The Relation between Individual Differences and Accountants' Fraud Detection Ability

Abstract

This report examines the potential application of the deception detection literature to auditing research. A pilot study focusing on auditor quality perceptions post Enron is used to explore the potential relevance of deception detection research theory and techniques. The pilot study findings highlight some potential areas for researchers to focus on in terms of construct, internal, external and statistical validity.

Machiavellianism, Moral Orientation, Social Desirability Response Bias, and Anti-intellectualism: A Profile of Canadian Accountants

“…Although several accounting studies have investigated how some personality traits of accountants interact with other variables within an ethics framework (Shaub et al 1993;Tsui and Gul 1996;Bernardi 1997;Hyatt and Prawitt 2001;Yetmar and Eastman 2000;Clikeman et al 2001;Douglas et al 2001;Pope 2005;Shafer 2008;Wakefield 2008;Shafer and Simmons 2008;Fathil and Schmidtke 2010;Hartmann and Maas 2010;Shafer and Wang 2011), most of these studies used subjects from the U.S. The results from the studies that did include culturally different subjects suggest that individuals' Machiavellianism and ethical orientation vary across cultures (Douglas and Wier 2005;Rawwas et al 2005;Robertson et al 2008;Vitell and Patwardhan 2008;Forsyth et al 2008).…”

“…A review of the extant literature indicates that Machiavellianism is frequently included in personality trait research in accounting (Pope 2005;Wakefield 2008;Shafer and Simmons 2008;Fathil and Schmidtke 2010;Hartmann and Maas 2010;Shafer and Wang 2011). Machiavellians are those who manipulate others to achieve their desired goals.…”

“…Machiavellianism, a widely recognized morals-related individual differences variable, has been shown to be associated with unethical behavior (e.g., Verbeke et al 1996;Rayburn and Rayburn 1996;Bass et al 1999) and is frequently included in personality trait research in accounting (Pope 2005;Wakefield 2008;Shafer and Simmons 2008;Fathil and Schmidtke 2010;Hartmann and Maas 2010;Shafer and Wang 2011). Ethical orientation, an individual's framework of beliefs, attitudes, and values, has been shown to influence accountants' ability to recognize an ethical issue (Shaub et al 1993); however, we are aware of only one study that combines ethical orientation with Machiavellianism (Wakefield 2008).…”

Gestión del riesgo organizacional de fraude y el rol de Auditoría Interna

“…La pérdida media de un caso en particular de fraude ocupacional fue de US$ 150.000. Considerando que el fraude es costoso y la detección del fraude es compleja, la identificación de métodos para reducir el fraude debería ser de suma importancia para las partes interesadas (stakeholders), incluidos accionistas, instituciones financieras y clientes (Fathil y Schmidtke, 2010). Ello implica la creación o fortalecimiento de una unidad independiente que permita evaluar o implementar de manera oportuna (ex-ante) programas de prevención de fraude.…”