Journal article
An analysis of Hong Kong auditors' perceptions of the importance of selected Red Flag factors in risk assessment
Journal of Business Ethics, Vol.32(3), pp.263-274
2001
Abstract
This study examined auditors perceptions of the relative level of risk of fraud and material irregularities associated with the presence of 6 red flag factors and also evaluated the quality of auditors' judgements. The study was conducted in two stages. In the first stage, subjects were asked to rank the importance of 15 factors that proxy the existence of material misstatements. Based on the responses to this questionnaire, 6 of the most important factors were identified and included in the second stage, a lens model experiment. Results showed that misstatements in prior audits and indicators of going-concern problems were perceived to be the most significant factors in alterting auditors to the risk of fraud and material irregularities. However, the two most important factors in the lens model experiment are not the same as the results of the first survey suggesting that the first group of respondents, faced with a simple questionnaire, used heuristics in their decision making.
Details
- Title
- An analysis of Hong Kong auditors' perceptions of the importance of selected Red Flag factors in risk assessment
- Authors
- Abdul Majid (Author) - Chinese University of Hong KongFerdinand Gul (Author) - City University of Hong KongJudy Tsui (Author) - City University of Hong Kong
- Publication details
- Journal of Business Ethics, Vol.32(3), pp.263-274
- Publisher
- Springer Netherlands
- DOI
- 10.1023/A:1010763420754
- ISSN
- 1573-0697
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99679188502621
- Output Type
- Journal article
Metrics
13 Record Views
InCites Highlights
These are selected metrics from InCites Benchmarking & Analytics tool, related to this output
- Collaboration types
- Domestic collaboration
- Web Of Science research areas
- Business
- Ethics
UN Sustainable Development Goals (SDGs)
This output has contributed to the advancement of the following goals:
Source: InCites