The Association for Certified Fraud Examiners (ACFE) estimates potential losses from fraudulent activity are in the trillions of dollars each year for the global economy. In an effort to deter fraud, regulations such as the Dodd-Frank Whistleblower Program and the Sarbanes Oxley Act encourage...

Prior research suggests that evaluating employee reactions can help understand the human costs of unethical behavior. However, there is limited research exploring emotional reactions to unethical behavior and no studies that explore emotional reactions when financial statement fraud occurs. In...