... fraud. We find an association between a prosecutor’s financial resources and formal prosecutorial charges but not for gender. We also find an increasing trend of auditor referrals but static levels of formal criminal charges filed by prosecutors. Our findings highlight the complexity of the auditor...

...Melvin A. Lamboy-Ruiz; Britton A. McKay; Andrea M. Scheetz; Timothy A. Pearson ABSTRACT Two 2 × 2 experiments are used to investigate both sides of a fraud event, the fraudster and the whistleblower, in which an individual with access to hospital personal protective equipment (PPE) offers to sell...

... of reconstructing taxable income, including tax fraud and evasion; (3) corporate culture and ethical issues; (4) fraud in tax factors of performance, risk, and disclosure; and (5) internal control and tax assessment. Generally, we find research on taxation and forensic accounting to be scant. This space creates...

...Adam W. Du Pon; Stephanie Hairston; Dallin O. Smith ABSTRACT We examine fraud from an industry competition perspective, oriented from inventory theory. We find that fraud occurs among manufacturers more than nonmanufacturers and that the association between price competition and fraud...

... of the suit, which is very different from common law fraud suits. It was brought by the New York State Attorney General, not the purported victims. There are sharply divergent views on whether the suit should have been brought. I also discuss five other issues of interest to forensic accountants pertinent...

... fraud loss) related to gender included in the ACFE Reports to the Nations suggests that male perpetrators cause significantly more losses than female perpetrators. Using a lens of opportunity, social comparison, and social identity, as opposed to the gendered theory of crime, we explore the impact...

... immediately preceding the COVID-19 pandemic. Throughout this review of academic literature and the legal framework regarding mandates, we discuss examples of fraud cases during the pandemic and the aspects impacting fraud rationalization and pressures. Our results show that more research is needed...

... cohesion, deep cohesion, and narrativity) into a logistic model to test their predictive power for financial misreporting. We find that compared to the MD&As of nonfraud firms, the MD&As of fraud firms connect clauses and sentences less coherently, use more story-like language, and show a higher...

... 2023 18 08 2023 2023 AICPA Code of Professional Conduct accounting ethics fraud forensic auditing KWC would not audit or verify the information provided by Paul (or on Paul’s behalf) and that the engagement “does not include any procedures designed to detect...

... misbehavior, the characteristics associated with contractor misconduct are relatively underexplored in academic literature. In this study, we examine whether and to what extent firm characteristics predict federal government contractor misbehaviors, which range from minor statutory violations to fraud. We...

...Mackenzie M. Festa; Megan M. Jones; Kevin G. Knotts ABSTRACT In this paper, we profile coronavirus disease 2019 (COVID-19) relief program frauds and agencies tasked with investigating those related crimes. Using a unique dataset of Department of Justice (DOJ) press releases from March 2020...

... evaluating ICO projects, this study examines the use of textual analysis in detecting potential ICO fraud cases. By using Linguistic Inquiry and Word Count (LIWC), we extracted the textual characteristics of 1,402 English whitepapers that may have been indicators of potential fraud based on the prior...

...Dana R. Hermanson ABSTRACT This paper describes my professional journey focusing on human aspects of fraud and corporate governance. I describe the initial “light bulb” moments that highlighted the importance of people and the years of human-focused fraud and governance research and teaching since...

... and the actions that ensue. Two-hundred sixteen participants rated the likelihood and seriousness of fraud and the investigative resources applied based upon a written script. Results suggest that the wording utilized by a tipster impacts fraud likelihood assessments, which in turn impacts tip importance...

...Joseph F. Brazel; Christine Gimbar; Tammie J. Schaefer ABSTRACT This study explores two potential safeguards against liability when auditors exercise professional skepticism, but do not detect a fraud: (1) a firm policy requiring a specific level of professional skepticism in high-risk audit areas...

... and NFMs. We find that when the NFM red flag is present (i.e., higher fraud risk) and transparent, investors choose lower investment levels. However, without increased transparency, as is typical in the current reporting environment, we observe that investors are more likely to increase their investment...

...Kevan L. Jensen; Mark W. Smith ABSTRACT This study examines the effectiveness of assessment questions in distinguishing perpetrators of dishonest acts from non-perpetrators. Virtually all fraud examination or forensic accounting textbooks teach that assessment questions are useful in identifying...

...Mark Edmonds; Kate B. Sorensen; Matthew A. Stallings ABSTRACT Evidence from major fraud investigations has revealed that auditors often fail to attend to visual fraud cues (i.e., red flags) within substantive testing evidence. Research in psychology on inattentional blindness (IB) provides...

... 990. Adjusting the wording of the significant diversion of assets question to be more transparent results in greater disclosure. The authors thank the Association of Certified Fraud Examiners and the Institute for Fraud Prevention for the grant funding that made this work possible. We also thank...

... misappropriations of about $300,000. This case allows students to analyze a fraud in a local governmental unit where limited resources and incompatible duties are common within the accounting function. The loss of documentary evidence challenges investigation of the fraud and provides students with an opportunity...