Title

A Synthesis of Fraud-Related Research

Authors

Authors

G. M. Trompeter; T. D. Carpenter; N. Desai; K. L. Jones;R. A. Riley

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Audit.-J. Pract. Theory

Keywords

fraud; auditing; literature review; SAS 99; GENERAL STRAIN THEORY; WHITE-COLLAR CRIME; EARNINGS MANAGEMENT; FINANCIAL-STATEMENTS; RISK; BUSINESS; DECISION; JUDGMENTS; BEHAVIOR; MODEL; Business, Finance

Abstract

We synthesize academic literature related to fraudulent financial reporting with dual purposes: (1) to better understand the nature and extent of the existing literature on financial reporting fraud, and (2) to highlight areas where there is need for future research. This project extends the work of Hogan et al. (2008), who completed a similar synthesis project, also sponsored by the Auditing Section of the American Accounting Association, in 2005. We synthesize the literature related to fraud by examining accounting and auditing literature post-Hogan et al. (2008) and by summarizing relevant fraud literature from outside of accounting. We review publications in accounting and related disciplines including criminology, ethics, finance, organizational behavior, psychology, and sociology. We synthesize the research around a model that illustrates the auditor's approach to fraud. The model incorporates auditors' use of the fraud triangle (i.e., management's incentive, attitude, and opportunity to commit fraud), their assessment of the existence and effectiveness of the client's anti-fraud measures (e. g., corporate governance mechanisms and internal controls), and their consideration of possible fraud schemes and concealment techniques when making an overall fraud risk assessment of the client. The model further illustrates how auditors can incorporate this assessment into an overall strategy to detect fraud by implementing appropriate fraud-detection procedures. We summarize the recent literature of each component of the model and suggest avenues for future research.

Journal Title

Auditing-a Journal of Practice & Theory

Volume

32

Publication Date

1-1-2013

Document Type

Article

Language

English

First Page

287

Last Page

321

WOS Identifier

WOS:000319466700009

ISSN

0278-0380

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