Purpose: This study aims to explore methods that external auditors can use to assess the rationalization of fraud in fraud risk assessment in auditing. Design/methodology/approach: An online questionnaire was used to collect data from 150 Big 4 auditors. Findings: The results reveal a total of...

Purpose: This paper aims to explore the perceptions of external auditors’ on the motivations behind management fraud, which could increase the likelihood of detecting financial reporting fraud. Design methodology/approach: Mixed research methods, namely, an online questionnaire and...

The aim of this paper is to increase external auditors' knowledge about earnings management and help them spot the difference between earnings management and financial reporting fraud. A thorough literature review was undertaken to achieve the paper's aim. The secondary data used in this paper...

Purpose– Aims to determine whether red flags can be helpful for external auditors in detecting fraudulent financial reporting. The research explores whether external auditors demographic factors affect external auditors' perception about the ability of red flags to detect fraudulent financial...

Following the fraud scandals in large companies like Enron, WorldCom, and Xerox, investors' concern about fraud in general and fraudulent financial reporting in particular increased and is on the rise. In response to these concerns, auditing standards setters have issued fraud standards that...

Fraud in corporations is a topic that receives significant and growing attention from regulators, auditors, and the public. Increasingly external auditors are being asked to play an important role in helping organizations prevent and detect fraud. Detecting fraud is not an easy task and requires...