Our personalities affect every decision we make and our moral code. When looking at crime, we often see personality traits being used as possible explanatory factors of why crimes are committed. Fraud is no exception to this. Previous research suggests that when trying to predict which individuals are more likely to commit fraud, we should start the investigation with personality traits. The Dark Triad (DT) consists of three negative traits: narcissism, psychopathy, and Machiavellianism. Previous research found that each of the Dark Triad traits has a strong correlation to dishonesty, selfishness, and unethical behaviors (Harrison, Summers, and Mennecke 2018; Lee and Ashton 2005). The Harrison et al. (2018) study found that the presence of the Dark Triad leads to increased online fraud risk. Our research resulted in a similar conclusion for occupational fraud. In addition, we found that income level, education level, and age correlated with occupational fraud risk.
{"title":"The Effect of the Dark Triad on Organizational Fraud","authors":"Shae Antonicelli, Elizabeth A. Felski","doi":"10.2308/jfar-2023-033","DOIUrl":"https://doi.org/10.2308/jfar-2023-033","url":null,"abstract":"\u0000 Our personalities affect every decision we make and our moral code. When looking at crime, we often see personality traits being used as possible explanatory factors of why crimes are committed. Fraud is no exception to this. Previous research suggests that when trying to predict which individuals are more likely to commit fraud, we should start the investigation with personality traits. The Dark Triad (DT) consists of three negative traits: narcissism, psychopathy, and Machiavellianism. Previous research found that each of the Dark Triad traits has a strong correlation to dishonesty, selfishness, and unethical behaviors (Harrison, Summers, and Mennecke 2018; Lee and Ashton 2005). The Harrison et al. (2018) study found that the presence of the Dark Triad leads to increased online fraud risk. Our research resulted in a similar conclusion for occupational fraud. In addition, we found that income level, education level, and age correlated with occupational fraud risk.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"14 19","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141042205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Adam W Du Pon, Stephanie Hairston, Dallin O. Smith
We examine fraud from an industry competition perspective, oriented from inventory theory. We find that fraud occurs among manufacturers more than nonmanufacturers and that the association between price competition and fraud is significantly more pronounced in the manufacturing sector. Aggregating inventory and cash flow patterns to the industry level, we report that industry inventory imbalance rates, from either excessive stockpiling or inventory leanness, associate with increased future price competition, which subsequently associates with more fraud. However, for manufacturers, the industry-wide prevalence of either excess or leanness amplifies future price competition, which is observed as a U-shaped association that ultimately ties to more fraud. These effects are stronger when extreme leanness is the manufacturing industry’s standard. We also provide evidence that the association between price competition and fraud is comparable to managerial incentives’ association with fraud. Together, our findings contribute to the literature on price competition, inventory management, and corporate misconduct. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M11; M21; M41; L60.
我们以库存理论为导向，从行业竞争的角度研究了欺诈问题。我们发现，欺诈行为在制造商中的发生率高于非制造商，而且价格竞争与欺诈行为之间的关联在制造业中更为明显。将库存和现金流模式汇总到行业层面后，我们发现，由于过度囤积或库存不足造成的行业库存失衡率与未来价格竞争加剧有关，而价格竞争加剧又与更多的欺诈行为有关。然而，对于制造商而言，全行业普遍存在的库存过剩或库存不足都会加剧未来的价格竞争，这表现为一种 U 型关联，最终与更多的欺诈行为相关联。当制造业的标准是极度精益时，这些效应会更强。我们还提供证据表明，价格竞争与欺诈之间的关联与管理激励与欺诈之间的关联相当。总之，我们的研究结果为有关价格竞争、库存管理和企业不当行为的文献做出了贡献。数据可用性：数据可从文中引用的公共来源获得。JEL 分类：M11；M21；M41；L60。
{"title":"Manufacturing and Fraud: Evidence from Price Competition and Lean Inventories","authors":"Adam W Du Pon, Stephanie Hairston, Dallin O. Smith","doi":"10.2308/jfar-2023-038","DOIUrl":"https://doi.org/10.2308/jfar-2023-038","url":null,"abstract":"\u0000 We examine fraud from an industry competition perspective, oriented from inventory theory. We find that fraud occurs among manufacturers more than nonmanufacturers and that the association between price competition and fraud is significantly more pronounced in the manufacturing sector. Aggregating inventory and cash flow patterns to the industry level, we report that industry inventory imbalance rates, from either excessive stockpiling or inventory leanness, associate with increased future price competition, which subsequently associates with more fraud. However, for manufacturers, the industry-wide prevalence of either excess or leanness amplifies future price competition, which is observed as a U-shaped association that ultimately ties to more fraud. These effects are stronger when extreme leanness is the manufacturing industry’s standard. We also provide evidence that the association between price competition and fraud is comparable to managerial incentives’ association with fraud. Together, our findings contribute to the literature on price competition, inventory management, and corporate misconduct.\u0000 Data Availability: Data are available from the public sources cited in the text.\u0000 JEL Classifications: M11; M21; M41; L60.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"37 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140267987","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This introduction is a review of the historical events of the COVID-19 pandemic and sets the stage for the research papers that follow.
