Business Commons^™

Regulating By New Technology: The Impacts Of The Sec Data Analytics On The Sec Investigations, Tian Deng

Dissertations and Theses Collection (Open Access)

Despite the Securities and Exchange Commission’s (SEC) growing emphasis on data analytics in recent years, there is scant research about whether the investment in data analytics accomplishes its objective of enhancing enforcement efficiency. This study examines the effects of the SEC regional offices’ use of data analytics on their investigation outcomes. The utilization of data analytics reduces information processing costs, thereby streamlining the enforcement process as a whole. I find that the SEC’s use of data analytics is associated with a 12% increase in the SEC’s investigation success rate. Such an improvement is greater for firms whose disclosure are more …

Mitigating Financial Fraud Risk With Data Analytics, Clarence Goh, Gary Pan

Research Collection School Of Accountancy

The risks associated with financial fraud that modern CFOs face today is particularly high. The same report examined Accounting and Auditing Enforcement Releases (AAERs) issued by the Securities and Exchange Commission (SEC) in the US from 2014 to 2019 and found that while the SEC frequently charged the person directly responsible for perpetuating the financial fraud, the CFO was among the most commonly charged employees. Data analytics techniques can play an important role in mitigating the risk of financial fraud for CFOs.

Applying Visual Analytics To Fraud Detection Using Benford's Law, Clarence Goh

Research Collection School Of Accountancy

Benford's law has been examined as a useful tool for detecting potential accounting fraud. In this article, I provide an introduction to Benford's law and examine how the first digit, second digit, and first-two digits tests in Benford's law can be employed to detect potential accounting fraud. In addition, I also highlight, through a worked example, how Tableau, a visual analytics tool, can be used to perform Benford's law's first-digit test to detect potential fraud.

Chief Financial Officer Demographic Characteristics And Fraudulent Financial Reporting In China, Jinghui Sun, Pamela Kent, Baolei Qi, Jiwei Wang

Research Collection School Of Accountancy

We investigate whether management's cognitions, values and perceptions are associated with fraud for 18 863 firm-years for Chinese listed firms from 2000 to 2014. Demographic characteristics of the chief financial officer (CFO) are used as proxies for management's cognitions, values and perceptions. We find that fraudulent financial reporting is higher when CFOs are younger, male, and have lower education backgrounds. An analysis of inflated earnings, fictitious assets, material omissions and other material misstatements provide similar results, with the exception that CFOs with higher education levels are associated with more inflated earnings. Accounting and Finance

Data Mining Journal Entries For Fraud Detection: A Replication Of Debreceny And Gray's (2010) Techniques, Poh Sun Seow, Pan, Gary, Themin Suwardy

Research Collection School Of Accountancy

The alarming frequency of fraud occurrences suggests that corporations continue to face persistent threat of fraud (Cecchini et al., 2010a; Summers and Sweeney, 1998). According to Association of Certified Fraud Examiner (ACFE)’s 2014 Report, a typical organization may lose five percent of its revenue to fraud every year. As such, the consequences of fraud may impact the shareholders, creditors, auditors and the public’s confidence in the integrity of corporations’ financial systems (Rezaee, 2005).

Kpmg Global Anti Bribery And Corruption: Rising To The Challenge In The Age Of Globalization, Themin Suwardy, Poh Sun Seow, Pan, Gary

Research Collection School Of Accountancy

Corruption continues to corrode the global economy, 18 years after member governments of the Organization for Economic Co-operation and Development (OECD) signed a convention1 that establishes legally binding standards to criminalize the bribery of public officials. Since then, a growing number of governments have passed anti-bribery and corruption (ABC) laws. The U.S. is no longer the lone policeman on the beat; the UK and other European governments have implemented anti-corruption regulations too, as have emerging economies including China and Brazil.

Despite tougher enforcement of regulations to combat bribery and corruption, illicit payments to counter-parties continue to burden economies, diverting resources …

Fraud: A Review And Research Agenda, Pan, Gary, Poh Sun Seow, Themin Suwardy, Hui Ting Evelyn Gay

Research Collection School Of Accountancy

Corporate scandals such as Enron, Tyco, WorldCom and Adelphia have drawn significant attention to the occurrence of fraud. This has implications for public interest as the prevalence and consequences of fraud may affect the shareholders, creditors and the public’s confidence in the financial system. Much research has been published on various aspect of fraud. In this paper, we selected fraud articles published in accounting and management journals between 1996 and 2010 based on selected search phrases. We identified a total of 56 articles and perform content analysis on the fraud phenomenon in the articles, classified them into a number of …