This paper investigates how fraud schemes can be integrated into the fraud risk assessment process and be incorporated into audit planning. A framework for assessing fraud risk using an evidential reasoning approach based on the belief-function formalism was developed in this paper. The framework extends fraud risk assessment models in prior fraud research in three respects. First, it integrate...

We try to present a first broad overview on data fraud, and give hints to data fraud detection (DFD). Especially, we show examples of data fraud that happened at anytime of human mankind, all around the world, and affects all kind of human activities. For instance, betrayers are entities of the society, industry, banks, services, health-care, non-profit organizations, art, science, media or eve...

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 ...

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 indica...

Article history: Received 26 May 2011 Received in revised form 5 March 2012 Accepted 6 March 2012 Current auditing standards require auditors to conduct a fraud brainstorming session aimed at considering ways in which the audit client's financial statements might be fraudulently misstated. Lynch et al. (2009) document that computer-mediated fraud brainstorming is significantly more effective th...

INTRODUCTION The 2008 Report to the Nation issued by the Association of Certified Fraud Examiners indicated that U.S. organizations lose almost 7 percent of their revenue to fraud, and that the Gross Domestic Product (GDP)-based annual fraud estimate for the United States alone was $994 billion (ACFE, 2008). Of course, we all now recognize that the scourge of fraud is a global phenomenon that e...

We expand accounting research on fraud by categorizing and analyzing fraudulent acts in virtual worlds. Virtual worlds are computer-generated, immersive environments where players control a character, an avatar, to interact with others online while engaging in social, entertainment, educational, and commercial endeavors. Virtual worlds include unique capabilities such as anonymous interaction t...

Most research on Internet auction fraud focuses exclusively on the relationship between the con-artist and victim. However, the con-artist and victim are situated in an ecology comprising the auction house, police, and auction community. This paper employs the ‘parasite’ metaphor as a way of building theory about Internet auction fraud. We begin by describing the parasite metaphor. We then intr...

We describe a common but poorly known type of fraud – so-called liar buyer fraud – and explain why traditional anti-fraud technology has failed to curb this problem. We then introduce a counter-intuitive technique based on user interface modification to address liar-buyer fraud, and report result of experiments supporting that our technique has the potential of dramatically reducing fraud losse...