（2005）Auditor Identification of Fraud Risk Factors and their Impact on Audit Programs.pdfVIP

Blackwell Publishing Ltd.Oxford, UK and Malden, USAIJAUInternational Journal of Auditing1090Blackwell Publishing Ltd.March 2005915977Original Articles Auditor Identification of Fraud Risk Factors and their Impact on Audit ProgramsT. J. Mock and J. L. Turner International Journal of Auditing Int. J. Audit. 9: 59–77 (2005) Auditor Identification of Fraud Risk Factors and their Impact on Audit Programs Theodore J. Mock1 and Jerry L. Turner2 1 University of Southern California 2 The University of Memphis Using a sample of 202 audit clients obtained from three large audit firms, this study investigates actual fraud risk assessments and their effects on audit programs following the issuance of SAS No. 82, Consideration of Fraud in a Financial Statement Audit. Over two years of audits, we find that the number and type of fraud risk factors identified differs across clients, industries, and fraud risk categories. Additionally, for 20 percent of year one and 31 percent of year two audits examined, we find that auditors modified the nature, extent and/or timing of audit procedures, assigned more experienced audit team