Are auditors sensitive enough to fraud?
Abstract
This study investigates how auditors alter their audit program decisions in response to an increased likelihood of fraud risk. A total of 48 auditors from one Big 5 CPA firm were surveyed regarding the type of audit procedures they would use in response to an increased likelihood of material misstatements caused by fraud. The auditors were provided with a scenario that reflected changes in economic and industry factors that increase audit risk and typically require a reevaluation of the audit program. They were asked to make choices as to which tests of balances and details and analytical procedures to perform. The results of the study are summarized and tabulated and then explained in terms of the tradeoff between effectiveness and efficiency and corporate governance.
Keywords
Citation
Makkawi, B. and Schick, A. (2003), "Are auditors sensitive enough to fraud?", Managerial Auditing Journal, Vol. 18 No. 6/7, pp. 591-598. https://doi.org/10.1108/02686900310482722
Publisher
:MCB UP Ltd
Copyright © 2003, MCB UP Limited