Framing effects occur when an agent (e.g., a manager) constructs a description of some entity (e.g., a company) such that the way information is stated (framed) influences the decisions made by other agents (e.g., auditors, analysts, and investors). Auditors, in particular, are charged by...

Fraud detection is made difficult in part due to the fact that most auditors have relatively little experience with it. We address the issue of what kind of knowledge supports success in financial statement fraud detection by examining the more general information processing problem of detecting...

Fraud detection is usually done by looking for red flags and various other cues of deceit. Research in auditing and psychology has questioned the effectiveness of these methods. Here we summarize work on constructing a new cognitive approach to understanding both success and failure at detecting...