Improving Fraud Performance with a Different Perspective

Abstract

Chui, Curtis, and Pike (2022) find that auditors encouraged to take a forensic specialist’s perspective provide a more effective and efficient risk response in varying fraud risk environments than with their traditional mindset. The study provides evidence that auditors can adopt the forensic perspective, which focuses on fraud detection, while maintaining their typical audit roles and responsibilities. We summarize their key findings and discuss practical implications and actionable suggestions for audit practitioners. These insights suggest a potential low-cost mechanism to improve auditors’ fraud risk assessments and subsequent risk responses.