TY - JOUR
T1 - Fraud risk assessment
T2 - a story based approach outperforms the checklist
AU - Bierstaker, James L.
AU - Downey, Denise Hanes
AU - Rose, Jacob M.
AU - Thibodeau, Jay C.
N1 - Publisher Copyright:
© 2022, American Accounting Association. All rights reserved.
PY - 2022
Y1 - 2022
N2 - Bierstaker, Hanes-Downey, Rose, and Thibodeau (2018) investigate whether using a fraud story (a one-page summary of the key facts in an SEC AAER written as a narrative) as compared to a traditional checklist improves fraud risk assessments in two separate experiments. This article summarizes their findings and discusses practical implications and actionable suggestions for audit practitioners. Specifically, the summary focuses on the capacity of fraud stories to help novice auditors develop knowledge structures that closely resemble the knowledge structures of experts and ultimately to improve experienced auditors’ risk assessments. Importantly, one Big 4 firm that participated in this research has adopted new and innovative fraud training methods based upon the results of this study. This article discusses these training implications, along with the potential for stories to help auditors improve their fraud-related judgments and additional considerations for the design of decision aids and knowledge management systems.
AB - Bierstaker, Hanes-Downey, Rose, and Thibodeau (2018) investigate whether using a fraud story (a one-page summary of the key facts in an SEC AAER written as a narrative) as compared to a traditional checklist improves fraud risk assessments in two separate experiments. This article summarizes their findings and discusses practical implications and actionable suggestions for audit practitioners. Specifically, the summary focuses on the capacity of fraud stories to help novice auditors develop knowledge structures that closely resemble the knowledge structures of experts and ultimately to improve experienced auditors’ risk assessments. Importantly, one Big 4 firm that participated in this research has adopted new and innovative fraud training methods based upon the results of this study. This article discusses these training implications, along with the potential for stories to help auditors improve their fraud-related judgments and additional considerations for the design of decision aids and knowledge management systems.
KW - checklists
KW - decision aids
KW - fraud judgments
KW - knowledge structures
KW - story
UR - http://www.scopus.com/inward/record.url?scp=85138613829&partnerID=8YFLogxK
U2 - 10.2308/CIIA-2022-002
DO - 10.2308/CIIA-2022-002
M3 - Article
AN - SCOPUS:85138613829
SN - 1936-1270
VL - 16
SP - P9-P16
JO - Current Issues in Auditing
JF - Current Issues in Auditing
IS - 2
ER -