Rationalization of financial statement fraud in government: An Austrian perspective

Critical Perspectives on Accounting

Volumn 18, Issue 4, 2007, Pages 489-507

  Stalebrink, Odd J ^a   Sacco, John F ^b  

^a WEST VIRGINIA UNIVERSITY   (United States)

^b GEORGE MASON UNIVERSITY   (United States)

Author keywords

Accounting fraud; Austrian; Entrepreneurship; Governmental accounting; Information asymmetry; Markets; Regulations

Indexed keywords

EID: 33947198890     PISSN: 10452354     EISSN: 10959955     Source Type: Journal    
DOI: 10.1016/j.cpa.2006.01.009     Document Type: Article

References (68)

1. AICPA Auditing Standards Board, Consideration of fraud in a financial statement audit, American Institute of Certified Public Accountants (AICPA), SAS No. 99 (2002).
2. Akerlof G. The market of lemons: qualitative uncertainty and the market mechanism. Quarterly Journal of Economics 84 (1970) 488-500
3. Anthony R.N. Games government accountants play. Harvard Business Review (1985) 161-170
4. Baber W. Toward understanding the role of auditing in the public sector. Journal of Accounting and Economics 5 (1983) 213-227
5. Bac A.D. International issues in government accounting (2001), Kluwer Academic, Boston/Dordrecht/London
6. Bac A.D. Dutch private sector and local government accounting regulations: a comparison. Journal of Public Budgeting, Accounting & Financial Management 15 4 (2002) 595-618
7. Bierman H. Measurement and accounting. The Accounting Review XXXVIII 3 (1963) 501-507
8. Boettke PJ, Coyne CJ, Leeson PT. Man as machine: the plight of 20th century economics, working paper, George Mason University, VA: Department of Economics, 2003.
9. Bourmistrov A, Mellemvik F. International trends and experiences in government accounting. Cappelen Akademisk Forlag, 2005.
10. Bowen R., Noreen E., and Lacey M. Determinants of the corporate decision to capitalize interest. Journal of Accounting and Economics (1981) 151-179
11. Brecher C., Richwerger K., and Van Wagner M. An approach to measuring the affordability of state debt. Public Budgeting and Finance 23 4 (2003) 65-85
12. Brorstrom B. Accrual accounting, politics and politicians. Financial Accountability & Management 14 4 (1998) 319-333
13. Caperchione E., and Mussari R. Comparative issues in local government accounting (2000), Kluwer Academic, Boston/Dordrecht/London
14. Carlin T. Debating the impact of accrual accounting and reporting in the public sector. Financial Accountability & Management 21 3 (2005) 309-332
15. Chan J., Jones R., and Lüder K. Research in governmental and nonprofit accounting vol. 9 (1996), JAI Press
16. Christiaens J. Symposium on local government accounting reforms in Europe: introduction. Journal of Public Budgeting, Accounting & Financial Management 14 4 (2002) 560-564
17. Clarke F., Dean G., and Oliver K. Corporate collapse: accounting, regulatory and ethical failure (2003), Cambridge University Press, Cambridge, UK
18. Copley P., Cheng R., Harris J., Icerman R., Johnson W., Smith R., et al. The new governmental reporting model: is it a field of dreams?. Accounting Horizons 11 3 (1997) 91-101
19. Daniels J.D., and Daniels J.D. Municipal financial reports: what users want. Journal of Accounting and Public Policy 10 (1991) 15-38
20. Ellwood C. The financial reporting (r)evolution in the UK public sector. Journal of Public Budgeting, Accounting & Financial Management 14 4 (2002) 565-594
21. Gaffney M.A. Consolidated versus of fund-type accounting statements: the perspectives of constituents. Journal of Accounting and Public Policy 5 (1986) 167-189
22. Gelinas N. A permanent pension-fund fix for San Diego (2005), San Diego Tribune, San Diego
23. Goddard A. Accounting and NPM in UK local government-contributions towards governance and accountability. Financial Accountability & Management 21 2 (2000) 191-218
24. Gosling J.J. Budgetary politics american governments (1992), Longman, New York
25. Governmental Accounting Standards Board (GASB), Concept statement no. 1 of the governmental accounting standards board, Stamford, CT: GASB, 1987.
26. Governmental Accounting Standards Board (GASB), Basic financial statements - and management's discussion and analysis - for state and local governments, Norwalk, CT: GASB, 1999.
27. Hagerman R., and Zmijewski M. Some economic determinants of accounting policy choice. Journal of Accounting and Economics 1 (1979) 141-161
28. Hayek F.A. The nature and history of the problem. In: Hayek F.A. (Ed). Collectivist economic planning (1935), George Routledge and Kegan Paul, Ltd., London 1-40
29. Hayek F.A. Competition as a discovery procedure. In: Hayek F.A. (Ed). New studies in philosophy, politics, economics and the history of ideas (1979), The University of Chicago Press, Chicago 179-190
30. Hayes V.R. The dangers of relying on a legal list: a case study of the West Virginia Consolidated Investment Fund. Public Budgeting and Finance 19 4 (1999) 49-64
31. Heald D. The implementation of resource accounting in UK central government. Financial Accountability & Management 21 2 (2000) 163-190
32. Herzlinger R.E., and Sherman D.H. Advantages of fund accounting in nonprofits. Harvard Business Review May-June (1980) 94-104
