Download or read book The Relationship of the CEO Vs Internal Audit with Earnings Management written by Marcin Stryczek and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The present thesis examines the influence of an increased organisational power of the Chief Executive Officer (CEO) on the monitoring of the Internal Audit Function (IAF) and, in consequence, on the extent of earnings management. Lisic, Neal, Zhang, and Zhang (2016) find that when the CEO power is low, the financial expertise of the Audit Committee (AC) is negatively related to the incidence of internal control weaknesses. However, when the power of the CEO increases, this relation monotonically weakens until it becomes positive with sufficiently high level of the CEO power. It is believed that due to the specific role of the IAF in the corporate governance and its unique relationship with the AC, a powerful CEO might be able to exert a similarly moderating effect on the work of internal auditors. In order to test this hypothesis, three empirical models have been created to assess how the CEO power affects the relationship between the size of abnormal accruals according to the model proposed by Kothari, Leone, and Wasley (2005), and (1) the existence of a separate IAF, (2) the direct reporting lines of the function, and (3) potential full outsourcing of the function. Outcomes of the models suggest that the CEO power does not moderate the negative relation between the existence of a separate IAF and the extent of earnings management. Nevertheless, the CEO power appears to negatively moderate the connection between the reporting lines of the IAF to the AC or the Board of Directors (BoD) and the extent of earnings management. Finally, the CEO power does not appear to moderate the relationship between the decision to fully outsource the IAF to the external providers and the extent of earnings management.

Download or read book Internal Audit Quality and Earnings Management written by Douglas F. Prawitt and published by . This book was released on 2010 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Internal auditors often perform work that is relevant to their host entities' financial reporting processes, yet little research attention has focused on the effects of internal auditing on companies' external financial reporting. Using a unique and previously unavailable data set, we investigate the relation between internal audit function (IAF) quality and earnings management. We measure IAF quality using a composite measure comprising six individual components of IAF quality based on SAS No. 65, which guides external auditors in assessing the quality of an IAF with respect to its role in financial reporting. Earnings management is measured using two separate proxies, (1) abnormal accruals and (2) the propensity to meet or barely beat analysts' earnings forecasts. We find evidence that IAF quality is associated with a moderation in the level of earnings management as measured by both proxies.

Download or read book Corporate Governance and Its Implications on Accounting and Finance written by Alqatan, Ahmad and published by IGI Global. This book was released on 2020-09-25 with total page 425 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the global financial crisis, the topic of corporate governance has been gaining momentum in accounting and finance literature since it may influence firm and bank management in many countries. Corporate Governance and Its Implications on Accounting and Finance provides emerging research exploring the implications of a good corporate governance system after global financial crises. Corporate governance mechanisms may include board and audit committee characteristics, ownership structure, and internal and external auditing. This book is devoted to all topics dealing with corporate governance including corporate governance characteristics, board diversity, CSR, big data governance, bitcoin governance, IT governance, and governance disclosure, and is ideally designed for executives, BODs, financial analysts, government officials, researchers, policymakers, academicians, and students.

Download or read book Earnings Management and Corporate Governance An Investigation of Financial Statement Reporting of Publicly Listed Companies in Nigeria written by Ademola Akinteye and published by GRIN Verlag. This book was released on 2019-12-09 with total page 862 pages. Available in PDF, EPUB and Kindle. Book excerpt: Doctoral Thesis / Dissertation from the year 2015 in the subject Business economics - Investment and Finance, grade: Great Distinction, UGSM-Monarch Business School Switzerland (Accounting and Finance), course: Doctor of Philosophy in Finance, language: English, abstract: The dissertation examined Earnings Management and Corporate Governance Governance Practices of the firms that are listed on the floor of the Nigerian Stock Exchange. The researcher investigated the published financial statements of all the listed companies across all the sectors of the exchange using empirical quantitative research methods. Al the variables of earnings management were extracted from the published annual financial statements and Directors Annual Reports through Content Analysis. The paper further explored all the variables of corporate governance as published by the Directors in the Annual Reports in the Financial Statements and through a face to face recorded interviews of the members of the Board of Directors, the members of the Audit Committees and the Heads of Internal Audit Functions in the Listed Public Companies. The study documented that companies that are listed on the Nigerian Stock Exchange are involved in both the upward and downward earnings management practices. This findings cut across all the Sectors and categorization of the companies on the Nigerian Stock Exchange. The research thus recommended the need for better oversight by the Board of Directors, the Audit Committee and the Market Regulators mainly the Security and Exchange Commission and the Nigerian Stock Exchange. The findings of the Research on Corporate Governance is mixed. In certain sectors, evidence of strong corporate governance are documented as reflected in the quality of Board Members, the Quality of the deliberations at the Board meetings, the independence of the Board, the independence of the Audit Committee and the independence and effectiveness of the Head of the Internal Audit function measured by the reporting line of the holder of this role. In some sectors, the ingredients of strong corporate governance were missing thus suggesting a need for a more stricter regime of corporate governance to be implemented in these corporations.

