frequency of financial reporting fraud, their use of financial statement information, the importance they place on conducting … their own fraud risk assessments, and their use of fraud red flags. We find that investors' perceptions of the frequency of … fraud and their use of financial statement information positively influence the importance they place on conducting their …

frequency of financial statement fraud in the economy, their use of financial statement information, the importance they place … on conducting their own fraud risk assessments, and their use of fraud red flags. We find that both investors …' perceptions of the frequency of fraud in the economy and their use of financial statement information positively influence the …

the comparison of financial measures and NFMs. We find that when the NFM red flag is present (i.e., higher fraud risk) and … fraud risk. Additionally, we observe that the effect of transparency on investment levels is driven by investors with …

Fraud detection is among the highest priorities for the accounting profession, standard setters, regulators, and … misstated due to fraud. Via a survey of practicing auditors, we find that auditors rely heavily on prior year balances and … flows outperform both prior year balances and relations within the client’s financial data when assessing fraud risk. Of all …

fraud risk as high and low, auditors are more likely to react to the inconsistency (i.e., rely more on inconsistent NFMs … implications of NFMs and fraud risk is high (vs. low). Our results suggest the following: (1) a minority of auditors use NFMs as an … information source for testing and do not increase their reliance on NFMs when the NFMs point to a fraud red flag; (2) the …