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Aussie Auditors’ Role In Reverse Factoring Disclosure Questioned

PYMNTS

Several high-profile corporate collapses and initiatives from corporate accounting standard-setters have raised questions about businesses’ use of supply chain finance and whether the trade finance tool prevents investors and auditors from gaining a transparent view into company finances. Reverse Factoring, Auditing Scrutinized.

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Top accounting issues in 2023

ThomsonReuters

The M-Score is widely used in capital markets and predicted the well-known Enron fraud; we construct a quarterly average M-Score across firms and use it to predict economic outcomes,” they wrote. It is based on eight predictors of misreporting, including whether earnings are supported by cash flows.

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