Anchoring and Adjustment in Probabilistic Inference in Auditing

Joyce, Edward J.; Biddle, Gary C.

doi:10.2307/2490965

Cited by 209 publications

(109 citation statements)

References 6 publications

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“…In addition, fraud risk assessment helps auditors to determine the nature and extent of audit procedures planned to increase the likelihood of uncovering fraud (Wuerges, 2011;Bloomfield, 1997 Previous research in accounting has shown that much attention has been dedicated to fraud and fraud risk related issues (Allen et al, 2006;Cushing et al, 1995). Unfortunately, these studies found that auditors are poor assessors of fraud risk and as a result failed to detect fraud in financial statements (Knapp & Knapp, 2001;Joyce & Biddle, 1981). For this reason, it requires those in authority to consider the impact of changes in the external environment and within its activity model that may render internal control less effective.…”

Section: Fraud Risk Assessment Task Performance (Tpfra)mentioning

confidence: 99%

An empirical investigation of fraud risk assessment and knowledge requirement on fraud related problem representation in Nigeria

Popoola

Ahmad

Samsudin

2015

Accounting Research Journal

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Purpose – The paper aims to investigate Task Performance Fraud Risk Assessment (TPFRA) and Knowledge Requirement (KR) of the forensic accountant and auditor on Fraud-Related Problem Representation (FRPR) in the Nigerian public sector. Design/methodology/approach – The study used cross-sectional design and 400 survey questionnaires. The respondents are real professional people (auditors and forensic accountants in the Nigerian public sector) as true representatives to enhance the generalization of the outcomes. A total of 36 indicator items was measured on five-point Likert scale from 1 (strongly disagree) to 5 (strongly agree). Partial Least Square – Structural Equation Modelling 2.0 3M and IBM SPSS Statistics 20.0 were used as the primary statistical analysis tool for the study. Findings – The results of the present study confirm the positive relationship between KR on TPFRA, positive relationship of KR on FRPR and positive relationship of FRPR and TPFRA. Specifically, the results revealed that FRPR positively mediates the relationship between TPFRA and KR (forensic accountant and auditor) in the areas of fraud prevention, detection and response. Research limitations/implications – The first limitation deals with fraud and corrupt practices in a developing country, Nigeria. Examining the mediating influence of FRPR on KR and TPFRA in the public sector could be considered as sensitive and raise the issue of bias. The second limitation is the adoption of cross-sectional design in which data are collected at one point in time. Researchers are encouraged to use a longitudinal design to explore interactions between KR, FRPR and TPFRA. Practical implications – This empirical study has revealed the value of KR (forensic accountant and auditor) as a significant capability requirement in the workplace. In addition, it shows the importance of FRPR as an important mental state in decision-making or judgment and also the significance of FRPR as an important mediating variable on KR and TPFRA. Originality/value – No nation is immune to fraud, and loss due to fraud in the public sector is enormous and costly; the result of this research will improve the KR of auditors and forensic accountants in the areas of fraud detection, prevention and response. It will also contribute to the regulatory, legal and institutional frameworks in accounting and auditing systems in Nigeria and portend an increase in demand for forensic accountants.

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Section: Fraud Risk Assessment Task Performance (Tpfra)mentioning

confidence: 99%

An empirical investigation of fraud risk assessment and knowledge requirement on fraud related problem representation in Nigeria

Popoola

Ahmad

Samsudin

2015

Accounting Research Journal

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“…Auditors are generally poor assessors of fraud risk assessment (Joyce & Biddle, 1981;Hackenbrack, 1992;Knapp & Knapp, 2001). Hence, the pronouncement evokes reaction from some accounting researchers towards improving auditors' fraud risk assessment.…”

Section: Fraud Risk Assessmentmentioning

confidence: 99%

The Impact of Task Performance Fraud Risk Assessment on Forensic Skills and Mindsets: A Conceptual Model

et al. 2015

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“…321 The evidence also reveals systematic errors by professionals with expertise in tasks that require complex judgments and decisions in business and finance. 322 For instance, studies found anchoring effects among veteran accountants and real estate brokers, 323 desirability bias among investment managers, 324 subadditive judgments by options traders, 325 and framing effects among financial planners. 326 Still one might hope for a better alignment with rational models on the part of top corporate managers due to selection effects.…”

Section: ] B E H Av I O R a L Ant I T R U S T 59mentioning

confidence: 99%