Detection of fraudulent actions in the financial statements with particular emphasis on hotel companies

Authors

  • Dragan Vasilev Service for Combating Organized Crime, SPBOK, Serbia
  • Dragan Cvetković Police Directorate for the City of Belgrade, Criminal Police Directorate Belgrade, Serbia
  • Aleksandar Grgur ATOK, Belgrade, Serbia

DOI:

https://doi.org/10.5937/menhottur1901115V

Keywords:

financial statements, fraudulent actions,, forensic accountants, forensic accountantstools, hotel companies

Abstract

Financial statements are one of the key sources of information for stakeholders of companies. Therefore, financial reporting aims at presenting an objective and transparent state of an enterprise. In order to protect the interests of all stakeholders of companies, whether external or internal, the role of financial accountants is very important, which is related to the detection of fraudulent activities in the financial statements. Forensic accountants with the knowledge they possess in the field of accounting, auditing, management and other skills, have the ability to clearly understand the irregularities and injustices that occur within the company. Fraudulent actions are most often a case of using an enterprise management strategy to gain benefits to the interests of other marketers that surround it. The aim of the paper is to show the significance of the role of a financial accountant in detecting fraudulent actions in the financial statements. The subject of this paper is to investigate the possibility of fraudulent actions and to look into the specific role forensic accountants have in this process.

References

AICPA-CPA Letter Supplements, M. 1. (n.d.). Retrieved January 11, 2019 from www.aicpa.org/pubs/cpaltr/may98/suppl/pubacc.html

Andri?, M., Krsmanovi?, B., & Jakši?, D. (2008). Revizija - Teorija i praksa [Auditing - Theory and Practice]. Subotica: Ekonomski fakultet.

Coenen, T. (2008). Essentials of Corporate Fraud. New York: John Wiley & Sons, Inc.

Dorris, B. (2018). Report to the nations, 2018 Global study on occupational fraud and abuse. New York, Association of Certified Fraud Examiners.

Golden, W. T., Skalak, L. S., & Clayton, M. M. (2006). A Guide to Forensic Accounting Investigation. New York: John Wiley & Sons.

Higgins, R. C. (2009). Analysis for Financial Management 9th Edition. New York: McGraw-Hill.

IAASB, I. A. (2016). Handbook od international quality control, auditing, review, other assurance and related services pronouncements. New York.

Kneževi?, S., Barjaktarevi?-Rako?evi?, S., & ?uri?, D. (2011). Implementation and Restraints of Ratio Analysis of Financial Reports in Financial Decision Making. Management, 61, 24-31.

Kneževi?, S., Mitrovi?, A., & Ili?, Z. (2016). Pogledi na izveštavanje o tokovima gotovine iz razli?itih perspektiva [Different perspectives on the cash flow statement]. Menadžment u hotelijerstvu i turizmu – Hotel and Tourism Management, 4(2), 48-54.

Koletnik, F., & Kolar, I. (2008). Forenzi?no ra?unovodstvo [Forensic accounting]. Udruženje ra?unovo?a, forenzi?ar? i revizora Slovenije, Ljubljana [Slovenian association of accountants, forensics and auditors].

Martin, G. J. (2004). Hospitality management accounting. 8th edition. New Jersey: John Wiley & Sons.

Md Shamimul, H., Normah, O., Barnes, P., & Morrison, H.-S. (2017). A cross-country study on manipulations in financial statements of listed companies: Evidence from Asia. Journal of Financial Crime, 24(4), 656-677.

https://doi.org/10.1108/JFC-07-2016-0047

Ministarstvo finansija Republike Srbije. (2013). Ministarstvo finansija Republike Srbije - Uprava za spre?avanje pranja novca [Ministry of Finance of the Republic of Serbia - Administration for the prevention of money laundering]. Retrieved January 11, 2019 from

http://www.apml.gov.rs/REPOSITORY/977_tipologije-pranja-novca-u-republici-srbiji-13-09-2011.pdf

Muminovi?, S. (2011). Forenzi?ko ra?unovodstvo - potreba ili pomodarstvo [Forensic accounting - need or newfangled]. Revizor, 14(54), 18-19.

Reilly, K., & Swisher , T. (2015). The Five letter F Word : Fraud in the Hospitality Industry. HFTP Annual Convention. Seattle Washington: PBMares.

Riley, R., & Razaee, Z. (2008). Financial Statement Fraud: Prevention and Detection. 2nd Edition. New York: John Wiley & Sons, Inc.

Ross, J. F. (2016). The Information Content of Accounting Reports: An Information Theory Perspective. Information, 7(3), 1-23. https://doi.org/10.3390/info7030048

Singleton, T., & Singleton, A. (2010). Revizija kriminalne radnje i forenzi?ko ra?unovodstvo [Revision of criminal acitivity and forensic accouning]. Savez Ra?unovo?a i Revizora Srbije [Serbian association of accountants and auditors], Beograd.

Zakon o ra?unovodstvu Republike Srbije. (2013). Sl.glasnik (62/2013) [Accounting Act, Official Gazette of RS no. 62/2013].

Downloads

Published

2019-06-25

How to Cite

Vasilev, D. ., Cvetković, D. ., & Grgur, A. . (2019). Detection of fraudulent actions in the financial statements with particular emphasis on hotel companies. Hotel and Tourism Management, 7(1), 115–125. https://doi.org/10.5937/menhottur1901115V