An empirical analysis of the likelihood of detecting fraud in New Zealand

Stephen OwusuAnsah, Glen David Moyes, Peter Babangida Oyelere, David Hay

Research output: Contribution to journalArticlepeer-review

32 Citations (Scopus)

Abstract

This paper reports on the perceived effectiveness of 56 frauddetecting audit procedures used in the stock and warehousing cycle, and the factors that influence the likelihood of detecting fraud in this transaction cycle in New Zealand. We surveyed New Zealand auditors to ascertain their opinion on the effectiveness of these audit procedures. While respondents perceive less than half of the 56 audit procedures as being “more effective” in detecting fraud, more than half are perceived as “moderately effective”. A total of 15 audit procedures are perceived as being “less effective” in detecting fraud. The perceptions of respondents are not affected by the location of their employers in New Zealand, and the type of audit firm employing them. A logit regression analysis suggests that size of audit firm, auditor's position tenure, and auditor's years of experience are statistically significant predictors of the likelihood of detecting fraud in the stock and warehousing cycle.

Original languageEnglish
Pages (from-to)192-204
Number of pages13
JournalManagerial Auditing Journal
Volume17
Issue number4
DOIs
Publication statusPublished - Jun 1 2002
Externally publishedYes

Keywords

  • Audit
  • Fraud
  • Stock
  • Warehousing

ASJC Scopus subject areas

  • Accounting
  • General Business,Management and Accounting
  • General Economics,Econometrics and Finance

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