Auditing Techniques to Avoid Cost Accounting Frauds

Authors

  • Vedat Akman Beykent University
  • Berkan Acar Yalova University
  • Cevdet Kızıl Istanbul Medeniyet University

DOI:

https://doi.org/10.5195/emaj.2020.210

Keywords:

Accounting, Cost Accounting, Auditing, Scandals, Fraud

Abstract

Today, we observe the importance of accuracy of financial statements in every corporation. Accounting scandals have caused important losses both in the macro and micro levels. This issue proves the significance of financial statement accuracy. This accuracy is provided by the trust environment. Therefore, it is necessary to provide the required environment of confidence for financial markets to improve and function effectively against increasing accounting frauds gradually. That can only be possible by using different auditing techniques, running inventory counting such as cash and stock, establishing strong internal controls, managing efficiently and benefiting from technology integrated auditing. The aim of this study is to investigate the most effective auditing techniques to avoid cost accounting frauds. In this research, the most effective auditing techniques for detecting and preventing fraud are investigated by using the case analysis method. Also, the well known scandals related with Olympus, Worldcom, Tesco, Sunbeam and Parmalat companies are examined as a part of the case analysis. Finally, recommendations and suggestions regarding fraud prevention methods are presented.

References

Adalı, S., Kızıl, C. (2017). "A Research on the Responbility of Accounting Professionals to Determine and Prevent Accounting Errors and Frauds: Edirne Sample", Emerging Markets Journal (EMAJ), University of Pittsburgh Press (USA), Vol. 7, No: 1, ISSN: 2158-8708 (online), http://dx.doi.org/10.5195/emaj.2017.129 ,53-64.

Akdoğan, N. (2014). Maliyet Muhasebesi, Anadolu Üniversitesi, Eskişehir (Haziran 2014), 10-11.

Aslan, T., Kızıl, C. (2019). Üretim Maliyetlerinin Denetimine Genel Bir Bakış, İktisadi Yenilik Dergisi, Cilt: 6, Sayı: 1, Ocak 2019, 1-12. http://dergipark.gov.tr/download/article-file/616547

Aslan, T., Kızıl, C., Din, A. (2017). "Muhasebe Hata ve Hileleri Üzerinde Etkili Faktörlerin Muhasebe Meslek Etiği Kapsamında Analizi: Yalova Örneği", Journal of Social and Humanities Sciences Research (JSHSR), Cilt: 4, Sayı: 12, ISSN: 2459-1149, http://dx.doi.org/10.26450/jshsr.191, 1125-1138.

Ata, H. A., Uğurlu, M., Altun, M. Ö. (2009). Finansal Tablo Hilelerinin Önlenmesinde Denetçi Algılamaları, Gaziantep Üniversitesi Sosyal Bilimler Dergisi, No: 8, Sayı: 1, 215-230.

Chapman, B. (2020). Watchdog Closes Five-Year Probe into Tesco’s £250m Accounting Scandal, Independent, https://www.independent.co.uk/news/business/news/watchdog-closes-tesco-accounting-scandal-investigation-a9554296.html (Accessed: 22.05.2020).

Demir, M. (2014). Benford Yasası ve Hile Denetiminde Kullanılması, Yayınlanmamış Yüksek Lisans Tezi. İstanbul Ticaret Üniversitesi Sosyal Bilimler Enstitüsü, İstanbul.

Emir, M. (2008). Hile Denetimi, Mali Çözüm Dergisi, No: 86., Mart-Nisan 2008, 110.

Erol, M. (2008). İşletmelerde Yaşanan Yolsuzluklara (Hata ve Hileler) Karşı Denetimden Beklentiler, Süleyman Demirel Üniversitesi, İİBF Dergisi, Cilt: 13, Sayı: 1, 229-237.

