The Sec Initiative On Accounting Fraud Detection And Misleading Disclosure By Implementing The Accounting Quality Model

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Boyle, D., Boyle, J and Carpenter (2014) research titled “The SEC’s Renewed Focus on Accounting Fraud” about the SEC initiative on accounting fraud detection and misleading disclosure by implementing the Accounting Quality Model (AQM) using the Extensible Business Reporting Language (XBRL) (p.68). Boyle et al. mentioned Craig M Lewis, director and chief economist of the SECs Division of Economic and Risk Analysis, described AQM as a highly technical robust tool on detecting fraud and other accounting anomalies, while others called it “Robocop” as the use of XBRL tags is capable of computerized analysis and enhanced access to financial data by the stakeholders, the public and the SEC staff (pp.68-69). Boyle et al. cited that Robocop is a computerized system which takes the firm’s same day financial filings, processed it and keeps it in the database and enable open access of the financial data within 24 hours after being posted on the Electronic Data-Gathering, Analysis, and Retrieval (EDGAR) System. Boyle et al. summarized that accounting fraud and improper disclosures are evident in SEC’s renewed focus on its resources through the technology-based tool AQM as key component, while the SEC Financial Reporting and Audit Task Force initiatives focus on exploring and identifying areas vulnerable to fraudulent activities by increased emphasis on financial reporting fraud detection and disclosure irregularities (p.69). Boyle et al. mentioned David Woodcock, chair of the SEC Task

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