Fraud Specialists On Independent Audits

Big Five Audits and Accounting Fraud

Empirical studies of earnings management, audit pricing, and audit reporting provide extensive evidence that the Big Five public accounting firms are associated with higher quality financial statements (Francis 2004). Nevertheless, the recent high-profile financial reporting failures that roiled the U.S. capital markets cast doubt on whether this proposition remains valid. Indeed, many commenta...

Policy on Third-Party Payor Audits, Abuse, and Fraud.

Bayesian Fraud Risk Formula for Financial Statement Audits

Voluntary Audits versus Mandatory Audits

Exploiting a natural experiment in which voluntary audits replace mandatory audits for U.K. private companies, we analyze whether imposing audits suppresses valuable information about the types of companies that would voluntarily choose to be audited. We control for the assurance benefits of auditing to isolate the role signaling plays by focusing on companies that are audited under both regime...

US Inspector General recoups millions in audits, fraud, and abuse investigations.

Fraud and abuse investigations by the office of the Inspector General resulted in payments totaling $407.7 million. Audits by the same agency identified $251.5 million in items such as overpayments, according to the agency’s mid-year fiscal year 1999 report. As a result of its findings, the Inspector General recommended exclusion of 2976 individuals or entities from government programs such as ...