Determinates of irregularities reported by audits of a federal loan program

Abstract

The study examines audit reports of a federal loan program which has a high incidence of reported irregularities. The following research questions are examined: (1) are there characteristics common to projects in which irregularities are reported? (2) Can variables be identified which are significant in differentiating between projects with and without reported irregularities? Projects with reported irregularities are found to be significantly associated with internal control weaknesses, related party transactions, lower net income, smaller cash flow, fewer projects per developer, and an auditor with fewer Farmers Home Administration (FmHA) clients.

Citation

Lawrence, J.E. (1999), "Determinates of irregularities reported by audits of a federal loan program", Journal of Public Budgeting, Accounting & Financial Management, Vol. 11 No. 1, pp. 1-18. https://doi.org/10.1108/JPBAFM-11-01-1999-B001