Document Type

Article

Publication Date

1-2009

Keywords

accounting fraud, subsidiaries, auditing

Abstract

This research explores accounting fraud in the subsidiary environment. Utilizing institutional theory, we propose that the subsidiary environment provides an opportune setting and vehicle for individuals to commit accounting fraud. While a growing body of literature exists on accounting fraud, minimal work has focused on the role of the subsidiary in accounting fraud, as reported by the Securities and Exchange Commission (SEC). We sample companies for which the SEC has documented accounting fraud in their enforcement releases. We then analyze the related SEC documents to determine to what extent, if any, a subsidiary is involved in the accounting fraud. Our preliminary results provide evidence related to the industries, circumstances and types of accounting fraud that take place in a subsidiary environment. These findings provide auditors, regulators, and designers of management control systems with additional insights as to the factors surrounding fraud when companies operate in a subsidiary environment.

Journal Title

Journal of Business & Economics Research

Volume

7

Issue

1

First Page

13

Last Page

22

DOI

https://doi.org/10.19030/jber.v7i1.2244

First Department

School of Business Administration

Acknowledgements

Retrieved November 3, 2020 from https://clutejournals.com/index.php/JBER/article/view/2244

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Accounting Commons

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