Internal audit reporting lines,fraud risk decomposition,and assessments of fraud risk

The main purpose of this research is to examine the effects of internal audit reporting lines on fraud risk assessments made by internal auditors when the level of fraud risk varies. Significant emphasis has been placed on the importance of reporting lines in maintaining the autonomy of internal auditors, but the perceived benefits of requiring internal audit to report directly to the audit committee have not been validated or systematically investigated. Results of an experiment involving 172 experienced internal auditors and additional survey findings indicate that internal auditors perceive more personal threats when they report high levels of risk directly to the audit committee, relative to management. Perceived threats lead internal auditors to reduce assessed levels of fraud risk when reporting to the audit committee relative to when reporting to management. This finding runs counter to the anticipated benefits of requirements that the internal audit function report directly to the audit committee, and it reveals potential conflicts of interest and independence threats created by the audit committee itself. We also investigate the effects of fraud risk decomposition on risk assessments made by internal auditors. We find that fraud risk assessment decomposition does not have the same effects on internal auditors as it has on external auditors, and the effects of decomposition do not align with the expected benefits of decomposition.     

The effects of experience and explicit fraud risk assessment in detecting fraud with analytical procedures

This paper reports the results of an experiment that examined the effects of audit experience and explicit fraud risk assessment instructions on the effectiveness of analytical procedures in detecting financial statement fraud. The results of this study suggest that audit managers are more effective than audit seniors in assessing the risk of fraud with analytical procedures. Additionally, explicit fraud risk assessment instructions resulted in more effective assessments of the presence of fraud. These results have implications for the assignment of auditors to tasks and the structuring of these tasks.     

银行业欺诈风险管理的战略性抉择

中国银行业已全面开放，市场竞争呈不断加剧之势。中国本土的商业银行为了应对竞争，不断推出新产品，加快业务发展争夺市场。同时，商业银行也必须面对不断增长的各种风险的威胁。此外，国内监管与国际监管的接轨和新法规的实施，都使商业银行面临更多的法律和监管压力。因此，如何建立健全有效的欺诈风险管理机制成为中国银行业发展战略中的关键课题。在前不久中国银监会召开的大型银行监管工作电视电话会议上，中国银监会主席刘明康强调说：“大型银行与国际先进银行在内控有效性、风险管理水平、客户服务、产品创新等方面仍存在一定差距。”     

Triangulation of audit evidence in fraud risk assessments

Drawing on the triangulation framework of audit evidence ( and ), we experimentally test for the conditions, if any, under which financial-statement auditors alter their fraud-risk assessments based on whether external evidence provides positive or negative news about underlying business performance. We focus on the condition in which two kinds of management-controlled audit evidence – evidence from the financial statements and evidence from internal data depicting performance of a key business process – is contradicted by external evidence suggesting that a key business objective has not been attained. According to the triangulation framework, such contradictory external evidence should heighten auditors’ skepticism about the veracity of management-controlled evidence and increase their assessment of fraud risk.     

信用卡欺诈风险状况探析

随着我国信用卡业务的迅速发展和竞争的日趋激烈,各种专业信用卡诈骗集团、代办公司和套现公司等不断涌现,我国信用卡欺诈风险已进入多发、高发时期.本文就我国信用卡欺诈风险状况进行较深入的分析,并提出一些应对措施.     

商业汇票诈骗:业务成因与道德风险

商业汇票是一种常见的支付结算工具。商业汇票通常是由企业签发出票,分为银行承兑汇票和商业承兑汇票两种。银行承兑汇票是法人或其他组织(在银行开有账户)签发的,并由开户银行承兑付款的票据,付款人为企业开户银行;商业承兑汇票是由付款人(法人及其他组织)签发并承兑付款,也可由收款人签发交由付款人承兑付款的票据,付款人为承兑人。商业汇票除具有支付结算功能外,还具有流通手段、进行质押融资、充当信用工具等功能。随着我国市场经济的逐步深入,商业汇票因其方便、高效、安全等特点,已广泛地应用于商品流通、劳务、技术服务等交易活动及…     

从信用卡诈骗案件看信用卡风险防范

早在1995年,全国人大常委会<关于惩治金融秩序的犯罪分子的决定>中就将信用卡诈骗行为定义为独立犯罪,1997年修订<刑法>时,相关规定被纳入196条.     

The future of financial fraud

Is financial fraud becoming a bigger or smaller problem over time? Current empirical approaches to this question generate mixed inferences. As an alternative, I use two theoretical constructs that isolate several factors that motivate fraud, and use them to consider the impact of technological and wealth changes over time. Some changes, such as an increase in anonymity in some financial transactions, facilitate new fraud innovations and increase the possibility of fraud. The COVID-19 pandemic and resulting economic shutdown has fostered major disruptions in relative demands and organizational capital that also increase the likelihood of fraud over the next few years. Viewed over a longer time scale, however, the majority of technological and wealth changes seem likely to increase the use and effectiveness of reputational capital, third-party enforcement, and ethical motivations as fraud deterrents. I predict that, on net, these changes will drive a long-term decrease in the incidence of fraud.     

