Proposed Framework to examine fraud and prevent it and strengthen confidence in the financial statements
“Applied research in a sample off Iraqi companies listed shareholding in the Iraq
Stock Exchange “
Thesis
Submitted to the Council of the College of Administration & Economics
/ University of Karbala as a Partial Fulfillment of the Requirements of
the M.Sc. Degree in Accounting Sciences
by
Ibrahim Naeem Hassan Al-aidi
Under supervision of
Prof. Dr. Talal Mohammed Ali Al-Jajawy
Abstract
Thank God for the beautiful kindness, research has shown that fraud and
economic and financial social problem take the form of a paralegal based on the
intention to deceive third parties to the goals of personal expediency of the problem
and increased common with the spread of technological development and
globalization of the financial and administrative work and provided the information
for the majority of the public but that the majority of incorrect information but It
has been exploited spread misleading and this led to a loss of confidence in the
financial statements because they lacked the key characteristics of an appropriate
representation and sincere.
It is that problem has been reached and based on the recommendations of
the professional bodies and international accounting standards and sound
foundations and professional ethics and religious to the formation of a proposal to
limit fraud as part of the purpose of examination and is no doubt that it contributes
and effectively in the promotion of confidence to the financial statements, for that
was selected sample of Iraqi companies for the application of the proposed
framework, where results showed there is a flaw in the presentation of financial
statements of the research sample, thus weakening confidence in their data through
misinformation in those financial statements, and it turns out that the percentage
(65%) in place of the special examines fraud and reduce the company Baghdad for
soft drinks and the proposed framework measures what proportion (50%) in place
of the actions of the Bank of Baghdad, and therefore, there is a big gap as possible
to pass the fraud through them, and that the proportion of fraud in the financial
statements by applying Eckle coefficient company soft drinks (0.33874) offset by a
significant increase of the coefficient of Tobin’s Q, which shows the performance
level. high and this is no doubt an increase in the level of confidence and a (1.909),
while the decline in laboratories in the Bank of Baghdad (1.0863), a ratio as high as
offset by a decrease in the level of performance which gives the image of weak
confidence in the financial statements and therefore, the proposed framework will
contribute effectively to the reduction of fraud which enhances confidence to the
financial statements, the researcher recommends the need to ensure the preparation
of financial statements that are objectively more you review the figures contained
in that data shows a significant contradiction and get away from deception in its
financial statements no secret pave income in those data, and that the Bank of
Baghdad to follow steps examination fraud and reduce it contained the proposed
framework would contribute to strengthening the reliability of its financial
statements.