33. Hickman W.B. Corporate bond quality and investor experience (1958), National Bureau of Economic Research, New York
34. Holthausen R., and Leftwich R. The economic consequences of accounting choice: implications of costly contracting and monitoring. Journal of Accounting and Economics 5 (1983) 77-117
35. Inanga E., and Schneider B. The failure of accounting research to improve accounting practice: a problem of theory and lack of communication. Critical Perspectives on Accounting 16 (2005) 227-248
36. Jacobs K. Hybridisation or polarisation: doctors and accounting in the UK, Germany and Italy. Financial Accountability & Management 21 2 (2000) 135-162
37. Kahan S. Minding the store. The Practical Accountant 35 10 (2002) 42-43
38. Kaplan R., and Urwitz G. Statistical models of bond ratings: a methodological inquiry. Journal of Business 52 2 (1979) 231-261
39. Kettl D.F. The global revolution in public management: driving themes, missing links. Journal of Policy Analysis and Management 16 3 (1997) 446-462
40. Kirzner I.M. Competition and entrepreneurship (1973), The University of Chicago Press, Chicago
41. Lachmann L. The legacy of Max Weber (1971), The Glendessary Press, Berkeley
42. Loviscek A., and Crowley F. What is in a municipal bond rating?. The Financial Review 25 1 (1990) 25-53
43. Lüder K., and Jones D. Reforming governmental accounting and budgeting in Europe 2003 (2003), Fachverlag Moderne Wirtschaft, Frankfurt
44. Menger C. Principles of economics (1981), New York University Press, New York (Originally published in 1871.)
45. Montesinos V., and Vela J.M. Innovations in governmental accounting (2002), Kluwer Academic, Boston/Dordrecht/London
46. Mulford C.W., and Comiskey E.E. The financial numbers game: detecting creative accounting practices (2002), Wiley
47. Mulgan R. Public sector reform in New Zealand - issues of public accountability. Technical report discussion paper no. PDP04-03, Policy and Governance Program, APSEG, ANU. 2004.
48. Pina V., and Torres L. Accounting developments of Spanish local governments: an international comparison. Journal of Public Budgeting, Accounting & Financial Management 14 4 (2002)
49. Powell M. Avoiding investment pool disaster: the best structure for local government is the appointed manager. American City & County May (1995) 110
50. Reinstein A., and McMillan J. The Enron Debacle: more than a perfect storm. Critical Perspectives on Accounting 15 (2004) 955-970
51. Rezaee Z. Financial statement fraud: prevention and detection (2002), John Wiley & Sons, New York
52. Rothbard M.N. The logic of action one: method, money and the Austrian school (1997), Edward Elgar, Cheltenham, UK
53. Samuels W.J. Determinate solutions and valuational process. Journal of Post Keynesian Economics 11 4 (1989) 531-546
54. Schick A. The spirit of reform: managing the New Zealand state sector in a time of change. A report prepared for the State Services Commission and the Treasury, New Zealand; 1996.
55. Stalebrink O.J., and Sacco J. An Austrian perspective on commercial accounting practices in public sector. Accounting Forum 23 3 (2003) 339-358
56. Stalebrink OJ, Sacco J. Public sector investment failures: theoretical contributions from new institutional and Austrian economic theory. Public Budgeting, Accounting and Financial Management [forthcoming].
57. Stanton P., and Stanton J. The questionable economics of governmental accounting. Accounting, Auditing and Accountability Journal 11 2 (1998) 191-203
58. Strong J., and Meyer J. Asset write-downs: managerial incentives and security returns. Journal of Finance (1987) 643-661
59. Thornhill W.T., and Wells J.T. Fraud terminology reference guide (1993), Association of Certified Fraud Examiners (ACFE), Austin, TX
60. Tiebout C. A pure theory of local expenditures. Journal of Political Economy LXIV (1956) 416-424
61. United States General Accounting Office, Budget issues: state balanced budget practices, Washington, DC: U.S. Government Printing Office, 1985.
62. United States General Accounting Office, Balanced budget requirements: state experiences and implications for the federal government, Washington, DC: U.S. Government Printing Office, 1993.
63. Welch S., Holmes S., and Strawer J. Fraud in the federal government. Part 1. Perpetrators and the victims. Government Accountants Journal 46 1 (1997) 24-27
64. Welch S., Holmes S., and Strawer J. Fraud in the federal government. Part II. The detection and resolution of the cases. Government Accountants Journal 46 2 (1997) 24-27
65. Williamson O.E. The new institutional economics: taking stock, looking ahead. Journal of Economic Literature 38 3 (2000) 595-613
66. Wilson E., and Howard T. The association between municipal market measures and selected financial reporting practices. Journal of Accounting Research 22 1 (1984) 207-224
67. WorldCom I. Annual report pursuant to section 13 or 15(d) of the securities and exchange act of 1934 20549 (2004 (March 12)), Securities and Exchange Commission, Washington, DC
68. Ziegenfuss D.E. The role of control environment in reducing local government fraud. Journal of Public Budgeting, Accounting & Financial Management 13 3 (2001) 312-324