Explores the impact that recent fraudulent financial reporting has had on the capital markets. Attempts to examine the stock market reaction, both to return and risk, to fraudulent financial reporting that has occurred in major corporations during the decade 1990-1999. Finds that capital market impact is significant in dollar terms with strong negative announcement effects the day before and on the day of a news event. Concludes that auditor and regulator vigilance needs to be strongly maintained in monitoring firms' financial reporting.

ChatGPT, a language-learning model chatbot, has garnered considerable attention for its ability to respond to users’ questions. Using data from 14 countries and 186 institutions, we compare ChatGPT and student performance for 28,085 questions from accounting assessments and textbook test banks. As of January 2023, ChatGPT provides correct answers for 56.5 percent of questions and partially correct answers for an additional 9.4 percent of questions. When considering point values for questions, students significantly outperform ChatGPT with a 76.7 percent average on assessments compared to 47.5 percent for ChatGPT if no partial credit is awarded and 56.5 percent if partial credit is awarded. Still, ChatGPT performs better than the student average for 15.8 percent of assessments when we include partial credit. We provide evidence of how ChatGPT performs on different question types, accounting topics, class levels, open/closed assessments, and test bank questions. We also discuss implications for accounting education and research.

The accounting profession has recognized the importance of emphasizing written and oral communications skills in the accounting curriculum. Innovations in tech nology have greatly enhanced educators' abilities to incorporate instruction in such skills. A survey of practitioners indicates strong agreement with the new writing requirements of the CPA exam. In addition, they endorse the use of information technology in preparing documents based on specific models and prescribed criteria.

PurposeWith the passage of the Sarbanes‐Oxley Act of 2002, corporate legal counsel has an increasing responsibility related to fraud. The purpose of this paper is to focus on financial reporting fraud resulting in the false presentation of operating results and financial position to the public, lenders, taxing authorities or other corporate stakeholders.Design/methodology/approachThe paper reviews cases with a focus on financial reporting fraud as identified by corporate counsel.FindingsThe ways in which corporations can utilise corporate counsel to protect themselves from financial statement and other reporting frauds.Practical implicationsThis paper provides guidance to corporate counsel as to some of the common forms of financial statement fraud and the risk factors (red flags) that may indicate the presence of fraud.Originality/valueCorporate counsel, by virtue of their natural involvement in the negotiation of contracts and customer/vendor disputes, as well as their consulting role to top management in many types of business transactions and problems, are uniquely positioned to identify financial statement fraud issues and other financial disclosure problems.

In January 2009, the Securities and Exchange Commission (SEC) mandated the use of eXtensible Business Reporting Language (XBRL) financial statement reports. The current filing process with the SEC will undergo a major change under XBRL, but the new rules are taking effect over a three‐year phase‐in period. What lessons have we learned from the first wave of XBRL filers with the SEC? And what future planning should Phase 2 and Phase 3 companies undertake? © 2010 Wiley Periodicals, Inc.