Using an experiment with corporate financial managers, we find that when red flags are present in the financial statements under their review, managers identify those red flags and, in turn, have greater concerns over earnings quality. In addition, when pressure to meet a financial target is high, managers are more concerned about earnings quality when red flags are present. We also document that when red flags are present, managers are more likely to report both internally to their CEO and, if (...) their concerns are not resolved internally, externally to their auditor. Pressure to meet a financial target increases the likelihood managers report internally, but decreases their likelihood of reporting externally when red flags are present. Additional analyses document reporting differences between CFOs and controllers, and examine the important roles that short-term personal costs, job tenure, and a non-accounting background play in the ethical dilemma managers face when deciding whether to report externally. (shrink)

The Sharī‘ah ‘Committee is a board which is independent in directing, reviewing and supervising an Islamic Financial Institution. It consists of those who are specialised in Fiqh Mu‛āmalāt or those who know it with expertise in other fields. In conjunction with IFIs emergence, the Accounting and Auditing Organization for Islamic Financial Institutions was established and has issued numerous standards on accounting, auditing and also governance for IFIs. The researchers intend to review the duties and decision-making guidelines of the Sharī‘ah Committee (...) prescribed by the AAOIFI in 2010. The review undergoes a thorough search and critical analysis of any related content about the topic throughout the whole standard. Some important results are: AAOIFI mentions directly the duties of the Sharī‘ah Committee along with the definition of this Sharī‘ah Committee. These duties are directing, reviewing and supervising. On the other hand, decision-making guidelines are indicated indirectly and they are scattered throughout the AAOIFI governance standards. (shrink)

The article attempts to present a thorough analysis of intelectual property, as main property of a modern company, from the perspective of private law. The article anlyzes the essence of the intangible resources that form the intellectual capital and discusses whether the modern institutes of law allow the universal protection of companies‘ intellectual capital. The first part of the article analizes the conception of intangible resources and provides their qlassification. The second part of the article discusses the understanding of intellectual (...) capital and importance thereof to modern companies. In the third part of the article, the possibility to financially account all intellectual property of a company is analyzed. The forth and fifth parts of the article reveal the possibilities of legal protection of intellectual capital. The law on intelectual property is not sufficient to protect all intelectual capital because it protects only that part of intangibles, which become the onjects of the intelectual property. (shrink)