Fido, E. M. (2016). Finansal Tablolarda Hile Denetimi ve Hileyi Önlemeye Yönelik Denetim Teknikleri: Türkiye ve AB Uygulamalarının Karşılaştırılması, Yüksek Lisans Tezi, Selçuk Üniversitesi Sosyal Bilimleri Enstitüsü, Konya.

Güredin, E. (1999). Denetim, Beta Basım Yayım Dağıtım A.Ş., İstanbul.

Hilzenrath, D. S. (2001). Sunbeam Accussed of Fraud, The Washington Post, https://www.washingtonpost.com/archive/business/2001/05/16/sunbeam-accused-of-fraud/4e03a2b8-c4da-4a00-bea8-f0cb55cb8d77/ (Accessed on: 24.05.2020).

Jucca, L., Stempel, J. (2007). UPDATE 3-Deloitte to Pay Parmalat $149 Mln to Settle Suit, The Reuters Web Site, https://www.reuters.com/article/parmalat-deloitte-agreement-idUSL124205520070112 (Accessed on: 25.05.2020).

Kandemir, C. (2010). Muhasebe Hilelerinin Ortaya Çıkarılmasında ve Önlenmesinde Bağımsız Denetimin Rolü ve Bağımsız Denetçinin Sorumluluğu, Doktora Tezi, Çukurova Üniversitesi Sosyal Bilimler Enstitüsü, Adana.

Kandemir, C., Kandemir, Ş. (2012). Muhasebe Hilelerini Önlemede Çözüm Yolu Olarak Kullanılacak Stratejilerin Bileşenleri, Mali Çözüm Dergisi, No: 111, Mayıs-Haziran 2012, 15-42.

Kandemir, C., Kandemir, Ş. (2012). ’Muhasebe Hilelerinin Önlenmesi ve Ortaya Çıkarılmasında Kullanılan Geleneksel Araç ve Yöntemler, Mali Çözüm Dergisi, No:113, Eylül-Ekim 2012, 39-74.

Kızıl, A., Kızıl C. (2007). Accounting: Financial, Cost, Managerial. Bahar Yayınevi, İstanbul, Türkiye, ISBN: 994463070-5.

Kızıl, C., Akman, V., Korkmaz, H. (2015). "Marmara Bölgesinde Muhasebe-Denetim Mesleğinin Önemi Üzerine Bir Araştırma", Akademik Sosyal Araştırmalar Dergisi (ASOS Journal), Yıl: 3, Sayı: 10, Mart 2015, 193-211.http://www.asosjournal.com/Makaleler/754101230_510%20Cevdet%20 KIZIL.pdf

Kızıl, C., Doğan, E. (2017). Audit Techniques for Protecting against Cyber Attacks: A Bilateral Approach of Case Studies and Interview in Societal Complexity, Data Mining and Gaming; State-of-the-Art 2017, Dorien DeTombe, Gerhard-Wilhelm Weber and Semih Kuter (Eds.), Amsterdam Europe: Greenhill & Waterfront. Versiyon: 001, Amsterdam, Hollanda, ISBN /EAN: 978-90-77171-54-7. 125-135.

Kızıl, C. et. al. (2019). İktisadi ve Sosyal Yönleriyle İnovasyon kitabı içerisinde Bölüm 5: İnovasyonun Muhasebe ve Denetime Etkileri kitap bölüm yazarlığı. Editörler: Birgül Uyan ve Musa Çakır, IKSAD Yayınevi (IKSAD Publications), Temmuz 2019, Ankara, Türkiye, ISBN: 978-605-7695-03-1. https://www.iksad.net/product-page/iktisadi-ve-sosyal-y%C3%B6nleriyle-inovasyon

Kızıl, C., Kaşbaşı, B. (2018). Accounting Scandals and Eye-Catching Frauds: USA-Japan Comparison by Considering the Role of Auditing, Journal of Asian Research (JAR), ISSN: 2575-1581 (online), Vol. 2, No: 3, ss.123-138, http://dx.doi.org/10.22158/jar.v2n3p123

Kostova, S. (2012). Audit Procedures for Disclosure of Errors and Fraud in Financial Statements of Bulgarian Companies, Faculty of Economic Accounting D.A. Tsenov Academy of Economics, Svishtov, Bulgaria (July), 49-66.