本导言回顾了 COVID-19 大流行的历史事件，为后面的研究论文做了铺垫。
{"title":"Remembering the Events of the COVID-19 Pandemic","authors":"Andrea M. Scheetz, Aaron B. Wilson","doi":"10.2308/jfar-2023-025","DOIUrl":"https://doi.org/10.2308/jfar-2023-025","url":null,"abstract":"This introduction is a review of the historical events of the COVID-19 pandemic and sets the stage for the research papers that follow.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"139 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139258652","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
James A. DiGabriele, Hannah Smith Antinozzi, Charles Russo, Philip W. Kunz
We synthesize academic research, court cases, and Internal Revenue Service directives related to taxation and forensic accounting to improve the understanding of the extant literature on central issues. We emphasize areas where there is a need for future research opportunities that will contribute to the literature in taxation and forensic accounting. We identify research opportunities in taxation and forensic accounting in critical areas, such as (1) tax issues in business valuation; (2) indirect methods of reconstructing taxable income, including tax fraud and evasion; (3) corporate culture and ethical issues; (4) fraud in tax factors of performance, risk, and disclosure; and (5) internal control and tax assessment. Generally, we find research on taxation and forensic accounting to be scant. This space creates an emerging venue for future research.
{"title":"Taxation and Forensic Accounting: Informing Research and Practice","authors":"James A. DiGabriele, Hannah Smith Antinozzi, Charles Russo, Philip W. Kunz","doi":"10.2308/jfar-2023-021","DOIUrl":"https://doi.org/10.2308/jfar-2023-021","url":null,"abstract":"We synthesize academic research, court cases, and Internal Revenue Service directives related to taxation and forensic accounting to improve the understanding of the extant literature on central issues. We emphasize areas where there is a need for future research opportunities that will contribute to the literature in taxation and forensic accounting. We identify research opportunities in taxation and forensic accounting in critical areas, such as (1) tax issues in business valuation; (2) indirect methods of reconstructing taxable income, including tax fraud and evasion; (3) corporate culture and ethical issues; (4) fraud in tax factors of performance, risk, and disclosure; and (5) internal control and tax assessment. Generally, we find research on taxation and forensic accounting to be scant. This space creates an emerging venue for future research.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"134 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139302713","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Hong-lin Yu, Xinrui Lin, Y. Fan, Tianchi Yan, Yizao Chen
The aim of this study is to investigate how CEOs’ narcissism influences their trust in their counterparts and risk-taking in joint R&D projects under different equity allocations. Using an experimental design and a sample of 80 participants, we find that the high-narcissism participants have less trust in their counterparts but are more likely to invest in joint research and development (R&D) projects under either high or equity allocation owing to their narcissistic personalities. This suggests that highly narcissistic participants are more likely to take risks in R&D cooperation. The results of our study imply that individuals’ narcissism poses a serious threat to R&D cooperation and business resources. Data Availability: The experiment data and material are available from the authors.
