Red flagging as an indicator of financial statement fraud : the perspective of investors and lenders

dc.contributor.authorKoornhof, Carolina, 1959-
dc.contributor.authorDu Plessis, Danie E.
dc.contributor.emaildanie.duplessis@up.ac.zaen
dc.date.accessioned2007-06-20T09:17:45Z
dc.date.available2007-06-20T09:17:45Z
dc.date.issued2000
dc.description.abstractThere is increasing international concern about the escalation of fraud and, in particular, financial statement fraud. Detecting financial statement fraud and proving such fraud remains an elusive goal. Red flagging is an early warning system that has been used by auditors to determine the probability of financial statement fraud. The purpose of this research project was to survey investors and lenders in South Africa on their use of red flags and to obtain their opinions on the relative importance of individual red flags. A questionnaire was sent to banks that are registered with the Registrar of Banks (representative of lenders) and to portfolio managers registered with the Financial Services Board (representative of investors). The research findings indicate that lenders and investors in South Africa appear to be aware of the benefits of red flagging as an early warning system. A structured approach (questionnaires / checklists) in using them is to be lacking at present. Respondents rated all red flags in the questionnaire as being important. No distinction was discernable among the different categories that were based on the nature of red flags.en
dc.format.extent221882 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.citationKoornhof, C & Du Plessis, DE 2000, 'Red flagging as an indicator of financial statement fraud : the perspective of investors and lenders', Meditari : Research Journal of the School of Accounting Sciences, vol. 8, pp. 69-93. [http://www.meditari.org.za]en
dc.identifier.issn1022-2529
dc.identifier.urihttp://hdl.handle.net/2263/2782
dc.language.isoenen
dc.publisherSchool of Accounting Sciences, UPen
dc.rightsSchool of Accounting Sciences, UPen
dc.subjectCreative accountingen
dc.subjectRed flagsen
dc.subjectGenerally Accepted Accounting Practice (GAAP)en
dc.subjectFinancial statement frauden
dc.subject.lcshFinancial statements
dc.subject.lcshFraud
dc.titleRed flagging as an indicator of financial statement fraud : the perspective of investors and lendersen
dc.typeArticleen

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