（2008）Financial Statement Fraud：Insights from the Academic Literature.pdfVIP

Auditing: A Journal of Practice Theory American Accounting Association Vol. 27, No. 2 DOI: 10.2308/aud.20031 November 2008 pp. 231–252 Financial Statement Fraud: Insights from the Academic Literature Chris E. Hogan, Zabihollah Rezaee, Richard A. Riley, Jr., and Uma K. Velury SUMMARY: We summarize relevant academic research findings to contribute to the Public Company Accounting Oversight Board PCAOB project on financial statement fraud and to offer insights and conclusions relevant to academics, standard setters, and practitioners. We discuss the characteristics of firms committing financial statement fraud, as identified in the literature, and research related to the fraud triangle. We then discuss research related to the procedures and abilities of auditors to detect fraud, and how fraud risk assessments impact audit planning and testing. In addition, we discuss several “high risk” areas and other issues as identified by the PCAOB. Finally, we summarize prior findings and offer conclusions and suggestions for areas where future research is needed. Keywords: financial statement fraud; fraud detection; fraud triangle; audit procedures; audit planning; high-risk audit areas. INTRODUCTION To facilitate the development of auditing standards and to inform regulators of insights from the academic auditing literature, the Auditing Section of the American Accounting Association AAA has decided to develop a series of literature syntheses for the Public Company Accounting Oversight Board PCAOB. This paper synthesizes and discusses implications of academic