IDEAS home Printed from https://ideas.repec.org/a/eme/arjpps/v28y2015i1p78-97.html
   My bibliography  Save this article

An empirical investigation of fraud risk assessment and knowledge requirement on fraud related problem representation in Nigeria

Author

Listed:
  • Oluwatoyin Muse Johnson Popoola
  • Ayoib B Che-Ahmad
  • Rose Shamsiah Samsudin

Abstract

Purpose - – The paper aims to investigate Task Performance Fraud Risk Assessment (TPFRA) and Knowledge Requirement (KR) of the forensic accountant and auditor on Fraud-Related Problem Representation (FRPR) in the Nigerian public sector. Design/methodology/approach - – The study used cross-sectional design and 400 survey questionnaires. The respondents are real professional people (auditors and forensic accountants in the Nigerian public sector) as true representatives to enhance the generalization of the outcomes. A total of 36 indicator items was measured on five-point Likert scale from 1 (strongly disagree) to 5 (strongly agree). Partial Least Square – Structural Equation Modelling 2.0 3M and IBM SPSS Statistics 20.0 were used as the primary statistical analysis tool for the study. Findings - – The results of the present study confirm the positive relationship between KR on TPFRA, positive relationship of KR on FRPR and positive relationship of FRPR and TPFRA. Specifically, the results revealed that FRPR positively mediates the relationship between TPFRA and KR (forensic accountant and auditor) in the areas of fraud prevention, detection and response. Research limitations/implications - – The first limitation deals with fraud and corrupt practices in a developing country, Nigeria. Examining the mediating influence of FRPR on KR and TPFRA in the public sector could be considered as sensitive and raise the issue of bias. The second limitation is the adoption of cross-sectional design in which data are collected at one point in time. Researchers are encouraged to use a longitudinal design to explore interactions between KR, FRPR and TPFRA. Practical implications - – This empirical study has revealed the value of KR (forensic accountant and auditor) as a significant capability requirement in the workplace. In addition, it shows the importance of FRPR as an important mental state in decision-making or judgment and also the significance of FRPR as an important mediating variable on KR and TPFRA. Originality/value - – No nation is immune to fraud, and loss due to fraud in the public sector is enormous and costly; the result of this research will improve the KR of auditors and forensic accountants in the areas of fraud detection, prevention and response. It will also contribute to the regulatory, legal and institutional frameworks in accounting and auditing systems in Nigeria and portend an increase in demand for forensic accountants.