{"title":"Narcissism, Cooperative Trust in R&D Cooperation, and Risk-Taking","authors":"Hong-lin Yu, Xinrui Lin, Y. Fan, Tianchi Yan, Yizao Chen","doi":"10.2308/jfar-2022-012","DOIUrl":"https://doi.org/10.2308/jfar-2022-012","url":null,"abstract":"\u0000 The aim of this study is to investigate how CEOs’ narcissism influences their trust in their counterparts and risk-taking in joint R&D projects under different equity allocations. Using an experimental design and a sample of 80 participants, we find that the high-narcissism participants have less trust in their counterparts but are more likely to invest in joint research and development (R&D) projects under either high or equity allocation owing to their narcissistic personalities. This suggests that highly narcissistic participants are more likely to take risks in R&D cooperation. The results of our study imply that individuals’ narcissism poses a serious threat to R&D cooperation and business resources.\u0000 Data Availability: The experiment data and material are available from the authors.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132732881","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Employers require that accounting students think critically and use data analytics tools to gain valuable insights for forensic, tax, auditing, and advisory services. This case provides students with a hands-on learning experience using data analytics and encourages critical thinking. Students are tasked with using Alteryx and Tableau to prepare and analyze a fictitious storm dataset and insurance claims dataset to identify claims that may be suspicious. They create visualizations and spreadsheets that support their recommendation for further analysis. The learning objectives are: (1) develop student knowledge and ability to conduct data preparation through the “Extract, Transform, and Load” (ETL) process; (2) expand student knowledge of data analytics and fraud investigation; (3) provide students with practice in fraud investigation skills, including critical thinking and problem solving; (4) develop skills specific to data analytics and data visualization in accounting; and (5) develop effective oral and written communication skills.
{"title":"A Case Study Using Data Analytics to Detect Hail Damage Insurance Claim Fraud","authors":"Christine Cheng, Chih-Chen Lee","doi":"10.2308/jfar-2021-027","DOIUrl":"https://doi.org/10.2308/jfar-2021-027","url":null,"abstract":"\u0000 Employers require that accounting students think critically and use data analytics tools to gain valuable insights for forensic, tax, auditing, and advisory services. This case provides students with a hands-on learning experience using data analytics and encourages critical thinking. Students are tasked with using Alteryx and Tableau to prepare and analyze a fictitious storm dataset and insurance claims dataset to identify claims that may be suspicious. They create visualizations and spreadsheets that support their recommendation for further analysis. The learning objectives are: (1) develop student knowledge and ability to conduct data preparation through the “Extract, Transform, and Load” (ETL) process; (2) expand student knowledge of data analytics and fraud investigation; (3) provide students with practice in fraud investigation skills, including critical thinking and problem solving; (4) develop skills specific to data analytics and data visualization in accounting; and (5) develop effective oral and written communication skills.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128310341","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The accounting whistleblower literature has expanded with the passage of antifraud regulations such as the Sarbanes-Oxley and Dodd-Frank Acts. Prior studies focus primarily on the detection of the perceived wrongdoing through whistleblower intentions rather than prevention through the potential whistleblower targets (e.g., financial managers). We study the effects of whistleblower program financial incentives (i.e., incentives or no incentives) and whistleblower program administration (i.e., internally or externally) on financial managers’ reporting judgments. A sample of 91 experienced financial managers provided their likelihood to recognize goodwill impairment in an experiment where whistleblower program incentives and administration were manipulated randomly between subjects. Results indicate that financial managers make more conservative judgments when the whistleblower program includes financial incentives. We find a significant interaction where financial managers are most likely to recognize impairment when incentives exist and the program is administered internally. Supplemental analysis indicates that nonprofit managers act less conservatively than other industries.
