Sections
An Introduction
Definition
What is Reporting Veracity?
Discovering the risk of inauthentic financial reporting.
What is Pressure Risk?
When an organization experiences circumstances where there is a temptation to commit fraud, but it has not yet acted upon it.
What are Asset Revenue Overstatements?
Overstating assets and revenues falsely reflects a financially stronger company by inclusion of fictitious asset costs or artificial revenues. The method results in increased equity, net worth, and earnings per share for the company [1] (pp. 1.307-1.308).
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* For other related definitions, we have created a Glossary for you with key terms defined.
[1] Association of Certified Fraud Examiners. (2005). Fraud Examiners Manual (Volume 1, US Edition).
Signalling for Financial Misstatements Risk, Introduction to Šóta Signal Analytics (March 2023)
Inside This Edition
Issue Date
Length
Inside This Edition
- Reporting veracity is critical to understanding risk
- Early warning system for financial misstatements risk
- The importance U.S. regulators have placed upon gatekeepers and understanding pressure risk
- Pressure risk is a leading indicator of asset revenue overstatements (ARO)
- Example: Trend analysis of pressure risk for iZea Worldwide Inc. (NASDAQ: IZEA)
- Taxonomy of financial statement fraud schemes
- Example: Trend analysis of ARO risk for iZea Worldwide Inc. (NASDAQ: IZEA)
- Origins of the name: Šóta Signal Analytics
- Šóta Signal Analytics founders
- Recommendations
- Letter of appreciation: United States, Department of the Treasury, Office of the Comptroller of the Currency (OCC)
Issue Date
- March 2023
Length
- 18 pages
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Contact
risk@sotascores.com
Tampa, Florida, United States
About
Šóta Signal Analytics is a software-as-a-service that produces Šóta Scores on a given organization, providing an early warning for the risk of material misstatements due to possible fraud (intentional) or mismanagement (typically unintentional). Šóta's market category is reporting veracity, which means discovering the risk of inauthentic financial reporting.
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