Suggested Citation

  • Oluwatoyin Muse Johnson Popoola & Ayoib B Che-Ahmad & Rose Shamsiah Samsudin, 2015. "An empirical investigation of fraud risk assessment and knowledge requirement on fraud related problem representation in Nigeria," Accounting Research Journal, Emerald Group Publishing Limited, vol. 28(1), pages 78-97, July.
    • Handle: RePEc:eme:arjpps:v:28:y:2015:i:1:p:78-97
    DOI: 10.1108/ARJ-08-2014-0067
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-08-2014-0067/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-08-2014-0067/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/ARJ-08-2014-0067?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah, 2014. "Task Performance Fraud Risk Assessment on Forensic Accountant and Auditor Knowledge and Mindset in Nigerian Public Sector," MPRA Paper 66772, University Library of Munich, Germany, revised 2014.
    2. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah, 2014. "Forensic Accounting and Fraud: Capability and Competence Requirements in Malaysia," MPRA Paper 66664, University Library of Munich, Germany, revised 2014.
    3. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah, 2013. "Forensic Accounting Knowledge and Skills on Task Performance Fraud Risk Assessment: Nigerian Public Sector Experience," MPRA Paper 66676, University Library of Munich, Germany, revised 2013.
    4. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah & Ahmad, Hartini, 2013. "An Examination of Task Performance Fraud Risk Assessment on Forensic Accountant Knowledge and Mindset in Nigerian Public Sector," MPRA Paper 66647, University Library of Munich, Germany, revised Apr 2013.
    5. Kathryn Kadous & Lisa M. Sedor, 2004. "The Efficacy of Third†Party Consultation in Preventing Managerial Escalation of Commitment: The Role of Mental Representations," Contemporary Accounting Research, John Wiley & Sons, vol. 21(1), pages 55-82, March.
    6. Knapp, Carol A. & Knapp, Michael C., 2001. "The effects of experience and explicit fraud risk assessment in detecting fraud with analytical procedures," Accounting, Organizations and Society, Elsevier, vol. 26(1), pages 25-37, January.
    7. Karim Jamal, 2008. "Mandatory Audit of Financial Reporting: A Failed Strategy for Dealing with Fraud," Accounting Perspectives, John Wiley & Sons, vol. 7(2), pages 97-110, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, vol. 11(6), pages 1-31, March.
    2. Ala'a Zuhair Mansour & Aidi Ahmi & Oluwatoyin Muse Johnson Popoola, 2020. "The Personality Factor of Conscientiousness on Skills Requirement and Fraud Risk Assessment Performance," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 405-415, April.
    3. Popoola, Oluwatoyin Muse Johnson & Ahmad, Ayoib B Che & Abdullah, Zaimah & Idris, Kamil Md & Abu Bakar, Fathiyyah, 2016. "An empirical effect of Fraud Specific Problem Representation on Accountants’ Skills and Fraud Risk Assessment," MPRA Paper 75931, University Library of Munich, Germany.
    4. Ala'a Zuhair Mansour & Aidi Ahmi & Oluwatoyin Muse Johnson Popoola, 2021. "The Interaction Effect of Personality Factor on Capability and Competence Requirement," Business and Economic Research, Macrothink Institute, vol. 11(1), pages 1-14, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah, 2015. "Forensic Accountant and Auditor Knowledge and Skills Requirements for Task Performance Fraud Risk Assessment in the Nigerian Public Sector," MPRA Paper 66655, University Library of Munich, Germany, revised 15 Jun 2015.
    2. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah, 2014. "Forensic Accounting Knowledge and Mindset on Task Performance Fraud Risk Assessment," MPRA Paper 66665, University Library of Munich, Germany, revised 2014.
    3. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, vol. 11(6), pages 1-31, March.
    4. Ala'a Zuhair Mansour & Aidi Ahmi & Oluwatoyin Muse Johnson Popoola, 2021. "The Interaction Effect of Personality Factor on Capability and Competence Requirement," Business and Economic Research, Macrothink Institute, vol. 11(1), pages 1-14, March.
    5. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah, 2014. "Forensic Accounting and Fraud: Capability and Competence Requirements in Malaysia," MPRA Paper 66664, University Library of Munich, Germany, revised 2014.
    6. Popoola, Oluwatoyin Muse Johnson & Ahmad, Ayoib B Che & Abdullah, Zaimah & Idris, Kamil Md & Abu Bakar, Fathiyyah, 2016. "An empirical effect of Fraud Specific Problem Representation on Accountants’ Skills and Fraud Risk Assessment," MPRA Paper 75931, University Library of Munich, Germany.
    7. Luippold, Benjamin L. & Kida, Thomas & Piercey, M. David & Smith, James F., 2015. "Managing audits to manage earnings: The impact of diversions on an auditor’s detection of earnings management," Accounting, Organizations and Society, Elsevier, vol. 41(C), pages 39-54.
    8. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah, 2014. "Fraud and Forensic Accounting: Knowledge and Risk Assessment Task Performance in Malaysian Public Sector – Conceptual study," MPRA Paper 66680, University Library of Munich, Germany, revised 2014.
    9. Robert Mayberry & James Sanders Boles & Naveen Donthu, 2018. "An escalation of commitment perspective on allocation-of-effort decisions in professional selling," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 879-894, September.
    10. Ruchi Agarwal, 2018. "A multiple perspective view to rampant fraudulent culture in the Indian insurance industry," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 16(4), pages 416-437.
    11. Jessen L. Hobson & William J. Mayew & Mark E. Peecher & Mohan Venkatachalam, 2017. "Improving Experienced Auditors’ Detection of Deception in CEO Narratives," Journal of Accounting Research, Wiley Blackwell, vol. 55(5), pages 1137-1166, December.
    12. Mandy M Cheng & Habib Mahama, 2011. "The impact of capital proposal guidelines and perceived preparer biases on reviewers’ investment evaluation decisions," Australian Journal of Management, Australian School of Business, vol. 36(3), pages 349-370, December.
    13. Rajat Deb, 2018. "Financial Audit or Forensic Audit? Government Sector Panorama," Indian Journal of Corporate Governance, , vol. 11(2), pages 135-158, December.
    14. Salter, Stephen B. & Sharp, David J. & Chen, Yasheng, 2013. "The moderating effects of national culture on escalation of commitment," Advances in accounting, Elsevier, vol. 29(1), pages 161-169.
    15. Williams, James W., 2013. "Regulatory technologies, risky subjects, and financial boundaries: Governing ‘fraud’ in the financial markets," Accounting, Organizations and Society, Elsevier, vol. 38(6), pages 544-558.
    16. Peter Gordon Roetzel & Burkhard Pedell & Daniel Groninger, 2020. "Information load in escalation situations: combustive agent or counteractive measure?," Journal of Business Economics, Springer, vol. 90(5), pages 757-786, June.
    17. Cohen, Jeffrey & Ding, Yuan & Lesage, Cedric & Stolowy, Hervé, 2008. "The role of managers’ behavior in corporate fraud," HEC Research Papers Series 900, HEC Paris.
    18. Bernardino, Wilton & Ospina, Raydonal & Souza, Filipe Costa de & Rêgo, Leandro & Pereira, Felipe, 2021. "Risk curves: A methodology to evaluate the risk of fraud by stock price manipulation based on game theory and detection software," Journal of Economics and Business, Elsevier, vol. 113(C).
    19. Holm, Claus & Langsted, Lars Bo & Seehausen, Jesper, 2007. "An Examination of Actual Fraud Cases With a Focus on the Auditor’s Responsibility," Accounting Research Center Working Papers A-2007-05, University of Aarhus, Aarhus School of Business, Department of Business Studies.
    20. Popoola, Oluwatoyin Muse Johnson & Che-Ahmad, Ayoib & Samsudin, Rose Shamsiah & Yussof, Rushami Zien, 2013. "The Impact of Task Performance Fraud Risk Assessment on Forensic Skills and Mindsets: A Conceptual Model," MPRA Paper 66774, University Library of Munich, Germany, revised 2013.

    More about this item

    Keywords

    Nigeria; Auditing; Forensic accounting; Fraud-related problem representation; Knowledge requirement; Task performance fraud risk assessment; M410; M420;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:arjpps:v:28:y:2015:i:1:p:78-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.