Fraud risk assessment and detection of Fraud: The moderating effect of personality.

External auditors are required by the auditing standards to provide reasonable assurance that the financial statements are free from material misstatements. Inability of the external auditors to detect material misstatements, particularly fraud, may expose the external auditors to litigation. The pr...

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Main Authors: Jaffar, Nahariah, Haron, Hasnah, Mohd Iskandar, Takiah, Salleh, Arfah
Format: Article
Language:English
English
Published: Canadian Center of Science and Education 2011
Online Access:http://psasir.upm.edu.my/id/eprint/24245/
http://psasir.upm.edu.my/id/eprint/24245/1/Fraud%20risk%20assessment%20and%20detection%20of%20Fraud.pdf
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author Jaffar, Nahariah
Haron, Hasnah
Mohd Iskandar, Takiah
Salleh, Arfah
author_facet Jaffar, Nahariah
Haron, Hasnah
Mohd Iskandar, Takiah
Salleh, Arfah
author_sort Jaffar, Nahariah
building UPM Institutional Repository
collection Online Access
description External auditors are required by the auditing standards to provide reasonable assurance that the financial statements are free from material misstatements. Inability of the external auditors to detect material misstatements, particularly fraud, may expose the external auditors to litigation. The present study aims to examine the moderating effect of personality factors (that are neuroticism, extraversion, conscientiousness, openness to experience and agreeableness) on the relationship between the external auditors’ ability to assess fraud risk and their ability to detect the likelihood of fraud. The present study utilizes an experimental approach by sending case materials to audit partners or audit managers attached to auditing firms operating in Malaysia. The result, however, shows that none of the personality factors has moderating effect on the relationship between the external auditors’ ability to assess fraud risk and their ability to detect the likelihood of fraud.
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spelling upm-242452015-10-07T01:01:46Z http://psasir.upm.edu.my/id/eprint/24245/ Fraud risk assessment and detection of Fraud: The moderating effect of personality. Jaffar, Nahariah Haron, Hasnah Mohd Iskandar, Takiah Salleh, Arfah External auditors are required by the auditing standards to provide reasonable assurance that the financial statements are free from material misstatements. Inability of the external auditors to detect material misstatements, particularly fraud, may expose the external auditors to litigation. The present study aims to examine the moderating effect of personality factors (that are neuroticism, extraversion, conscientiousness, openness to experience and agreeableness) on the relationship between the external auditors’ ability to assess fraud risk and their ability to detect the likelihood of fraud. The present study utilizes an experimental approach by sending case materials to audit partners or audit managers attached to auditing firms operating in Malaysia. The result, however, shows that none of the personality factors has moderating effect on the relationship between the external auditors’ ability to assess fraud risk and their ability to detect the likelihood of fraud. Canadian Center of Science and Education 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/24245/1/Fraud%20risk%20assessment%20and%20detection%20of%20Fraud.pdf Jaffar, Nahariah and Haron, Hasnah and Mohd Iskandar, Takiah and Salleh, Arfah (2011) Fraud risk assessment and detection of Fraud: The moderating effect of personality. International Journal of Business and Management, 6 (7). pp. 40-50. ISSN 1833-8119 http://web.ccsenet.org/ 10.5539/ijbm.v6n7p40 English
spellingShingle Jaffar, Nahariah
Haron, Hasnah
Mohd Iskandar, Takiah
Salleh, Arfah
Fraud risk assessment and detection of Fraud: The moderating effect of personality.
title Fraud risk assessment and detection of Fraud: The moderating effect of personality.
title_full Fraud risk assessment and detection of Fraud: The moderating effect of personality.
title_fullStr Fraud risk assessment and detection of Fraud: The moderating effect of personality.
title_full_unstemmed Fraud risk assessment and detection of Fraud: The moderating effect of personality.
title_short Fraud risk assessment and detection of Fraud: The moderating effect of personality.
title_sort fraud risk assessment and detection of fraud: the moderating effect of personality.
url http://psasir.upm.edu.my/id/eprint/24245/
http://psasir.upm.edu.my/id/eprint/24245/
http://psasir.upm.edu.my/id/eprint/24245/
http://psasir.upm.edu.my/id/eprint/24245/1/Fraud%20risk%20assessment%20and%20detection%20of%20Fraud.pdf