Publication Type

Journal Article

Version

acceptedVersion

Publication Date

3-2009

Abstract

This paper investigates the effects of technical knowledge and decision aid use on financial statement fraud risk assessments made by directors and students. More extreme fraud risk assessments are made when participants identify and process larger (smaller) numbers of diagnostic (non-diagnostic) factors, with technical knowledge driving diagnostic factor identification. Significant decision aid-technical knowledge effects are also found; decision aid use has a detrimental effect on high-knowledge directors while improving performance in inexperienced, low-knowledge students. These results suggest that although decision aids can afford gains in performance in inexperienced users, they can have unintended and/or paradoxical behavioural effects on experienced users.

Keywords

Fraud risk assessments, directors, technical, knowledge, decision aids

Discipline

Accounting | Corporate Finance

Research Areas

Corporate Reporting and Disclosure

Publication

Accounting and Finance

Volume

49

Issue

1

First Page

183

Last Page

205

ISSN

0810-5391

Identifier

10.1111/j.1467-629X.2008.00268.x

Publisher

Wiley

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1111/j.1467-629X.2008.00268.x

Share

COinS