Effects of the fraud triangle on students’ risk assessments

This study is motivated by Bailey’s [Bailey, C. D. (2004). An unusual cash control procedure. Journal of Accounting Education, 22, 119–129]. A disappointing 89% of Bailey’s 502 students appear to have overestimated the risk of an asset misappropriation. This study presents the results of two quasi-experiments that test whether students’ risk assessments are affected by the type of model presented to them immediately preceding their risk assessments. One group was provided an overview of the widely used Committee of Sponsoring Organizations (COSO), Internal Control—Integrated Framework and the second group was provided a briefing on the Fraud Triangle, a model originally developed by criminologist, Donald R. Cressey (1973). As predicted, students who were provided an overview of the fraud triangle committed fewer Type I and Type II errors than students who were provided an overview of COSO. The results from this study contribute to the literature on risk assessment by demonstrating how the fraud triangle could, in some situations, lead to better risk assessments.     

警惕海外买壳上市骗局

目前,买壳上市呈现一种“多快好省”的大好局面,这里要提醒的是:海外买壳上市的确有着不为人所知的骗局。买壳上市到底成效如何?背后的陷阱是什么?本文将以赴美国上市为例,指出国内企业海外买壳上市的误区,揭开中介公司买壳上市的骗局,以期国内民营企业不再重蹈海外买壳上市之覆辙     

买方集团欺诈的贸易风险防范

中国信保专家提示相关出口企业,在同非洲新买家进行交易时,建议采用一些相对安全或风险小的付款方式,在相关业务出现风险异动信号时,立即暂停交易,并及时通报中国信保,尽快采取有效措施进行追讨减损,最大程度降低损失。     

A rule-based fuzzy reasoning system for assessing the risk of management fraud

Detecting management fraud and assessing the risk of management fraud are significant issues confronting the auditing profession. Considerable theoretical and empirical research (Loebbecke, Eining, and Willingham, 1989; Bell, Szykowny, and Willingham, 1993; Fanning, Cogger, and Srivastava, 1995; and Hansen, McDonald, Messier, and Bell, 1996) has been accomplished investigating these issues. Building on this research, we demonstrate the construction of a rule-based fuzzy reasoning system to assess the risk of management fraud. The paper illustrates how fuzzy sets can be used intuitively to measure red flags on a categorical or interval scale, how different red flags can be combined using fuzzy rules, and how a single measure of the risk of management fraud can be derived. The knowledge base for this fuzzy reasoning system is developed by using the causal model of management fraud developed by Loebbecke, Eining and Willingham (1989), the empirical investigation of this model by Bell, Szykowny, and Willingham (1993), other researchers’ efforts and the authors’ judgments, using XpertRule software. The fuzzy reasoning system is tested using the fraud data provided by KPMG Peat Marwick. We discuss methods to magnify the knowledge base of this fuzzy reasoning system to make it a viable auditing tool, the costs and benefits of building a fuzzy reasoning system, and further extensions of this research. Copyright © 1998 John Wiley & Sons, Ltd.     

头脑风暴技术在舞弊审计中的应用

头脑风暴技术得到了审计职业界的重视,并将其作为一项重要的舞弊风险应对措施加以实施和推广2002年美国审计准则委员会(ASB)修订实施的审计准则(SAS No.99,109)要求审计项目组每次审计都必须执行头脑风暴项目组讨论会,针对客户财务报表可能存在的舞弊行为交换看法,准则制定者认为头脑风暴法作为一种改善审计人员舞弊判断质量的工具,有助于审计人员发现可能存在的舞弊行为。大量的国外审计实践和研究表明,头脑风暴技术在舞弊风险因素识别、舞弊风险评估和舞弊风险应对方面效果都优于审计人员个体判断和决策。     

信用卡欺诈风险透析与防范机制

近年来,国内信用卡业务蓬勃发展,发卡量激增.在高速发展的同时,信用卡业务的风险也日益显现,信用卡欺诈案件呈不断攀升的趋势.如何在业务快速发展的同时控制风险,防止因信用卡欺诈而给持卡人、商业银行和整个社会带来危害,是发卡银行面临的一个十分严峻的问题.商业银行迫切需要建立起有效的信用卡欺诈风险防范机制.     

计算机设备冗余电源使用风险分析

目前,数据安全性和系统稳定性的要求越来越高,因此服务器电源要具有很高的可靠性。高端计算机设备多采用冗余电源技术,它具有均流、故障切换等功能,可以有效避免电源故障对系统的影响,实现连续运行,提高了设备的安全特性。但计算机设备冗余电源在实际使用中也存在着一定的风险需引起重视。     

The effects of tone at the top and coordination with external auditors on internal auditors’ fraud risk assessments

Prior research suggests that internal auditors’ judgements are subject to management influence resulting in compromised risk assessments. This study investigates the effects of the tone at the top and coordination with external auditors on internal auditors’ fraud risk assessments. Results of an experiment involving 64 internal auditors indicate that when the tone at the top is poor, rather than favouring management, internal auditors report a higher risk of intentional misstatements and that coordination with external auditors can further reduce expectations of the incidence of intentional misstatements.