Norris, F. (2011). Deep Roots of Fraud at Olympus, The New York Times, https://www.nytimes.com/2011/12/09/business/deep-roots-of-fraud-at-olympus.html (Accessed: 20.05.2020).

Omair, B., Alturki, A. (2020). Systematic Literature Review of Fraud Detection Metrics in Business Processes, IEEE Access, DOI: 10.1109/ACCESS.2020.2971604 https://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=8981992

Oyinlola, A. O. Mr. (2010). The Role Of Auditors in Fraud Detection, Prevention and Reporting in Nigeria, Library Philosophy and Practice, 517.

Özay, T. (1992). Yönetimde Muhasebenin Yeri, Mali Çözüm Dergisi, No: 12, Şubat-Mart 1992.

Öztürk, V. (2016). Muhasebe, Ankara Kariyer Yayınları, 3. Baskı, Ankara.

Şakrak, M. (1997). Maliyet Yönetimi, Yasa Yayınları, İstanbul.

The Guardian. (2002). WorldCom Accounting Scandal. The Guardian Website. https://www.theguardian.com/business/2002/aug/09/corporatefraud.worldcom2 (Accessed: 21.05.2020).

Downloads

Published

2020-09-23

Issue

Vol. 10 No. 1 (2020)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. The Author retains copyright in the Work, where the term “Work” shall include all digital objects that may result in subsequent electronic publication or distribution.
  2. Upon acceptance of the Work, the author shall grant to the Publisher the right of first publication of the Work.
  3. The Author shall grant to the Publisher and its agents the nonexclusive perpetual right and license to publish, archive, and make accessible the Work in whole or in part in all forms of media now or hereafter known under a Creative Commons Attribution 4.0 International License or its equivalent, which, for the avoidance of doubt, allows others to copy, distribute, and transmit the Work under the following conditions:
    1. Attribution—other users must attribute the Work in the manner specified by the author as indicated on the journal Web site;
    with the understanding that the above condition can be waived with permission from the Author and that where the Work or any of its elements is in the public domain under applicable law, that status is in no way affected by the license.
  4. The Author is able to enter into separate, additional contractual arrangements for the nonexclusive distribution of the journal's published version of the Work (e.g., post it to an institutional repository or publish it in a book), as long as there is provided in the document an acknowledgement of its initial publication in this journal.
  5. Authors are permitted and encouraged to post online a prepublication manuscript (but not the Publisher’s final formatted PDF version of the Work) in institutional repositories or on their Websites prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. Any such posting made before acceptance and publication of the Work shall be updated upon publication to include a reference to the Publisher-assigned DOI (Digital Object Identifier) and a link to the online abstract for the final published Work in the Journal.
  6. Upon Publisher’s request, the Author agrees to furnish promptly to Publisher, at the Author’s own expense, written evidence of the permissions, licenses, and consents for use of third-party material included within the Work, except as determined by Publisher to be covered by the principles of Fair Use.
  7. The Author represents and warrants that:
    1. the Work is the Author’s original work;
    2. the Author has not transferred, and will not transfer, exclusive rights in the Work to any third party;
    3. the Work is not pending review or under consideration by another publisher;
    4. the Work has not previously been published;
    5. the Work contains no misrepresentation or infringement of the Work or property of other authors or third parties; and
    6. the Work contains no libel, invasion of privacy, or other unlawful matter.
  8. The Author agrees to indemnify and hold Publisher harmless from Author’s breach of the representations and warranties contained in Paragraph 6 above, as well as any claim or proceeding relating to Publisher’s use and publication of any content contained in the Work, including third-party content.

Revised 7/16/2018. Revision Description: Removed outdated link.