SAS 99 consideration of fraud in a financial statement audit: a new auditing standard

Application of Fuzzy Logic to Fraud Detection

for management override of controls. Auditors are discouraged from placing too much reliance on client representation and are required to maintain a skeptical attitude throughout the audit. The standard encourages auditors to engage in frequent discussion among engagement personnel regarding the risk of material misstatement due to fraud. SAS 99 also requires auditors to inquire of management a...

An Analysis of the Fraud Triangle

The concept of a “Fraud Triangle” is introduced to the professional literature in SAS No. 99, Consideration of Fraud in a Financial Statement Audit. The Fraud Triangle consists of three conditions generally present when fraud occurs: Incentive/Pressure, Opportunity, and Attitude/ Rationalizations. Input from forensic experts, academics and others consistently show that evaluation of information...

Statement of Auditing Standards 110 the Auditors' Responsibility to Consider Fraud and Error in an Audit of Financial Statements

Multinomial and ordinal logistic regression using PROC LOGISTIC

Logistic regression may be useful when we are trying to model a categorical dependent variable (DV) as a function of one or more independent variables. This paper reviews the case when the DV has more than two levels, either ordered or not, gives and explains SAS R © code for these methods, and illustrates them with examples.

The Dempster-Shafer Theory of Belief Functions for Managing Uncertainties: An Introduction and Fraud Risk Assessment Illustration

The main purpose of this paper is to introduce the Dempster-Shafer theory (“DS” theory) of belief functions for managing uncertainties, specifically in the auditing and information systems domains. We illustrate the use of DS theory by deriving a fraud risk assessment formula for a simplified version of a model developed by Srivastava, Mock, and Turner (2007). In our formulation, fraud risk is ...