Download or read book Comparative Research on Earnings Management Corporate Governance and Economic Value written by Vieira, Elisabete S. and published by IGI Global. This book was released on 2021-02-12 with total page 433 pages. Available in PDF, EPUB and Kindle. Book excerpt: New trends are emerging regarding earnings management and corporate governance showing similarities and striking differences in the practices of different countries and economies. These new trends currently shape the field of modern corporate governance with crucial issues being looked at in governance law and practices, accounting systems, earnings quality and management, stakeholder involvement, and more. In order to advance these new avenues in corporate governance, research looks at accounting policies firms use in different opportunistic circumstances in order to manage earnings, the corporate governance practices in different countries, firm performance, and other dimensions of companies. The understanding of these topics is beneficial in understanding the current state of different types of firms and their practices in modern times. Comparative Research on Earnings Management, Corporate Governance, and Economic Value is focused on the investigation of key challenges and perspectives of corporate governance and earnings management and outlines possible scenarios of its development. The chapters explore this new avenue of research and cover theoretical, empirical, and experimental studies related to different themes in the global context of earnings management and corporate governance. This book is ideal for economists, businesses, managers, accountants, practitioners, stakeholders, researchers, academicians, and students who are interested in the current issues and advancements in corporate governance and earnings management.

Download or read book The Relationship Between Internal Audit Assurance Frequency and Earnings Manipulation Intent and Behavior written by Dereck Barr-Pulliam and published by . This book was released on 2018 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study uses Ajzen's (1991) theory of planned behavior (TPB) to examine whether the internal audit function's use of continuous auditing affects managers intent and actual behavior related to earnings manipulation. I conduct an experiment where 265 corporate managers assume the role of a divisional vice president incentivized by an annual bonus based on divisional performance. At midyear, participants signal their intent and actual earnings manipulation behavior in a setting where the division is on target to miss the annualized earnings target if the manager does nothing. Consistent with theory, univariate analyses suggest that managers who indicate higher perceptions on each of the three TPB elements were more likely to manipulate earnings. Multivariate analyses support a positive relationship between each measure and earnings manipulation intent, however, the attitudes measure is statistically insignificant. Related to actual behavior, I predict and find that managers who intend to manipulate earnings actually do so. Further, I find that participants who intend to manipulate earnings prefer to use accounting estimates relative to accounting expenditures as their earnings manipulation mechanism in this setting. In additional analyses, I find managers with current or prior audit committee experience were less likely to manipulate earnings. Lastly, I find that managers are indeed less likely to manipulate earnings when the internal audit function uses continuous auditing. This study contributes to knowledge by disentangling earnings manipulation intent from actual behavior. Results of the study should be of interest to auditors, academics, and financial statement preparers.

Download or read book Leading the Internal Audit Function written by Lynn Fountain and published by CRC Press. This book was released on 2016-04-05 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book, the author presents lessons learned from her extensive experience as a CAE to help internal auditors understand the challenges, issues, and potential alternative solutions when executing the role. The book explains how to clarify management expectations for the internal audit and balance those expectations with the IIA Standards. It examines the concept of risk-based auditing and explains how to determine whether management and the internal audit team have the same objectives. It also looks at the internal auditor's role in corporate governance and fraud processes.

Download or read book Executive Compensation and Earnings Management Under Moral Hazard written by Bo Sun and published by DIANE Publishing. This book was released on 2010-08 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analyzes executive compensation in a setting where managers may take a costly action to manipulate corporate performance, and whether managers do so is stochastic. Examines how the opportunity to manipulate affects the optimal pay contract, and establishes necessary and sufficient conditions under which earnings management occurs. The author¿s model provides a set of implications on the role earnings management plays in driving the time-series and cross-sectional variation of executive compensation. In addition, the model's predictions regarding the changes of earnings management and executive pay in response to corporate governance legislation are consistent with empirical observations. Charts and tables.

Download or read book Ethics and the Internal Auditor s Political Dilemma written by Lynn Fountain and published by CRC Press. This book was released on 2016-12-12 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book helps auditors understand the reality of performing the internal audit role and the importance of properly managing ethical standards. It provides many examples of ethical conflicts and proposes alternative actions for the internal auditor. Internal auditors are well-schooled on the IIA Standards, but the reality is that the pressure placed on internal auditors related to execution of work and upholding ethical standards can be very difficult. Regardless of best practice or theory, auditors must be personally prepared to manage through issues they run across.

Download or read book Earnings Management written by Joshua Ronen and published by Springer Science & Business Media. This book was released on 2008-08-06 with total page 587 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?

