• citations in SCIndeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:4
  • full-text downloads in 30 days:0


article: 1 from 2  
Back back to result list
2012, vol. 41, iss. 3, pp. 22-51
Red flags analysis
Many financial scandals that have happened recently were usually followed by manipulations in financial reports. This only further confirms how important are the information contained in financial reports. If they were not important there would be no need to present them erroneously. State regulatory framework and the accounting profession in the developed market economy countries reacted by striving to build up a better institutional framework for financial reporting to be characterised primarily by an enhanced role of the state in supervising financial reporting practices. In addition to standard financial analysis, financial analysts are increasingly applying some of the non-standard methods that may serve as warning indicators of the presence of creative accounting practice. Practical experiences have developed certain benchmark values that identify the need for additional research in case the values of studied indicators are sending warning signals, in order to avoid making misinformed business decisions. Quantitative warning indicators used by financial analysts are further supported by the so-called qualitative warning indicators which are describing events and activities that may point out at the possible presence of creative financial reporting.
Altman, E., Hotchkiss, E. (2005) Corporate financial distress and bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt. New York: John Wiley & Sons, 3 ed
Beneish, D.M. (1999) The detection of earnings manipulation. SSRN, Working Paper Series
Buffett, W. (2000) CEO letter. Berksiher and Hathaway Annual Reports
Buffett, W. (2006) CEO letter. Berksiher and Hathaway Annual Reports
Cullinan, P.G., Sutton, G.S. (2002) Defrauding the public interest: A critical examination of reengineered audit processes and the likelihood of detecting fraud. Critical Perspectives on Accounting, 13(3): 297-310
Dechow, M.P., Ge, W., Larson, R.C., Sloan, G.R. (2007) Predicting material accounting manipulations. in: Working Paper Series
Graham, B., Dodd, D.L. (1934) Security analysis: Principles and Technique. New York: McGraw-Hill Book Company
Grant, M.R., Visconti, M. (2006) Strategic background to corporate accounting scandals. Long Range Planning, 39
Grove, H., Basilico, E. (2011) Major Financial Reporting Frauds of the 21st Century: Corporate Governance and Risk Lessons Learned. Journal of Forensic & Investigative Accounting, 3 (2):
Grove, H., Cook, T. (2004) Lessons for auditors: Quantitative and qualitative red flags. Journal of Forensic Accounting
Malinić, D. (2009) Savremeni izazovi integralnog istraživanja kvaliteta finansijskih izveštaja. Ekonomika preduzeća, vol. 57, br. 3-4, str. 138-155
Malinić, D. (2009) Prepoznavanje bilansnih rizika. Ekonomika preduzeća, vol. 57, br. 3-4, str. 156-174
Mulford, W.C., Comiskey, E.E. (2002) Financial numbers game: Detecting creative accounting practices. New York: John Wiley & Sons, Inc
Palepu, K.G., Healy, P.M., Bernard, V.L. (2003) Business analysis and valuation: Using financial statements, text and cases. New York: McGraw-Hill, str. 411
Rockwood, M.R. (2002) Accounting: Focus on the red flags.
Rаnkоvić, М.Ј. (2003) Teroija bilansa. Beograd: Еkоnоmski fаkultеt
Schilit, H.M. (2010) Financial Shenanigans: Detecting Accounting Gimmicks That Destroy Investments. CFA Institute
Stevanović, N., Malinić, D., Milićević, V. (2009) Upravljačko računovodstvo. Beograd: Ekonomski fakultet
Stevanović, N. (2009) Bilansno-političke implikacije po kvalitet dobitka. Ekonomika preduzeća, Specijalni broj: Tajne bilansa - menadžerski pristup, Beograd


article language: Serbian
document type: Original Scientific Paper
published in SCIndeks: 22/03/2013

Related records

Ekonomika preduzeća (2008)
Creative financial reporting as a source of information risks
Malinić Dejan

Ekonomika preduzeća (2009)
Savremeni izazovi integralnog istraživanja kvaliteta finansijskih izveštaja
Malinić Dejan

Ekonomika preduzeća (2009)
Prepoznavanje bilansnih rizika
Malinić Dejan

show all [37]