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The issue of auditors' responsibility for financial statement fraud is a primary concern of most major auditing standard setting bodies in the world. This paper explores the actual and potential contribution of behavioral research in informing standard setters regarding auditors' consideration of fraud, and in assisting audit firms in implementing auditing standards in this area. As such, the paper should be of interest to both behavioral auditing researchers and standards setters.

As an organizing scheme for our review, we analyze the extant behavioral literature on fraud according to four basic issues identified by the Fraud Task Force of the U.S. AICPA's Auditing Standards Board: (1) the validity of the concept of a separate fraud risk assessment; (2) identification and evaluation of risk factors in fraud risk assessment; (3) the effects of decision aids or decision aid design on evaluation of fraud risk; and (4) the relationship between a separate fraud risk assessment and other phases of the audit. We note the importance of each issue, and how each is addressed in current U.S. auditing standards (SAS 82) and in the proposed revision of international auditing standards (ISA 240). Further, we assess how well behavioral research has addressed each issue, identify unmet research needs, and suggest how behavioral studies could aid in addressing those needs.

Purpose: This chapter aims to identify and evaluate the various components of business model disclosures in an Integrated Report and ascertain how the notion of business model is perceived among practitioners.

Need for the Study: According to previous research, the International Integrated Reporting Council’s (IIRC) objective of improving corporate reporting by encouraging organisations to disclose their business model has not found the desired recognition. Therefore, the study elaborates on the various components of business model reporting and their implications on corporate reporting in general.

Methodology: A review of literature was conducted to identify and analyse research based on business models and their disclosures in integrated reporting. A narrative review was undertaken for selected literature.

Findings: The findings suggest that most large-sized organisations use integrated reporting for impression management and are not inclined to disclose too much about their business models for fear of competition. There is still a lack of clear understanding of what a business model should entail.

Practical Implication: This study adds to the research on business model disclosures in integrated reporting. Voluntary disclosure and a better understanding of such disclosures will prepare organisations of all sizes and industries for an event when Integrated Reporting becomes statutory.