Download or read book The Impact of Tax Services on Auditors Fraud Risk Assessments written by Michael Favere-Marchesi and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examined whether providing tax services to an audit client affects auditors' fraud-risk assessment. A case was administered to audit partners and senior managers of small and medium-sized firms that provide both audit and tax services. Participants were asked to assess the risk of fraudulent financial reporting for a hypothetical audit client. The provision of tax services and the size of the client fees in relation to the audit partner's annual billings were varied and participants randomly assigned to three experimental conditions.Consistent with expectations, auditors whose firm also provided tax services to the audit client reported a significantly lower fraud-risk assessment than auditors whose firm provided no tax services to the audit client. Further, with the provision of tax services to the audit client, auditors' fraud-risk assessment was inversely related to the relative size of the client fees.

Download or read book Risk Based Tax Audits written by Munawer Sultan Khwaja and published by World Bank Publications. This book was released on 2011-06-08 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Revenue administration is a major interface between the state and its citizens. A good revenue administration is, therefore, an important attribute of good government. As a result, in recent years, policy makers have become increasingly aware of the importance of policies that will promote business development while ensuring voluntary tax compliance. In the modern context, it is neither desirable nor feasible to examine or inspect every single taxpayer. The revenue administration, therefore, has to rely on effective management of compliance. Promoting voluntary compliance, achieved through a self-assessment system in which taxpayers comply with their tax obligations without intervention from tax officials, requires developing modern approaches to audits based on risk management. The impact of audits critically depends on a properly designed audit selection strategy focused on high-risk taxpayers to provide the most cost-effective outcome. This, in itself, contributes to promoting voluntary compliance. Risk-based country audits: approaches and country experiences are an important study of this critical revenue function of compliance management."--Publisher's website.

Download or read book The Impact of Assessment Procedures and Need for Cognition on Fraud Risk Assessments written by Pailin Trongmateerut and published by . This book was released on 2011 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effects of Fraud and Going Concern Risk on Auditors Assessments of the Risk of Material Misstatement and Resulting Audit Procedures written by Allen D. Blay and published by . This book was released on 2007 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study uses audit file data to analyze the association between the auditors' preliminary assessments of going-concern and fraud risk and the planning and performance of the financial statement audit. We analyze the association between the above risks and the auditor's assessment of the risk of material misstatement (RMM) within the revenue cycle, and examine whether going-concern and fraud risk assessments have an effect on the persuasiveness, timing and extent of audit evidence gathered. Our results indicate that both fraud risk and going-concern risk are significantly related to RMM. Our results also indicate that although the effect of fraud risk is fully mediated by the RMM, moderate going-concern risk remains significantly related to our proxies for the persuasiveness and timing of audit evidence, even after controlling for RMM.

Download or read book The Influence of Documentation Specificity and Priming on Auditors Fraud Risk Assessments and Evidence Evaluation Decisions written by Jacqueline S. Hammersley and published by . This book was released on 2009 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Public Company Accounting Oversight Board (PCAOB) recently suggested that auditors' lack of specific fraud planning documentation has led auditors to devote insufficient attention to fraud risks in subsequent audit work. Guided by Support Theory, we experimentally investigate how the specificity of fraud risk documentation during audit planning influences auditors' subsequent audit work. We also examine the effect of priming auditors about the fraud risks identified during planning before they begin subsequent evidence evaluation. We find that auditors' planning stage efforts do affect subsequent fraud risk assessments and evidence evaluation decisions. Unprimed auditors who receive more specific documentation increase their fraud risk assessments and evidence requests. Priming's effects are more complex. Priming auditors who receive summary documentation also increases fraud risk assessments and evidence requests; however, priming auditors who receive specific documentation reduces these judgments because the priming makes the client-specific risks seem less typical. Accordingly, the PCAOB's call for more documentation can have the unintended consequence of reducing auditors' sensitivity to fraud.

Download or read book Advances in Accounting written by Philip M J Reckers and published by Elsevier. This book was released on 2006-07-04 with total page 287 pages. Available in PDF, EPUB and Kindle. Book excerpt: The twenty-second volume of Advances in Accounting continues to provide an important forum for discourse among and between academic and practicing accountants on issues of significance to the future of the discipline. Emphasis continues to be placed on original commentary, critical analysis and creative research – research that promises to substantively advance our understanding of financial markets, behavioral phenomenon and regulatory policy. Technology and aggressive global competition have propelled tremendous changes over the two decades since AIA was founded. A wide array of unsolved questions continues to plague a profession under fire in the aftermath of one financial debacle after another and grabbling with the advent of international accounting standards. This volume of Advances in Accounting not surprisingly includes several articles reflective on auditor independence, auditor tenure, auditor rotation and non-audit service fees. This volume also looks at challenges facing the academic community with respect to pressures placed on faculty to publish; a data driven commentary is provided by the in-coming editor of the European Accounting Review. Other papers examine the use of financial data to estimate risk premiums, and measure the operating efficiency of firms; and re-examine market reaction to quarterly earnings. AIA continues its commitment to the global arena by publishing several papers with an international perspective. As never before the accounting profession is seeking ways to reinvent itself and recapture relevance and credibility. AIA likewise continues to champion forward thinking research.*Addresses the role of the auditor*Investigates how financial data is represented, used, and received*Scope of content is international