Download or read book The Effects of the Internal Audit Function on Real and Accrual Earnings Management During the Global Financial Crisis in the US Market written by Turki Al Barak and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Earnings Management and Corporate Governance An Investigation OfFinancial Statement Reporting of Publicly Listed Companies in Nigeria written by Ademola Akinteye and published by . This book was released on 2019-10-22 with total page 868 pages. Available in PDF, EPUB and Kindle. Book excerpt: Doctoral Thesis / Dissertation from the year 2015 in the subject Business economics - Investment and Finance, grade: Great Distinction, UGSM-Monarch Business School Switzerland (Accounting and Finance), course: Doctor of Philosophy in Finance, language: English, abstract: The dissertation examined Earnings Management and Corporate Governance Governance Practices of the firms that are listed on the floor of the Nigerian Stock Exchange. The researcher investigated the published financial statements of all the listed companies across all the sectors of the exchange using empirical quantitative research methods. Al the variables of earnings management were extracted from the published annual financial statements and Directors Annual Reports through Content Analysis. The paper further explored all the variables of corporate governance as published by the Directors in the Annual Reports in the Financial Statements and through a face to face recorded interviews of the members of the Board of Directors, the members of the Audit Committees and the Heads of Internal Audit Functions in the Listed Public Companies. The study documented that companies that are listed on the Nigerian Stock Exchange are involved in both the upward and downward earnings management practices. This findings cut across all the Sectors and categorization of the companies on the Nigerian Stock Exchange. The research thus recommended the need for better oversight by the Board of Directors, the Audit Committee and the Market Regulators mainly the Security and Exchange Commission and the Nigerian Stock Exchange. The findings of the Research on Corporate Governance is mixed. In certain sectors, evidence of strong corporate governance are documented as reflected in the quality of Board Members, the Quality of the deliberations at the Board meetings, the independence of the Board, the independence of the Audit Committee and the independence and effectiveness of the Head of the Internal Audit function measur

Download or read book Corporate Governance and Financial Reporting Mechanisms of governance relevant to financial reporting written by Niamh Brennan and published by . This book was released on 2008 with total page 446 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Investigation of Governance and Fraudulent Earnings Management written by Imad Izzat Youssif and published by Universal-Publishers. This book was released on 2015-08-19 with total page 119 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research paper outlines the summary of the key components of a research study that examined earnings management by analyzing the effect of external and internal corporate governance mechanisms on earnings management with an emphasis on external factors. The focus on corporate governance has been emphasized over the past decade by the activities of predators, through corporate collapses, and by previously unimaginable strategic developments. This research study is outlined as follows: research questions and hypotheses, comprehensive description of survey methodology, data collection, and sampling design. The research highlights the process of how the study was conducted as well as the purpose and importance of the research.

Download or read book Audit Committee Board of Director Characteristics and Earnings Management written by April Klein and published by . This book was released on 2008 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether audit committee and board characteristics are related to earnings management by the firm. The motivation behind this study is the implicit assertion by the SEC, the NYSE and the NASDAQ that earnings management and poor corporate governance mechanisms are positively related. A non-linear negative relation is found between audit committee independence and earnings manipulation. Specifically, a significant relation is found only when the audit committee has less than a majority of independent directors. Surprisingly, and in contrast to the new regulations, no significant association is found between earnings management and the more stringent requirement of 100% audit committee independence. Empirical evidence also is provided that other corporate governance characteristics are related to earnings management. Earnings management is positively related to whether the CEO sits on the board's compensation committee. It is negatively related to the CEO's shareholdings and to whether a large outside shareholder sits on the board's audit committee. These results suggest that boards structured to be more independent of the CEO may be more effective in monitoring the corporate financial accounting process.

Download or read book The Role of Internal Audit in Corporate Governance Management written by Philomena Leung and published by . This book was released on 2003 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Proceedings of the International Colloquium on Business and Economics ICBE 2022 written by Rahmawati Rahmawati and published by Springer Nature. This book was released on 2023-02-10 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is an open access book. Doctoral Program of Economics and Business Faculty, Universitas Sebelas Maret organizes the 2022 International Colloquium onBusiness and Economics. The conference will be conducted bothonline and offline (hybrid) in Economic Faculty of UNS, Solo, onSeptember 27-28, 2022. In this conference, 30 papers were selectedfor international proceedings. Faculty of Economics and Business Universitas Sebelas Maret is one ofthe respectable Business School in Indonesia. In the recent releasefrom the Times Higher Education (THE), the faculty is categorized asTop 10 Economics and Business Faculty among hundreds University inIndonesia. Currently, our faculty have 3 undergraduate degrees, 3master’s degrees, and 1 doctoral degree program and all of them areaccredited with a rank “A”.