Home / Summaries / Class notes - Auditing / fraud-accounting-triangle

Artikel Albrecht et al. (2018)

4 important questions on Artikel Albrecht et al. (2018)

They study this according the fraud triangle. Explain the fraud triangle.

Fraud risk factors are event of conditions that indicate:
- An incentive or pressure to perpetrate fraud
- An opportunity to carry out the fraud (management accounting competence is seen as an opportunity)
- An attitude or rationalisation that justifies the fraudulent actions

Why do they study this on executive officers?

They are in a unique position to influence a company's accounting and disclosures.

H2a and H2b are tested by dividing the sample into subsamples. Which are they?

The are divided into subsamples based on relatively higher or lower attitude to justify the fraudulent action.

Why are the findings important for auditors?

Auditors should be aware of the risks that come with executives that possess accounting competence, especially when executives have incentives to manipulate the financial statements. Auditors should take these risks into account when determining the required audit procedures and audit fees.

The question on the page originate from the summary of the following study material:

Auditing

View summary