Misleading Forecasts in Accounting Estimates: A Form of Ethical Blindness in Accounting Standards?

Smieliauskas, Wally; Bewley, Kathryn; Gronewold, Ulfert; Menzefricke, Ulrich

doi:10.1007/s10551-016-3289-1

Cited by 17 publications

(15 citation statements)

References 39 publications

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“…Misappropriation of assets 20 (Hall, 2009;Smieliauskas et al, 2018) Manipulations of earnings (Hall, 2009;Kelly & Murphy, 2019) Financial Statements (Brown et al, 2020;Hall, 2009) Table 1. Categorization of Articles on Accounting Fraud…”

Section: Type Of Ethical Blindness Number Of Papers Important Studiesmentioning

confidence: 99%

“…The accounting field has numerous ethical accounting standards (IAS (Service, 2020), GAAP (Board, 2020), IFRS (Standards, 2020), FASB (Board, 2020)). However, ethical blindness has been a major challenge for compliance leading to manipulations of accounting principles (Smieliauskas et al, 2018). Companies adopting either the US GAAP (FASB) used in the US or the International Financial Reporting Standards (IFRSs) adopted worldwide have been accused of material misstatement of accounting estimates due to unintentional or intentional management bias (Smieliauskas et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…However, ethical blindness has been a major challenge for compliance leading to manipulations of accounting principles (Smieliauskas et al, 2018). Companies adopting either the US GAAP (FASB) used in the US or the International Financial Reporting Standards (IFRSs) adopted worldwide have been accused of material misstatement of accounting estimates due to unintentional or intentional management bias (Smieliauskas et al, 2018). The weaknesses in financial reporting standards open a back door for unethical behavior, calling for the auditing of the standards themselves and a close examination of how they may facilitate fraudulent and unethical reporting (Amernic & Craig, 2010).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The effect of emergent technologies on accountant`s ethical blindness

Sherif¹,

Mohsin²

2021

IJDAR

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The accounting field has come under scrutiny after a number of high-profile ethical scandals dealing with organizational fraud has been tied to the profession. While several accounting standards have been established to ensure the integrity, objectivity, and professional competency of accountants; the power of the situation and individual motivations are challenges that may ethically blind accountants and result in fraud. In this paper, we explore the combinative effect of three emergent technologies: Blockchain-based, IoT-enabled and AI-empowered distributed ledger on reducing the risk of accounting ethical blindness. We examine how technical features of emergent technologies present both gains and challenges to ethical decision-making for the accounting profession. While some of these challenges can be overcome by adopting all three emerging technologies, others require social and legal interference to avoid the challenges of these technologies. Keywords: Emergent technology, accounting ethical blindness, blockchain, artificial intelligence, internet of things.

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Section: Type Of Ethical Blindness Number Of Papers Important Studiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The effect of emergent technologies on accountant`s ethical blindness

Sherif¹,

Mohsin²

2021

IJDAR

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“…The establishment of codes of ethics by senior management and the board of directors is essential as an integral part of Corporate Social Responsibility [151]. Financial statements must be prepared ethically, since compliance with accounting standards does not necessarily guarantee ethical reports in all contexts [152]. Along these lines, Carcello, Hermanson, and Ye [76] propose the establishment of ethical measures monitored by the CRO (Chief Risk Officer), CCO (Chief Compliance Officer), CEthO (Chief Ethics Officers), duly informing the audit committee.…”

Section: Corporate Governance/board Of Directorsmentioning

confidence: 99%

Research Topics in Accounting Fraud in the 21st Century: A State of the Art

2019

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Companies play a role in society that clearly goes beyond mere economic interest. Their contribution to social development and to the sustainability of the territory where they are located seems unquestionable. However, after the great financial scandals of companies such as ENRON, WorldCom or AHOLD, interest groups require accurate and transparent financial information. The development of more demanding financial reporting standards seems, however, not to have been up to scratch, since accounting fraud continues to be detected all over the world. The search, therefore, for possible causes that may induce companies to act unethically was the main motivation behind this research. To do this, a review of the literature in high-impact journals that has dealt with accounting fraud, covering the main lines of research, was carried out. The findings of the literature review highlight the importance of responsible corporate governance and good accounting practices, as well as the importance of certain psychological characteristics of managers and employees as enhancers of the lack of ethics. It is clear that the social cost of accounting fraud should be minimized, and governments should develop specific policies that combine responsible corporate governance in companies with the sustainability of their environment.

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“…Both tactics overshadow the importance of coercive taxation via mispricing practices (Fung et al, 2011). In academic discourse, misleading is where organizations, at first sight, present themselves as law-obedient when they actually mislead the institutions from discovering the hard facts (Entwistle et al, 2006; Smieliauskas et al, 2018; Westphal and Zajac, 2001).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Decoupling in International Business

Mandrinos

Mahdi

Lin

2019

Journal of General Management

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Following the academic discourses that the International Business (IB) has not yet seen the levels of academic intrusions on decoupling a thorny ethical dilemma evident in other fields that explains why organizations when strive for conformity, they may attempt to preclude the necessity of their formal structure with an intention to show obedience towards institutional settings while at the same time actually practicing business in ways that they believe are more efficient. This study attempts to bridge this important gap and understanding of decoupling in the burgeoning stream of IB where export organizations decouple from the actual substantive conformity to the Intellectual Property Rights and the Protected Designation of Origin certification requirements. This policy to practice decoupling in the form of avoidance from institutional pressures and concealment manifest itself in the organizations zeal to placate the pressures of resource criticalities brought about by this unique isomorphic setting of the home and host country institutional landscape(s). Thus theoretically, tight coupling between institutional rules (and pressures) and export organizations does not necessarily translate from form to function but rather ceremonial conformity, which may further be heightened by onward problems of enforcement of these rules in the same institutional settings therein.

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Misleading Forecasts in Accounting Estimates: A Form of Ethical Blindness in Accounting Standards?

Cited by 17 publications

References 39 publications

The effect of emergent technologies on accountant`s ethical blindness

The effect of emergent technologies on accountant`s ethical blindness

Research Topics in Accounting Fraud in the 21st Century: A State of the Art

Decoupling in International Business

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