A research note: Are auditors unable to detect classification shifting or merely not willing to report it? Evidence from India

Desai, Naman; Nagar, Neerav

doi:10.1016/j.jcae.2016.06.002

Cited by 14 publications

(10 citation statements)

References 48 publications

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“…Several previous studies have attempted to explain the association between classification shifting and other research variables (for example , Abernathy et.al. 2014;Chae& Nakano, 2015;Desai& Nagar, 2016). Overall, these studies provide important insights into the reasons that encourage management to practice classification shifting.…”

Section: Descriptive Analysis and Synthesismentioning

confidence: 94%

“…al, 2002) A considerable amount of research indicated that auditors fail to curb this form of earnings management in countries with weak, inefficient legal institutions, as the willingness to report such misclassifications is primarily driven by the perceived strength of the institutional controls and legal regimes. (Haw et.al, 2011;Desai& Nagar, 2016) 3. Discussion and implications…”

Section: Undetectability By External Monitorsmentioning

confidence: 99%

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Motivations for Classification Shifting: A Systematic Review

Almaleeh

2019

AJFA

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The purpose of the current paper is to highlight the motivations that may encourage managements of firms to shift core expenses to special items in order to inflate core or operating earnings i.e. to practice classification shifting, which would have an effect on the decisions of financial statements' users. This was done through conducting a systematic review on the available literature about classification shifting. The most obvious findings to emerge from this study is that management may engage in classification shifting for the reason that it is less costly than other earnings management methods, the firm being in current or potential state of financial distress, the desire of the management of the firm to meet or beat earnings benchmarks, the ownership structure of the firm having some characteristics that encourage management to engage in such a practice, the firm performing in a weak corporate governance environment, or due to the fact that classification shifting is tough to be detected by external monitors compared to other earnings management methods.

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Section: Descriptive Analysis and Synthesismentioning

confidence: 94%

Section: Undetectability By External Monitorsmentioning

confidence: 99%

Motivations for Classification Shifting: A Systematic Review

Almaleeh

2019

AJFA

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“…(Athanasakou, et al, 2011;Zalata and Roberts, 2016) ‫نيا‬ ‫اس‬ ‫نرق‬ ‫ش‬ ‫ني‬ ‫ف‬ ‫نت‬ ‫يم‬ ‫اليي‬ ‫اسات‬ ‫الدر‬ ‫يجت‬ ‫اسي‬ ‫كما‬ . (Haw, et al, 2011) ‫ناد‬ ‫ب‬ ‫نب‬ ‫يباي‬ ‫نال‬ ‫س‬ ‫الد‬ ‫في‬ ‫المبالغة‬ ‫بغية‬ ‫الدالل‬ ‫قائمة‬ ‫نى‬ ‫عم‬ ‫نرافات‬ ‫المص‬ ‫نن‬ ‫م‬ ‫نغيمية‬ ‫اليش‬ ‫ناد‬ ‫الب‬ ‫نب‬ ‫يباي‬ ‫نبلل‬ ‫ال‬ ‫نن‬ ‫م‬ ‫اليشغيمي‬ ‫الل‬ ‫اسة‬ ‫در‬ ‫يائج‬ ‫اييعق‬ ‫يشغيمية.‬ ‫يير‬ ‫اد‬ ‫ب‬ ‫ها‬ ‫أ‬ (Noh, et al, 2014 (Haw, et al, 2011;Desai and Nagar, 2016 (Ertimur, et al, 2003;Marquardt and Wiedman, 2004 (McVay, 2006, Cohen et al, 2009, Zalata and Roberts, 2017, Fan, et al, 2010, Fan, et al, 2017…”

Section: ‫البحث‬ ‫ممخص‬unclassified

أثر ممارسات إدارة الأرباح من خلال إدارة عرض بنود قائمة الدخل على جودة الأرباح المحاسبیة مع دراسة تطبیقیة على الشرکات المساهمة المصریة

