“…Psychologists, economists, and sociologists who study the propensity to lie have come generally to the agreement that nearly 10 percent of all people habitually lie just for the "high" it gives them to try and get away with lying (e.g., see evidence summarized in Salterio and Webb, 2006). As we expect that business people, on average, are no more honest than the population as a whole, the current system that includes the external audit with its current incentives has eliminated up to 90 percent of expected fraud (i.e., 10 percent of all people being habitual liars and less than 1 percent of financial statements being fraudulent per Jamal, 2008a). Further, the current system deals well with the 80 percent of the population that needs at least a small incentive to stay honest in face of temptation (see the evidence on the overall propensity to lie summarized in Salterio and Webb, 2006).…”