INPROFORUM 2015

Comparison of the Financial Data Quality in Audited and Unaudited Companies
Miroslava Vlčková

Language: en
Last modified: 2016-02-09

Abstract


Accounting is, or based on accounting legislation should be, a description of reality in which the characteristic accounting principles and methods are used. Base on the quality of financial information, it is possible to measure business performance, financial position, calculate the expenses and revenues, incomes and expenses and profit or loss to manage and make decisions. The quality of financial information also depends on the quality of management and on the presentation of financial data and their conformity with the reality and applicable laws. This article describes how to use the analytic hierarchy process (AHP) to get an overview to the quality of the reported financial information. The most important step is, on the basis of Saaty´s method determine the weights of the criteria in each group and then by using the AHP method determine their importance. The data quality in companies is determined on the drafted model and then the differences between data quality of audited companies and data quality of unaudited companies are detected based on the statistical methods.


Keywords


Analytic Hierarchy Process; Saaty´s Method; Criteria Quality of Data; Audited and Unaudited Companies

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