دانلود Are Fraud Specialists Relatively More Effective than Auditors at Modifying Audit Programs in the Presence of Fraud Risk

Abstract

Previous   studies   indicate   that   auditors   are   able   to   identify   fraud   risk factors, but may not be able to translate this knowledge into an audit plan that effectively takes  these  factors  into  account  to  increase  the  likelihood  of  detecting  fraud.  Fraud specialists  may  be  able  to  compensate  for  such  limitations.  This  study  investigates  the relative merits of involving fraud  specialists in assisting auditors by developing an audit plan that would effectively address fraud risk in a revenue cycle. Results show that fraud specialists  did  not  differ  from  auditors  in  the  number  of  procedures  selected  from  a standard  audit  program;  nor  were  these  procedures  cumulatively  more  effective  than those   selected   by   auditors.   Fraud   specialists   generated   a   greater   number   of   non-standard   additional   audit   procedures,   and   those   procedures   were   marginally   more effective,   but   less   efficient,   than   those   of   auditors,   except   for   certain   groups   of procedures. Finally, although the fraud specialists proposed significantly more additional (non-standard)   procedures   than   auditors,   their   proposed   budget   increase   for   this category of procedures was  significantly  smaller  than the  budget increase proposed  by auditors. Adjustments to the overall time budget did not differ between fraud specialists and  auditors.