Financial reporting fraud is a concern for various stakeholders including shareholders, auditors, regulators, academics, and the public. Although the detection of financial reporting fraud requires the collective efforts of governance professionals and regulators, external auditors are more likely to be scrutinised if they failed to assess financial reporting fraud risk and detect material fraud. This is evident in recent fraud scandals in the UK including Tesco, BHS, Patisserie Valeri, and Carillion. The literature focused attention on the use of the traditional fraud triangle model in fraud risk assessment and so did professional audit standards. However, the findings of prior studies were not informed by the views of external auditors who are responsible for financial reporting fraud risk assessment. In addition, the traditional fraud triangle model has been criticised for its limited ability in fraud risk assessment and detection. This paper/topic will discuss and debate the suitability of the traditional fraud triangle model in the auditing context and will present the findings of a recent study that has explored external auditors’ views on what matters in the assessment of financial reporting fraud risk.
|Publication status||Accepted/In press - 20 Apr 2019|
|Event||9th Counter Fraud Conference and Forensic Accounting Conference - University of Portsmouth, Portsmouth, United Kingdom|
Duration: 5 Jun 2019 → 6 Jun 2019
Conference number: 9
|Conference||9th Counter Fraud Conference and Forensic Accounting Conference|
|Abbreviated title||9th CCFS/PBSAG annual conference|
|Period||5/06/19 → 6/06/19|
Kassem, R. (Accepted/In press). What Matters in the Assessment of Financial Reporting Fraud Risk. Abstract from 9th Counter Fraud Conference and Forensic Accounting Conference, Portsmouth, United Kingdom.