To read this content please select one of the options below:

Auditors' perception of fraud risk indicators: Malaysian evidence

Malcolm Smith (Leicester Business School, Bede Island Graduate Centre, De Montfort University, Leicester, UK)
Normah Haji Omar (Leicester Business School, Bede Island Graduate Centre, De Montfort University, Leicester, UK)
Syed Iskandar Zulkarnain Sayd Idris (Leicester Business School, Bede Island Graduate Centre, De Montfort University, Leicester, UK)
Ithnahaini Baharuddin (Faculty of Accountancy, MARA University of Technology, Johor, Malaysia)

Managerial Auditing Journal

ISSN: 0268-6902

Article publication date: 1 January 2005

8860

Abstract

Purpose

Aims to identify the most important red flags as individually perceived by auditors, and explores whether auditors' demographic factors might impact on their perception of the relative importance of red flags in Malaysia, particularly in the Klang Valley area.

Design/methodology/approach

This study employed a mailed survey as a method of data collection. The respondents to this survey are practicing auditors from audit firms in Kuala Lumpur. The sample of auditors is taken from the population of domestic listed audit firms with the Malaysian Institute of Accountants as of 27 March 2003. A simple random technique is applied to construct the sample.

Findings

In general, subjects indicated that the operating and financial stability category was judged as most important, followed by management characteristics and influence over the control environment, and then finally by industry characteristics.

Originality/value

It would be interesting to examine whether these fraud risk indicators are indeed helpful in the investigation of reported misconduct and fraudulent cases in Malaysia. The findings may help researchers to develop a new fraud risk indicator that takes into consideration actual instances of fraud in Malaysia.

Keywords

Citation

Smith, M., Haji Omar, N., Iskandar Zulkarnain Sayd Idris, S. and Baharuddin, I. (2005), "Auditors' perception of fraud risk indicators: Malaysian evidence", Managerial Auditing Journal, Vol. 20 No. 1, pp. 73-85. https://doi.org/10.1108/02686900510570713

Publisher

:

Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited

Related articles