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Article
Accountants' perceptions regarding fraud detection and prevention methods
Faculty Publications
  • James L. Bierstaker
  • Richard G. Brody
  • Carl J. Pacini
SelectedWorks Author Profiles:
Carl J. Pacini
Document Type
Article
Publication Date
2006
Date Issued
January 2006
Date Available
April 2014
Disciplines
Abstract
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 indicate that firewalls, virus and password protection, and internal control review and improvement are quite commonly used to combat fraud. However, discovery sampling, data mining, forensic accountants, and digital analysis software are not often used, despite receiving high ratings of effectiveness. In particular, organizational use of forensic accountants and digital analysis were the least often used of any anti-fraud method but had the highest mean effectiveness ratings. The lack of use of these highly effective methods may be driven by lack of firm resources. Practical implications : Organizations should consider the cost/benefit tradeoff in investing in highly effective but potentially underutilized methods to prevent or detect fraud. While the costs may seem prohibitive for small organizations, substantial cost savings from reduced fraud losses may also be significant. Originality/value : By identifying methods that work well for fraud detection and prevention, prescriptive information can be provided to accounting practitioners, internal auditors, and fraud examiners.
Comments
Abstract only. Full-text article is available only through licensed access provided by the publisher. Published in Managerial Auditing Journal, 21(5), 520-535. Members of the USF System may access the full-text of the article through the authenticated link provided.
Language
en_US
Publisher
Emerald Group Publishing Ltd.
Creative Commons License
Creative Commons Attribution-Noncommercial-No Derivative Works 4.0
Citation Information
Bierstaker, J.L., Brody, R.G. & Pacini, C. (2006). Accountants' perceptions regarding fraud detection and prevention methods. Managerial Auditing Journal, 21(5), 520-535.