Not-for-Profit: Policy, Nonprofits, and Why Elections Matter

Overview

Most accounting studies use only public enforcement actions (SEC cases) to measure accounting fraud. However, private cases (securities class actions) also play an important enforcement role. We discuss the legal standards and processes for both public and private enforcement regimes, emphasize the importance of screening cases for credible fraud allegations, and show both yield credible fraud measures. We’ll also demonstrate these research design choices affect inferences from prior research and a hypothetical research setting. Finally, we show common measures of accounting irregularities using Audit Analytics to proxy for fraud result in significant false positives and negatives and develop a fraud prediction model for use in future research. We recommend using both public and private enforcement with appropriate screening when examining accounting fraud to reduce Type I and II errors, or reporting the sensitivity of findings across regimes. This is particularly important given the reduction in accounting-related enforcement after 2005.

Highlights

• The Power & Purpose of the Nonprofit Sector
• Current Issues at the Federal Level
• What's Happening in Sacramento
• Nonprofit Engagement in Policy-Making

Prerequisites

Basic understanding of not-for-profit organizations.

Objectives

• Understand the key challenges faced by nonprofit organizations in today's economic climate.
• Identify innovative strategies for increasing donor engagement and retention.
• Develop actionable plans to enhance organizational impact and sustainability.

Preparation

None.

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will NOT be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by CalCPA. The course expires one year from the purchase date. Format = Online Self-Study.