Download or read book Fraud Risk Assessment written by Leonard W. Vona and published by Wiley. This book was released on 2008-04-25 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Providing a comprehensive framework for building an effective fraud prevention model, Fraud Risk Assessment: Building a Fraud Audit Program presents a readable overview for developing fraud audit procedures and building controls that successfully minimize fraud. An invaluable reference for auditors, fraud examiners, investigators, CFOs, controllers, corporate attorneys, and accountants, this book helps business leaders respond to the risk of asset misappropriation fraud and uncover fraud in core business systems.

Download or read book The Effects of Contrasts in Account level Fraud Risk Assessments on Auditors Evidence Evaluation written by Grace Ngonidzashe Mubako and published by . This book was released on 2012 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evidence from research in psychology and auditor judgment has shown that perceptions that form early in a sequential judgment process can influence subsequent judgments. Auditing Standard 12 requires auditors to identify fraud risk factors and assess the risk of fraud as part of the process of assessing overall misstatement risk. While it is expected that fraud risk assessments should have a bearing on overall risk assessments, it is possible that perceptions formed from assessments of fraud risk can negatively affect the evaluation of any evidence reviewed thereafter. Because different classes of transactions may be affected by fraud risk factors in different ways, fraud risk assessments may differ across classes of transactions. These differences may make subsequent auditor judgments susceptible to the contrast effects bias, where subjects overreact to the differences such that the fraud risk assessments influence auditor judgment more than they should. This study examines whether auditors who learn that fraud risk is low for one class of transactions immediately after examining a class of transactions that has high fraud risk, can overreact to the contrast such that they reduce their sensitivity to evidence that suggests increased misstatement risk. The study also examines whether these contrast effects can be mitigated by acquiring information about fraud risk assessments later in the sequence of evidence, after auditors have reviewed and assimilated evidence related to other risks. The study finds that, as predicted, auditor judgments are influenced by contrast effects. Auditors who examined classes of accounts for which fraud risk assessments were different were less sensitive to evidence suggesting increased risk in accounts that had been identified as having low fraud risk. However, contrary to predictions, these contrast effects were not mitigated by evidence order.

Download or read book PPC s Guide to Fraud Risk Assessment Implementing SAS 99 and Related Guidance written by Practitioners Publishing Co. Staff and published by . This book was released on 2004-05-01 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "If you provide audit services, you need this guide! This Guide provides an important new auditing standard in the accounting profession's efforts to help restore confidence in the nation's capital markete. This Guide has been."

Download or read book The Effect of Fraud Risk Assessment on Auditor s Fraud Judgment and Audit Plans written by Gabriel Uyumaz and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Government Auditing Standards 2018 Revision written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.

Download or read book Auditors Reactions to Inconsistencies Between Financial and Nonfinancial Measures written by Joseph F. Brazel and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Nonfinancial measures (NFMs), such as employee headcount and production space, are operational measures that are not included on the face of the financial statements but are often disclosed elsewhere in the annual report or 10-K (e.g., in Management's Discussion and Analysis). Professional standards, auditing texts, and prior research suggest that external auditors can use NFMs to verify their clients' reported financial information and, in turn, improve audit quality. In an initial experiment where auditors develop an expectation for a client's sales balance, they generally fail to identify a seeded inconsistency between the client's sales and related NFMs. In our second experiment, where we introduce an NFM prompt and manipulate fraud risk as high and low, auditors are more likely to react to the inconsistency (i.e., rely more on inconsistent NFMs/develop expectations that reflect the client's current year decline in NFMs) when they are specifically prompted to consider the implications of NFMs and fraud risk is high (vs. low). Our results suggest the following: (1) a minority of auditors use NFMs as an information source for testing and do not increase their reliance on NFMs when the NFMs point to a fraud red flag; (2) the presence of high fraud risk alone is insufficient to increase auditor consideration of inconsistent NFMs; (3) auditors are able to react appropriately to an inconsistency if they are effectively prompted; and (4) the influence of a prompt on auditor reliance on NFMs and account balance expectations is stronger when fraud risk is assessed as high.