{"title":"The Effects of Whistleblower Program Financial Incentives and Administration on Financial Managers’ Reporting Judgments","authors":"Daniel J. Gaydon, Douglas M. Boyle","doi":"10.2308/jfar-2022-026","DOIUrl":"https://doi.org/10.2308/jfar-2022-026","url":null,"abstract":"\u0000 The accounting whistleblower literature has expanded with the passage of antifraud regulations such as the Sarbanes-Oxley and Dodd-Frank Acts. Prior studies focus primarily on the detection of the perceived wrongdoing through whistleblower intentions rather than prevention through the potential whistleblower targets (e.g., financial managers). We study the effects of whistleblower program financial incentives (i.e., incentives or no incentives) and whistleblower program administration (i.e., internally or externally) on financial managers’ reporting judgments. A sample of 91 experienced financial managers provided their likelihood to recognize goodwill impairment in an experiment where whistleblower program incentives and administration were manipulated randomly between subjects. Results indicate that financial managers make more conservative judgments when the whistleblower program includes financial incentives. We find a significant interaction where financial managers are most likely to recognize impairment when incentives exist and the program is administered internally. Supplemental analysis indicates that nonprofit managers act less conservatively than other industries.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"108 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129802272","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This case utilizes a fictional bar to engage students in using accounting information to detect and monitor for asset misappropriation by employees. Students are given background information about Martin’s Lounge and a task of identifying asset misappropriation and estimating losses due to asset misappropriation. All information necessary to solve the case is provided in the case narrative and the six Excel files supplied with the case. Students can use generalized audit software (e.g., IDEA), Microsoft Excel, or data analytic/visualization software to solve the case. The case challenges students to consider how accounting data can be used to detect instances of asset misappropriation and the possible perpetrator of a fraud. The case can be assigned as an individual assignment or a small group assignment.
{"title":"Martin’s Lounge: From Valuation Engagement to Fraud Examination","authors":"R. Young, Carolyn T. Conn, Billy E. Brewster","doi":"10.2308/jfar-2022-002","DOIUrl":"https://doi.org/10.2308/jfar-2022-002","url":null,"abstract":"\u0000 This case utilizes a fictional bar to engage students in using accounting information to detect and monitor for asset misappropriation by employees. Students are given background information about Martin’s Lounge and a task of identifying asset misappropriation and estimating losses due to asset misappropriation. All information necessary to solve the case is provided in the case narrative and the six Excel files supplied with the case. Students can use generalized audit software (e.g., IDEA), Microsoft Excel, or data analytic/visualization software to solve the case. The case challenges students to consider how accounting data can be used to detect instances of asset misappropriation and the possible perpetrator of a fraud. The case can be assigned as an individual assignment or a small group assignment.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"62 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129197451","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Accounting data bases contain much information reflecting a company’s financial performance, clients, suppliers, and other relevant information about the company’s activities. Thus, attracting criminal activity is empowered by a wide range of new and evolving digital technologies. More interestingly, all of these electronic media create digital traces, providing useful information for the digital investigation process. As digital crime targeting millions of pieces of sensitive information from data bases is rising, specific expertise and an informed approach in data base forensics are required. This study suggests an enhanced meta-framework, named data base evidence finding investigation (DEFI), to investigate an accounting data base to detect tampering. DEFI offers more targeted and streamlined guidance for data base experts to perform investigations while preserving the digital evidence's integrity and leaving it unchanged. Using an example, we demonstrate that the proposed enhanced meta-framework can guide the detection of suspicious transactions in an accounting data base.
{"title":"Electronic Evidence: A Framework for Applying Digital Forensics to Data Base","authors":"S. Boumediene, Salma Boumediene","doi":"10.2308/jfar-2022-006","DOIUrl":"https://doi.org/10.2308/jfar-2022-006","url":null,"abstract":"\u0000 Accounting data bases contain much information reflecting a company’s financial performance, clients, suppliers, and other relevant information about the company’s activities. Thus, attracting criminal activity is empowered by a wide range of new and evolving digital technologies. More interestingly, all of these electronic media create digital traces, providing useful information for the digital investigation process. As digital crime targeting millions of pieces of sensitive information from data bases is rising, specific expertise and an informed approach in data base forensics are required. This study suggests an enhanced meta-framework, named data base evidence finding investigation (DEFI), to investigate an accounting data base to detect tampering. DEFI offers more targeted and streamlined guidance for data base experts to perform investigations while preserving the digital evidence's integrity and leaving it unchanged. Using an example, we demonstrate that the proposed enhanced meta-framework can guide the detection of suspicious transactions in an accounting data base.","PeriodicalId":149240,"journal":{"name":"Journal of Forensic Accounting Research","volume":"67 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123589119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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