Tax Professionals' Responsibility for Fraud Detection: The Effects of Engagement Type and Audit Status

DeZoort, F. Todd; Harrison, Paul; Schnee, Edward J.

doi:10.2308/acch-50137

Cited by 14 publications

(3 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Again, involvement of judiciary respondents increases the reliability of the forensic auditing report as a litigation support service. Drawing inspiration from DeZoort and Harrison (2018), a perception survey was adopted since it enables the identification of gap between the theory and practice and also encourages open communication among various stakeholders. To ensure that sincere response is obtained from the participants, respondents in the four categories provided no personal information and were given assurance that no effort would be made to link them to their responses.…”

Section: Methodsmentioning

confidence: 99%

Forensic auditing mechanism and fraud detection: the case of Nigerian public sector

Oluwagbemiga

2021

JAEE

View full text Add to dashboard Cite

PurposeThis study investigates the perception of professionals in the field of accounting, and those associated with forensic auditing, about the knowledge and skills, experience and technique that a forensic auditor should possess to provide high-quality services in fraud detection. The study also shows the impact of forensic auditing tools on fraud detection.Design/methodology/approachWith the use of a self-administered questionnaire, the study adopts a survey design in which 298 respondents participated. Data were subjected to descriptive statistics (ranking, mean and standard deviation), inferential statistics (binary logistic regression and ordinary least square regression).FindingsThe findings indicate that adequate knowledge of economic damage calculation and financial statement valuation is essential for forensic auditors' service. The results also reveal that forensic auditor skills and techniques is a significant predictor for fraud detection in the Nigerian public sector.Practical implicationsThe paper draws attention of the federal government parastatals to the need to improve their internal control system to reduce the fraudulent practices in their parastatal. The study also draws the attention of the Nigeria University Commission and the Institute of Chartered Accountants of Nigeria on the needs for revision of the accounting curricular for the training of accounting graduates and professional accountants in Nigeria.Social implicationsThe paper is of importance to other developing nation as it provides empirical evidence on the needs to do periodic forensic audits of government corporations.Originality/valueWith the persistent increase in the number of fraudulent cases, current views of those associated with forensic auditing (judiciaries, parastatals, forensic auditors and academics) on mechanisms for timely detection of fraud are needed.

show abstract

Section: Methodsmentioning

confidence: 99%

Forensic auditing mechanism and fraud detection: the case of Nigerian public sector

Oluwagbemiga

2021

JAEE

View full text Add to dashboard Cite

show abstract

“…To the extent tax practitioners' views differ from auditors' perceptions of PS, there could be a mismatch of expectations when conducting audits with tax specialists. In addition, recent studies discuss the importance of PS for tax professionals being alert to potential for tax fraud (DeZoort, Harrison, & Schnee, 2012;Barker & Frederick, 2016).…”

Section: Tax Practitionersmentioning

confidence: 99%

Professional Skepticism: Practitioners’ Perceptions And Training Practices

Gissel

2018

RBIS

View full text Add to dashboard Cite

While regulators criticize auditors for lacking appropriate professional skepticism (SEC, 2010, 2013; PCAOB, 2012), auditing standards lack a clear, consistent definition (Nelson, 2009; Hurtt, Brown-Liburd, Earley, & Krishnamoorthy, 2013), leaving application of professional skepticism “open to interpretation” (Glover & Prawitt, 2013, p. 2). If individual auditors view professional skepticism as open to interpretation (i.e., subjective), auditors may believe they are appropriately applying standards on professional skepticism based on their individual interpretations. However, if regulators apply a different definition of professional skepticism when reviewing auditors’ work, this may help explain ongoing criticisms from regulators stating auditors lack appropriate professional skepticism. The author reports insights of 66 auditors’ perceptions and finds the majority believe professional skepticism has a subjective (as opposed to uniform) definition. This finding is consistent across auditor rank and firm size, suggesting the potential for variations in application of professional skepticism in practice. Supplemental analyses indicate tax practitioners are more likely than auditors to view professional skepticism as subjective, particularly at the partner rank. The author presents professional skepticism training practices for 25 firms that suggest most firms recognize the importance of professional skepticism training and its regular reinforcement. However, there are concerns surrounding the fact that mentoring is listed as the most common training method, which lacks benefits of more formal training activities. Overall, this study provides relevant insights from practitioners and strengthens recent calls for developing a “common definition and shared understanding” of professional skepticism and a framework for evaluating application of professional skepticism (Glover & Prawitt, 2014, p. 5-6).

show abstract

“…Tax report the ability some coun assessmen literature r reporting i personal in Figure 2 Therefore, the possible reason for such a gap between statutory tax rate and effective tax rate among business tax payers is the possibility that there are criminal fraud activities occurring in the business organizations (DeZoort, Harrison, & Schnee, 2012). The criminal fraud activity can be related to the existing gap because it is common knowledge that tax payers will try to reduce their tax burden when they feel the statutory tax rate is too high to bear.…”

Section: Theorymentioning

confidence: 99%

The Red Flags of Tax Reporting on the Market Value

Rashid¹,

Noor²,

Matsuski³

et al. 2014

IBR

View full text Add to dashboard Cite

The aim of this paper is to provide empirical evidence of the red flags in the level of tax reporting among the Shariah Compliance companies in Bursa Malaysia. The convenience sampling method was employed among 123 Shariah compliance companies of Bursa Malaysia. Meanwhile, the investigation period in this study had covered twelve years of continuous data, starting from the year 2001 until the year 2012. This study adopted the Current Based Model to calculate the level of Effective Tax Rate (ETR) as an independent variable while the firm values as dependent variable. It was revealed that due to the Creative Accounting strategies, there is a possibility of tax fraud occurring during the calculation of taxation level. These activities, which were applied in implementing tax planning mechanisms is however allowed by the GAAP under MFRS. As is commonly known, the purpose of tax reporting is to safeguard the interest of potential shareholders; however, these practices of aggressive tax planning strategies will result in differing perceptions from tax payers' and potential shareholders' perspectives. Therefore, aggressive tax planning strategies could be a red flag to financial fraud activities. Thus, this study would disclose some evidence on how financial fraud could be revealed from tax reporting strategies.

show abstract

Tax Professionals' Responsibility for Fraud Detection: The Effects of Engagement Type and Audit Status

Cited by 14 publications

References 31 publications

Forensic auditing mechanism and fraud detection: the case of Nigerian public sector

Forensic auditing mechanism and fraud detection: the case of Nigerian public sector

Professional Skepticism: Practitioners’ Perceptions And Training Practices

The Red Flags of Tax Reporting on the Market Value

Contact Info

Product

Resources

About