... to the prior year. As such, using prior balances as a benchmark when assessing fraud risk could actually lead to a false sense of comfort, a fraud risk assessment that is too low, and inadequate levels of substantive testing and skepticism amongst audit engagement team members. As noted above, prior...

... consisting of pressure, opportunity and rationalization to understand fraud risks factors. The fraud diamond extends the fraud triangle to include an additional risk factor, capability ( Wolfe and Hermanson 2004 ). This study uses an experimental task to analyze the effect of individual fraud diamond...

.... In addition, we argue that assigning equal probabilities to outcomes assumes away the very feature of SOD that decreases fraud risk; namely, SOD adds a point of failure by requiring the fraudster to recruit other employees. We nevertheless show that SOD can increase fraud risk when its implementation requires...

... assessments ( Brody, Melendy, and Perri 2012 ; Hermanson, Justice, Ramamoorti, and Riley 2017 ). In a 2 × 2 experiment, this study examines the effects of client manager Machiavellian traits and fraud motivation on fraud risk assessments. We find that participants' fraud risk assessments are higher when...

... on the results from this study, we provide suggestions for future research. Data Availability: Form 990 data were purchased from and are available from GuideStar. Rural and urban codes were purchased from and are available from GreatData. IRS Form 990 non-profits fraud fraud risk factors anti-fraud...

...Velina K. Popova ABSTRACT Prior research finds that although auditors assess fraud risk accurately, they generally fail to adjust audit procedures appropriately. The most recent Public Company Accounting Oversight Board (PCAOB) inspections in 2016 still identify response to risks of material...