What is it about?
The study involves experiments with practicing auditors from Big 4 audit firms, as well as accounting students. The experiments reveal that asking less experienced auditors to read simple, short stories about fraud causes the auditors to think more like expert auditors. Reading custom-designed stories about fraud enhances auditors' knowledge and causes less experienced auditors to make decisions that resemble the decisions of expert auditors. Stories appear to be a powerful tool for improving financial auditors' abilities to evaluate fraud risk and detect fraud.
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Why is it important?
The study shows that it is possible to improve the detection of financial fraud by designing short stories for financial auditors to read. The method holds so much promise that stories designed by the authors are already being deployed in practice nationally.
Perspectives
We thank the public accounting firms who participated in the experiments and helped to improve the design of these studies.
Professor Jacob M Rose
Oregon State University
Read the Original
This page is a summary of: Effects of Stories and Checklist Decision Aids on Knowledge Structure Development and Auditor Judgment, Journal of Information Systems, June 2018, American Accounting Association,
DOI: 10.2308/isys-51913.
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