Document Type

Article

Publication Date

2010

Abstract

The purpose of this paper is to investigate how the brainstorming component of Statement of Auditing Standards (SAS) No. 99 influences decision aid use and reliance, and the effectiveness of fraud risk assessment. The research framework links the influences of the fraud assessment setting and decision aid reliance. The hypotheses are tested in an experiment with two manipulated factors: setting (group or individual) and decision aid (provided or not provided). The results of the study provide insight on how the brainstorming impacts fraud risk assessment, decision aid use and decision aid reliance. The results show that groups using a decision aid with fraud risk factors demonstrate superior decision quality and effectiveness even with lower decision aid reliance. The influence of the setting (group or individual) on the fraud evaluation and detection is highlighted. This paper will be informative for auditors and firms involved in designing an efficient and effective fraud risk assessment. This paper integrates the fraud risk assessment and decision aid literature to evaluate decision quality and effectiveness of group fraud risk assessment.

Comments

This article was originally published in Management Research Review 33(3). View the article online at: http://www.emeraldinsight.com/journals.htm?articleid=1852916

Publication Title

Management Research Review

ISSN

2040-8269

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