An international perspective on the misstatements and reliability of financial statements

Anar I. Kidirmaganbetova, Oksana Yu. Kogut, Katarzyna Czerewacz-Filipowicz, Laila A. Bimendiyeva

Abstract

This article examines the importance of ensuring the reliability of financial statements, the causes of distortions, and the possibility of minimizing them in different countries, such as the USA, UK, Japan, Kazakhstan, and China. The purpose is to emphasize the importance of reliable financial reporting and to find the best methods for identifying financial reporting misstatements when comparing different countries. The research includes a literature review that reveals the role of international standards in preventing financial fraud and building confidence in financial reporting. This section selects studies that emphasize the need to study this topic due to the level of manipulation of financial reporting data, regional and cultural differences, and the importance of company ethics and internal controls. Research methods include quantitative methods, analytical methods, literature review, statistical methods, and case study comparisons, in particular, studies of companies in Kazakhstan and Japan. The study reveals that financial statement distortions are affected by multiple factors, such as regulatory supervision, corporate governance, and transparency mandates. The practical application of the Benford statistical method is considered using the example of companies in Kazakhstan and Japan. The use of Benford and Chi-square methods to analyze financial data is very beneficial and shows their relationship and applicability in companies in different countries, particularly Kazakhstan and Japan, to identify data bias, but when working only with certain and preferably larger samples of data types for better results. The article outlines methods for identifying and preventing financial reporting misstatements through internal controls, regulatory oversight, and statistical analysis. The necessity of compliance with accounting standards to maintain transparency and economic stability is emphasized.

Authors

Anar I. Kidirmaganbetova
Oksana Yu. Kogut
cogut.oksana@kaznu.edu.kz (Primary Contact)
Katarzyna Czerewacz-Filipowicz
Laila A. Bimendiyeva
Kidirmaganbetova, A. I. ., Kogut, O. Y. ., Czerewacz-Filipowicz, K. ., & Bimendiyeva, L. A. . (2025). An international perspective on the misstatements and reliability of financial statements. International Journal of Innovative Research and Scientific Studies, 8(2), 4158–4169. https://doi.org/10.53894/ijirss.v8i2.6250

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