International Journal of Research in Finance and Management
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E-ISSN: 2617-5762|P-ISSN: 2617-5754

International Journal of Research in Finance and Management

2022, Vol. 5, Issue 2
Factors affecting the quality of accounting information on financial statements: Evidence from Vietnamese enterprises

Vu Thi Phuong Lien, Nguyen Vu Viet and Do Thi Thoa

Accounting information on financial statements is not only an essential source of information for managers in operating businesses but also provides valuable information for those interested in the "health" of the business, thereby making appropriate decisions. It directly affects the quality and efficiency of information users as well as the performance of the economy. However, accounting information fraud at businesses is still frequent and increasingly sophisticated and causes severe consequences and significant damage to companies and investors. It is fraud in the financial statements of the world's leading energy groups: Enron, WorldCom, Tyco, Xerox, Olympus, and Toshiba. Thereby showing that the quality of accounting information of businesses, including the world's leading branded enterprises, could be more reliable, including financial statements audited by reputable auditing firms, which significantly reduces investors' confidence in the quality of accounting information on finance reports. In Vietnam, many Vietnamese enterprises publish accounting information on financial statements with very positive financial indicators. However, there is no solvency, negative profit indicators or discrepancies between pre-and post-audit data of enterprises, making investors need more confidence in the quality of accounting information. The financial statements that businesses provide with concerns about non-transparency in disclosure. The reason for this discrepancy is due to errors, mistakes in the process of recording and presenting items on financial statements, due to accounting regimes leading to accountants making flexible options or accountants having different views on accounting estimates or due to the intervention of managers to adjust the information on financial statements in its favour, especially "profit adjustment" activities. Therefore, this study is designed to look for factors affecting the quality of accounting information in Vietnamese enterprises, proposing appropriate solutions to improve the quality of accounting information the business provides.
Pages : 304-315 | 34 Views | 18 Downloads
How to cite this article:
Vu Thi Phuong Lien, Nguyen Vu Viet, Do Thi Thoa. Factors affecting the quality of accounting information on financial statements: Evidence from Vietnamese enterprises. Int J Res Finance Manage 2022;5(2):304-315. DOI: 10.33545/26175754.2022.v5.i2d.189
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International Journal of Research in Finance and Management