We build a theoretical framework for cross-border fraud in which fraud complaints follow a gravity model. Using several … estimates to estimate country-level fraud rates and identify clusters of countries with high fraud rates. Finally, in line with … our model predictions, high fraud rates are negatively correlated with per-capita GDP and measures of strong regulatory …

insufficient attention to fraud while they are busy executing the planned audit procedures. Leveraging prospective memory theory, I … planned audit procedures and (ii) remaining broadly skeptical and alert for fraud. Regulators note instances in which auditors … do not take actions that effectively respond to fraud risks during these later stages, suggesting auditors may devote …