USF St. Petersburg campus Faculty Publications

Accountants' perceptions regarding fraud detection and prevention methods

SelectedWorks Author Profiles:

Carl J. Pacini

Document Type

Article

Publication Date

2006

ISSN

0268-6902

Abstract

Purpose : The purpose of this study is to examine the extent to which accountants, internal auditors, and certified fraud examiners use fraud prevention and detection methods, and their perceptions regarding the effectiveness of these methods. Design/methodology/approach : A survey was administered to 86 accountants, internal auditors and certified fraud examiners. Findings : The results indicate that firewalls, virus and password protection, and internal control review and improvement are quite commonly used to combat fraud. However, discovery sampling, data mining, forensic accountants, and digital analysis software are not often used, despite receiving high ratings of effectiveness. In particular, organizational use of forensic accountants and digital analysis were the least often used of any anti-fraud method but had the highest mean effectiveness ratings. The lack of use of these highly effective methods may be driven by lack of firm resources. Practical implications : Organizations should consider the cost/benefit tradeoff in investing in highly effective but potentially underutilized methods to prevent or detect fraud. While the costs may seem prohibitive for small organizations, substantial cost savings from reduced fraud losses may also be significant. Originality/value : By identifying methods that work well for fraud detection and prevention, prescriptive information can be provided to accounting practitioners, internal auditors, and fraud examiners.

Comments

Abstract only. Full-text article is available only through licensed access provided by the publisher. Published in Managerial Auditing Journal, 21(5), 520-535. Members of the USF System may access the full-text of the article through the authenticated link provided.

Language

en_US

Publisher

Emerald Group Publishing Ltd.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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