Download or read book How Trust Underpins Auditor Fraud Risk Assessments written by Jose R. Hernandez and published by . This book was released on 2007 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Investigation of Tax Risk Disclosures and Estimation Uncertainty in Securities and Exchange Commission Annual Reports written by Zhuoli Zhou Axelton and published by . This book was released on 2021 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation investigates the incremental effects of uncertain disclosure narratives in annual filings of public companies. In the first essay, I investigate the effects of Form 10-K qualitative tax risk disclosures on the prices of syndicated loans. I find that firms with more extensive tax risk disclosures enjoy lower loan spreads. This effect is more pronounced among firms with higher IRS audit risk and information risk. I also find that tax risk disclosures convey managements' ability to manage tax risks, as evidenced by lower future tax volatility following the initiation of extensive tax risk disclosures. Consistent with tax risk disclosures enhancing management credibility and providing greater assurance to lenders, I document that these disclosures attenuate the association between tax risk and the cost of debt. My second essay focuses on auditor decisions related to estimation uncertainty in financial reporting. I construct a composite measure of estimation uncertainty that captures the length, the number of estimation-related words, and topical coverage in the critical accounting policies and estimates (CAPEs) portion of Form 10-K filings. I validate this measure by demonstrating its association with earnings attributes linked to measurement uncertainty and lower accrual reliability. Relying on this measure, I investigate the extent that auditors incorporate estimation uncertainty reflected in CAPEs in their risk assessments. I find that auditors charge higher audit fees, take longer to issue audit reports, and are more likely to issue modified audit opinions when CAPE estimation uncertainty is higher. These results are robust to entropy balancing, year-to-year change analysis, and controls for firm fixed effects. When I focus on tax and goodwill estimation uncertainty, I document that estimation uncertainty reflected in CAPEs has incremental effects beyond existing measures of estimates reported in financial statements. I demonstrate the positive association between CAPE estimation uncertainty and the textual properties of critical audit matter (CAM) disclosures, which supports the view that auditors incorporate estimation uncertainty reflected in CAPEs in their risk assessments.

Download or read book The Effect of Fraud Assessment Documentation Structure on Auditors Ability to Identify Control Weaknesses written by Christopher P. Agoglia and published by . This book was released on 2007 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: The current regulatory environment, brought on by recent high-profile audit failures, expands the auditor's role in detecting fraud. For example, auditors must now provide an opinion on clients' internal controls, addressing their effectiveness at preventing or detecting fraud. While the structure of workpaper documentation has been shown to affect audit workpaper preparers' assessments of overall fraud risk, prior research has not addressed the role their reviewers' experience plays in mitigating documentation structure effects. Our study matches audit workpaper preparers with reviewers to investigate whether reviewer task-specific experience moderates the effect of fraud assessment documentation structure on the audit review team's ability to identify the presence of significant control weaknesses. Consistent with expectations, we find that preparers who are required to document components of their fraud assessments inappropriately provided more favorable (and lower quality) assessments of significant control weaknesses than those using either a supporting or balanced documentation structure. More importantly, results indicate that reviewer task-specific experience moderated the effect of documentation structure on reviewers' identification of control weaknesses such that experienced reviewers compensated more for the effect of component documentation than reviewers with less experience. These results suggest that reviewer task-specific experience may help reduce the previously observed quot;flow-throughquot; effect of preparer workpaper deficiencies on reviewer judgments and provide support for new regulations emphasizing the role of experience during the control assessment process.

Download or read book Resolving Tax Related Fraud and Malfeasance with Forensic Audit written by Newman Enyioko and published by . This book was released on 2020-03-06 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2020 in the subject Business economics - Accounting and Taxes, grade: 4.0, course: Accounting, language: English, abstract: This work is a theoretical study on the application of forensic audit and investigation in resolving tax related fraud and malfeasance. The work aims to examine the application of forensic audit and investigation in combating fraudulent activities in corporate organization, to determine the characteristics required by forensic auditors as to combat fraudulent activities and to differentiate between forensic auditor and financial auditor. Based on the findings, this work concludes that forensic auditing has improved management accountability, strengthened external auditor's independence and assisting audit committee members in carrying out their oversight function by providing them assurance on internal audit. Therefore, the study recommends that the service of forensic auditors should be employed in Nigerian organisations.

Download or read book Standards for Internal Control in the Federal Government written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policymakers and program managers are continually seeking ways to improve accountability in achieving an entity's mission. A key factor in improving accountability in achieving an entity's mission is to implement an effective internal control system. An effective internal control system helps an entity adapt to shifting environments, evolving demands, changing risks, and new priorities. As programs change and entities strive to improve operational processes and implement new technology, management continually evaluates its internal control system so that it is effective and updated when necessary. Section 3512 (c) and (d) of Title 31 of the United States Code (commonly known as the Federal Managers' Financial Integrity Act (FMFIA)) requires the Comptroller General to issue standards for internal control in the federal government.