Exploring what motivates management in Egypt to commit financial reporting fraud

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This paper aims to explore the perceptions of external auditors’ on the motivations behind management fraud, which could increase the likelihood of detecting financial reporting fraud. Mixed research methods, namely, an online questionnaire and semi-structured interviews, were used for data collection from external auditors in Egypt. The findings revealed that the desire to get remuneration or bonuses and the need to secure financing are the most common motivations behind management fraud in Egypt. The current study also found other motivations behind management fraud that could be more specific to the Egyptian context.This study was the first to provide empirical evidence on the motivations behind management fraud in the context of a developing nation such as Egypt. The findings of this study could be important for Egyptian regulators and external auditors who wish to reduce fraud risks in their own country. The findings could also help external auditors across the globe in recognising the signs that can trigger management motivations to engage in financial reporting fraud, which in turn could increase the likelihood of detecting financial reporting fraud.

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