Conceptual Model for the Identification and Assessment of the Degree of Confidence in the Financial Reporting Quality of Economic Entities

Abstract

Ensuring the quality of financial reporting stands as a cornerstone in the realm of decision-making within economic entities, to foster trust among investors and stakeholders alike. A robust financial reporting framework not only furnishes precise and pertinent information but also bolsters credibility, painting an accurate picture of an entity's financial health and performance. It is crucial to develop a conceptual framework aimed to analyze the quality of financial reporting. This design of a conceptual model should incorporate key criteria and assign appropriate weights to each, facilitating a thorough assessment, which is vital for enhancing the transparency, relevance, and integrity of financial data disclosed by organizations. Additionally, by improving financial reporting quality, this model serves as a fundamental tool to increase the confidence of investors, creditors, and other stakeholders in the financial information presented.