دانلود رایگان مقاله لاتین مشکل سوگیری مدیریت در برآورد حسابداری از سایت الزویر
عنوان فارسی مقاله:
مشکل سوگیری مدیریت در برآوردهای حسابداری: چشم انداز سرمایه گذار دردلایل ریشه ای و راه حل
عنوان انگلیسی مقاله:
The problem of management bias in accounting estimates: An investor perspective on root causes and solutions
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مقدمه انگلیسی مقاله:
1. Introduction
Estimates by management are ubiquitous in accounting. They are in the economic lives of buildings and machinery, the loan loss allowances of banks on the debts of the Greek government, and practically everything else in between. It would not be an understatement to claim that the quality of modern financial reporting rises and falls with the collective integrity of management’s estimates. Regarding the audits of estimates, the reality is that putatively ‘independent’ financial statement auditors effectively serve at the behest of management. Yet, the standards of the Public Company Accounting Oversight Board (PCAOB) implicitly, yet unmistakably, presume that auditors possess the technical capabilities and ethical resolve to eliminate the material effects of any management bias by constraining point estimates to a ‘reasonable’ range. Recently, however, that presumption has been called into question by the inspection results of the PCAOB and its global counterparts,from which we can confidently infer that auditors far too often fail to exercise sufficient skepticism of management’s estimates. Thus, it would seem unlikely for anyone to deny that management bias pervaded the financial statements of key financial institutions leading up to the Financial Crisis of 2008, yet views differ on the role of financial reporting in the crisis and how accounting regulators should react. For example, in the recently published memoir of his time as chair of the Financial Accounting Standards Board (FASB), Robert Herz (2014, p. 145) recounts how he repeatedly claimed that financial reporting did not cause the financial crisis, yet ‘‘it did reveal a number of areas requiring improvements in standards and overall transparency.’’ But given the many ways that financial reporting has been implicated in the financial crisis, there can be little doubt that it must have played a significant role, even if it did not actually cause the financial crisis. Issuers use financial statements as a basis for governance of all manner of corporations, creating incentives for managers to manipulate reported fi- nancialresults by any number of means. They also use financial statements to make capital allocation decisions. And perhaps most importantly in the context of an economic crisis, financial regulators rely on financialstatementsto measure the capital adequacy of financial institutions subject to their oversight. The New York Times economic policy columnist and Nobel laureate Paul Krugman (2009) rarely comments on financial reporting matters. But in one piece, he succinctly delivered a much harsher judgment: So here’s what Mr. Summers [Secretary of the Treasury]–—and, to be fair, just about everyone in a policy-making position at the time–— believed in 1999: America has honest corporate accounting; this lets investors make good decisions, and also forces management to behave responsibly; and the result is a stable, wellfunctioning financial system. What percentage of all this turned out to be true? Zero [emphasis added]. Perhaps due to such differing views, most would agree that fundamentally very little has changed about financial reporting since 2008 to make a noticeable difference. As evidence, there have been numerous recent developments to indicate that fi- nancial reporting remains inadequate to meet the needs of the public interest in a transparent, effi- cient, and stable economy. Consider the following: With respect to accounting standards, qualitycritical agenda items are proceeding at a snail’s pace. These include valuations of debt, loans, and other financial instruments; classification of a financial instrument as liability or equity; leases; and the general incomprehensibility and incompleteness of financial statement disclosures. And, it is not even clear that successful completion of the current docket will result in actual quality enhancements. For example, the FASB and International Accounting Standards Board’s (IASB’s) joint revenue recognition project is already 12 years in the making, and may be further amended before it is finalized–—which could take another 3 years. Although a ‘final’ converged standard has been issued, the costs of implementation in the U.S. will be high, there will be greater reliance on management’s estimates, the informational benefits are purely speculative and highly debatable, and it does nothing to address the accounting deficiencies most closely associated with the financial crisis. In October 2010, the European Commission (2010) issued a report titled Audit Policy: Lessons from the Crisis, the first paragraph of which states: ‘‘The fact that numerous banks revealed huge losses from 2007 to 2009 on the positions they had held both on and off balance sheet raises. . .the question of how auditors could give clean audit reports to their clients for those periods’’ [italics added]. Yet again, it is far from clear that any of the proposals from the FASB (or IASB) are sufficiently broad in their scope, or whether the proposed new measurement guidance based on a new battery of management estimates would be an improvement. In April 2014, the International Forum of Independent Audit Regulators(2014) published the results of its survey of inspections taking place the prior year, in 2013, of the audits of the six largest firms worldwide. It expressed grave concern for the numerous deficiencies involving the examination of estimates in general, and fair value measurements in particular. In an inspection report dated October 21, 2014, the PCAOB (2014a) disclosed that of 23 audits inspected for a major international auditing firm, 65% were completed without obtaining sufficient information to support its opinion. The IFIAR report referenced previously also states that it expects the firms to provide information aboutthe results ofroot cause analysis ofthe factors that underlie the inspection findings and to take appropriate remedial actions. Yet, only one of the BUSHOR-1227; No. of Pages 8 2 T.I. Selling, B. Nordlund firms studied would respond to a request for comment from Reuters. A spokesperson for the Center for Audit Quality, an organization promoting auditors that is affiliated with the American Institute of Certified Public Accountants (AICPA), stated that her group’s members recognize there is still ‘‘work to do’’ (Lynch, 2014). For its part, the PCAOB has recently undertaken a number of initiatives to determine how it should respond to the IFIAR report and its own inspection findings. After publishing a consultation paper seeking public comment on ‘‘auditing accounting estimates and fair value measurements’’ (PCAOB, 2014b), it convened a special meeting of its Standing Advisory Group (SAG) for a series of panel discussions on the issues. One of the authors of this article (Selling) was invited to be on the panel discussing investors’ perspectives. This article is based in part on his opening presentation and the discussion that followed.
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کلمات کلیدی:
[PDF]CHALLENGES in AUDiTinG FAiR VALUE ACCOUnTinG ESTiMATES ... www.ifac.org/system/files/downloads/Staff_Audit_Practice_Alert.pdf by RT STAFFAUDITPRACTICEALE It also refers to related issues concerning ... accounting estimates and fair value measurements ..... indicators of possible management bias; if this is the case,. [PDF]Auditing Accounting Estimates, Including Fair Value ... - AICPA https://www.aicpa.org/Research/Standards/AuditAttest/.../AU-C-00540.pdf individual accounting estimates and indicators of possible management bias. ... including many fair value accounting estimates, the measurement objective. [PDF]ISA 540 - Financial Reporting Council https://frc.org.uk/Our-Work/.../ISA-540-Auditing,-accounting-estimates,-including.pd... Evaluating the Reasonableness of the Accounting Estimates, and. Determining .... accounting estimates, and indicators of possible management bias. Nature of ... I'm not biased, am I? - Journal of Accountancy www.journalofaccountancy.com/issues/2015/feb/auditing-judgment-bias.html Feb 1, 2015 - Avoid 5 common judgment biases that can affect accounting and auditing decisions. ... estimates are imprecise and can be influenced by management judgment. ... The problem arises when individuals rely on these shortcuts ... Searches related to The problem of management bias in accounting estimates management bias definition isa 540
