The journal that has been provided is about the Errors and Abuses in Financial

Accounting and Results on the basis of the conference of Economics and Finance that had
been on 22-23 October 2015 in Istanbul, Turkey. The journal is about the investigation of the
reasons and the results of accounting fraud and errors, which do not affect the tax assessment.
Every companys documents and transactions are very essential to be recorded by the
related parties such as managers, employees, shareholders and employees. However, the
accuracy of the documents and the transactions will fall onto directors, financial advisors and
certified public accountants (CPA). According to the journal, accounting fraud and errors are
occurring in small and medium enterprises (SME) in Turkey are getting worse and are
affecting the financial statements.
Furthermore, the journal states that any documents that are related with the operations
that are conducted by the shareholders of firm and employees should be presented to the
CPA. Any true analysis that is conducted according to a non present statement resulting to be
a false documents. This will causes wrong decisions will be made and financial punishments
such as tax loss for not being loyal to tax procedure law or punishments that make firm and
its shareholder pay financial punishments.
In Turkey, there are attempts of decreasing the tax assessment by lowering the income
or increasing the expenses of the firm in order to lower the taxable net profit. Although the
external accounting procedures use specific accounting programs to control the fraud such as
process management, internal control and inspection, some errors would still occur due to
incomplete or inaccurate entries that cannot be avoided.
The journal also states the general mistakes and corrections that are done at balance
sheet and adjustments which are used to provide the equality between active and passive. For
example, for the cheques received, the common mistakes are collected cheques, returned bad
cheques advance cheques are not following the process of firms drawing of dues.
To be concluded for the journal, error and abuses to show the credible of financial
statements are usual as common things that cannot be happened. Financial analyst are trained
and employed to overcome this issue. For this purpose, the methods and systems that
financial analyst should be displayed by inspectors.

After reading, searching and analysing the journal, it can be concluded that errors and
fraud are occurring in Turkey and might be also can be happening in Malaysia. However,
Malasyia has the MFRS 108 to encounter the problems.
The intention of this Standard is to enhance the relevance and reliability of financial
statements as an entity, and the comparability of those financial statements over time and
with the financial statements of other entities. Although accounting policies selected are to be
applied consistently over a period of time, there are circumstances when changes in
accounting policy and changes in accounting estimates may be required, and errors may
sometimes occur.
MFRS 108 has the accounting policies that can be referred to in order to prohibit the
fraud and abuses. The examples are inventory valuation method, choice of using cost method
or revaluation method for subsequent measurement of property, plant and equipment and
capitalisation or writing off of borrowing costs.
These policies can overcome the omission of recording expenses to gain better
performance result which stated in the journal. Accounting policies should be applied
consistently for similar transaction, events and conditions. Principle of consistency is also
applicable to categories if categorisation is permissible.
There are accounting treatments that can be applied in order to adjust the financial
statements such as retrospective which the adjusting must be at the opening balance of each
affected component for the earliest prior period. Moreover, there are prospective application
which means that the applying of the new accounting estimates to transaction after the date of
the estimates is change.
These accounting treatments are created to overcome the fraud, abuses and the
accounting mistakes. The recording of the documents to make the financial statements should
be true and fair so that an accurate financial statements can be obtained.