Behavioral accounting research deals with a complex set of phenomenon including the broad domain of human decision making under uncertainty. Two aspects of decision making of particular relevance to accounting and auditing research are two constructs that are inexorably interrelated: uncertainty and information (evidence). This paper introduces a theoretical perspective that enriches the knowle...

Management-prepared financial statement projections are an important component of the income approach to business valuation, specifically the discounted cash flow valuation method. And, the discounted cash flow valuation method is frequently used and assigned material weighting in the business valuation performed for gift tax, estate tax, and generation-skipping tax purposes. This discussion co...

We introduce a new methodology that incorporates advanced higher moments evaluation in a new approach of the Portfolio Selection problem, supported by effective Computational Intelligence models. The Evolutional Portfolio Optimization System (EPOS) extracts hidden patterns out of the numerous accounting data and financial statements filtering misguiding effects such as noise or fraud, offering ...

This paper uses Baudrillard’s orders-of-simulacra theories to investigate the use of inspections at the Hudson’s Bay Company. These inspections were comparable to “modern” internal audits. They were being conducted in 1871, 50 years prior to the accepted date of the arrival of modern internal auditing. Inspections were started as the Hudson’s Bay Company was getting easier to manage, which was ...

This paper studies voluntary disclosure when (a) there is uncertainty about managerial propensity to report truthfully, (b) some components of the firm’s value may be certified for a cost (“hard”), (c) other components may be disclosed but not certified free of misstatements (“soft”). We establish that untruthful managers are more likely to certify hard information and that, among truthful mana...

We study the impact that financial intermediation can have on productivity through the alleviation of credit constraints in occupation choice and/or an improved allocation of risk, using both static and dynamic structural models as well as reduced form OLS and IV regressions. Our goal in this paper is to bring these two strands of the literature together. Even though, under certain assumptions,...

External auditors are very important for third partite because they add credibility to financial statements and third party can make decision in accord of financial statement audited. In recent years, the auditing and accounting profession faced scrutiny because of auditing scandals. Recent high profile accounting controversies such as Enron and World have highlighted the continuing debate abou...

Studies examining what factors influence relevance of reported numbers in financial statements is becoming increasingly important in the accounting and finance literature. This is an important area for regulators in particular. An understanding of what factors contribute to or detract from value relevance of accounting numbers is essential in the light of globalization that has resulted in inte...

The interests of users of financial statements are, in theory, paramount to accounting standard-setters. However, there is a dearth of research into users’ participation in, and influence on, the process of setting accounting standards. The enhanced status now accorded to the International Accounting Standards Board (IASB) offers the opportunity to examine these issues in a new regulatory conte...

63 he financial system and all of its various components (institutions, markets, and clearing and settlement systems) are supported by a set of arrangements, including government policies, that influence its structure and facilitate its operation. Taken together, these arrangements form the financial system's infrastructure. Experience has demonstrated that a key determinant of a robust financi...