a calculation of coefficients using the Financial Reports on a given sample of firms during the specified period; analyze the rates of calculated ratios and detect the availability of falsifications in given reports. A novelty of the research is based on the development of a method using financial indexes applied in the Russian reporting practice.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yuriy I. Sigidov
AU  - Marina A. Korovina
AU  - Natalya S. Vlasova
PY  - 2020
DA  - 2020/05/12
TI  - Analysis of Financial Reporting as a Method of Detection of the Facts of Falsification
BT  - Proceedings of the International Conference on Economics, Management and Technologies 2020 (ICEMT 2020)
PB  - Atlantis Press
SP  - 77
EP  - 80
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200509.015
DO  - 10.2991/aebmr.k.200509.015
ID  - Sigidov2020
ER  -