Purpose: This study aims to explore methods that external auditors can use to assess the rationalization of fraud in fraud risk assessment in auditing. Design/methodology/approach: An online questionnaire was used to collect data from 150 Big 4 auditors. Findings: The results reveal a total of...

Purpose: This paper aims to explore the perceptions of external auditors’ on the motivations behind management fraud, which could increase the likelihood of detecting financial reporting fraud. Design methodology/approach: Mixed research methods, namely, an online questionnaire and...

Purpose The study aims to explore the reasons behind external auditors' failure to detect and report fraud. Design/methodology/approach Semi-structured interviews were conducted with twenty-four experienced Big 4 auditors. Findings The present study reveals power issues within audit firms and...

Following the fraud scandals in large companies like Enron, WorldCom, and Xerox, investors' concern about fraud in general and fraudulent financial reporting in particular increased and is on the rise. In response to these concerns, auditing standards setters have issued fraud standards that...

The aim of this paper is to increase external auditors' knowledge about earnings management and help them spot the difference between earnings management and financial reporting fraud. A thorough literature review was undertaken to achieve the paper's aim. The secondary data used in this paper...

Purpose– Aims to determine whether red flags can be helpful for external auditors in detecting fraudulent financial reporting. The research explores whether external auditors demographic factors affect external auditors' perception about the ability of red flags to detect fraudulent financial...