محمود¹

2020

مجلة الاسکندریة للبحوث المحاسبیة

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This research aims to examine the effect of the company's management practicing earning management methods through intentional misclassify of revenue and expense items in the income statement(classification shifting) on the operating income Quality by applying to a sample of corporation companies registered on the Egyptian Stock Exchange during the period from 2012 to 2018, and to achieve study goal, The researcher depend on two models, one of which links the intentional misclassifying of expenses items in the income statement and its implication on the operating income quality. The researcher adopted the proposed model in a study (McVay, 2006), which is one of the most common models in accounting literature in the field of intentional misclassifying of expenses items in the income statement, and it is considered the first study that presented an applied evidence to reclassifying the of expenses items in the income statement in the context of American companies, and the second model link between the intentional misclassifying of revenue items in the income statement and its implications on the operational income quality, and the researcher adopted the proposed model in a study (Malikov, et al., 2018).The importance of the study is that it provides an imperial evidence from the Egyptian business environment, as the researcher relied on companies operating in the real estate sector, for sample of (19) companies, for the period from 2012 to 2018 (133 observations), and the researcher concluded that there is evidence from the field of the environment Egyptian business on these companies' practices of earning management by managing the items of operating expenses and including them in non-operating expenses as well as managing the presentation of non-operating revenue items and their inclusion in operating revenues with the aim of inflating operating income, which adversely affected ‫محمود‬ ‫العيسوي‬ ‫الحميد‬ ‫عبد‬ ‫د/‬ .............. ‫بنود‬ ‫عرض‬ ‫إدارة‬ ‫خالل‬ ‫من‬ ‫األرباح‬ ‫إدارة‬ ‫ممارسات‬ ‫أثر‬ 3 the quality of operating income. The researcher believes that this study is one of the first studies at the level of the Arab world -within the limits of the researcher's knowledge -that dealt with the relationship between intentional misclassifying of income statement items and operating income quality.The results of this study have implications for the professional bodies responsible for setting accounting standards as well as supervisory and oversight bodies for Egyptian companies, whereby artificially inflating operational income affects investment decisions and thus resource allocation decisions.

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“…Penerapan teori fraud pentagon dalam penelitian ini menunjukkan bahwa sebuah kompetensi menggambarkan kemampuan karyawan untuk memahami pengendalian internal yang ada di dalam suatu organi sasi, kemudian mampu mengembangkan strategi penggelapan yang canggih, serta dapat melakukan kontrol terhadap situasi sosial yang bisa memberikan keuntungan yaitu dengan mempengaruhi pihak lain agar bersedia melakukan kerja sama dengannya (Abuazza, Mihret, James, & Best, 2015;Ako mea-Frimpong, Andoh, & Ofosu-Hene, 2016;Boyle, DeZoort, & Hermanson, 2015;Desai & Nagar, 2016). Hal ini mengindikasikan bah wa sistem pengendalian yang dilakukan oleh Inspektorat masih lemah sehingga bisa mem buka peluang bagi auditee untuk melakukan fraud.…”

Section: Hasil Dan Pembahasanunclassified

Efektivitas Probity Audit Dalam Mencegah Kecurangan Pengadaan Barang Dan Jasa

Ramadhan

Arifin

2019

jamal

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Abstrak: Efektivitas Probity Audit dalam Mencegah Kecurangan Pe ngadaan Barang dan Jasa. Studi ini berupaya meneliti efektivitas pe nerapan probity audit dalam pencegahan kecurangan penyediaan barang dan jasa. Pendekatan studi kasus digunakan sebagai metode pada In spektorat Provinsi DKI Jakarta tahun 2016. Hasil studi menunjukkan bahwa probity audit yang dilaksanakan oleh Inspektorat Provinsi DKI Jakarta selama tahun 2016 belum optimal. Hal tersebut disebabkan ma sih digunakannya sampling data dalam proses probity audit dan tahap an probity audit juga belum dilakukan secara keseluruhan. Selain itu, terdapat hambatan pada penerapan probity audit berupa adanya keter batasan sarana dan prasarana, anggaran, kompetensi auditor, waktu, sumber daya manusia, dan dokumentasi.

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A research note: Are auditors unable to detect classification shifting or merely not willing to report it? Evidence from India

Cited by 14 publications

References 48 publications

Motivations for Classification Shifting: A Systematic Review

Motivations for Classification Shifting: A Systematic Review

أثر ممارسات إدارة الأرباح من خلال إدارة عرض بنود قائمة الدخل على جودة الأرباح المحاسبیة مع دراسة تطبیقیة على الشرکات المساهمة المصریة

Efektivitas Probity Audit Dalam Mencegah Kecurangan Pengadaan Barang Dan Jasa

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