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Fraud interpretation and disclaimer audit opinion

Fraud interpretation and disclaimer audit opinion Financial transactions fraud (FTF) and financial statements fraud (FSF) grew exponentially during the past decades coupled with complex and sophisticated technological developments. This study aims to investigate the practitioners’ interpretation of fraud with recurring audit issues in the disclaimer audit opinions (DAOs) reports within the Solomon Islands public sector (SIPS).Design/methodology/approachThe empirical study involves qualitative data analysis. The analysis alongside theoretical developments is informed by the “fraud triangle” theory.FindingsThe research results revealed the practitioners’ acknowledgement of FSF, FTF and fraud in the SIPS, as generally prevalent and aligned to some components of the fraud triangle theory. This study is sceptic about the good intentions of the International Public-Sector Accounting Standards –Cash-basis framework and favours the Provincial Government Act 1997 and the Public Finance Management Act 2013 requirements. It further suggests that fraud is positively linked to repeated audited report issues and the executive management when DAOs issues appear repeatedly in annual audit reports.Originality/valueThis study contributes to the literature on fraud and attempts to link the interpretation of fraud with recurring audit issues in the DAOs reports in the SIPS. It views fraud awareness and knowledge from the perspective of the audit practitioner. There is an increasing need to understand how fraud knowledge impacts decision making and the actions of auditors and others, an area that is underdeveloped. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

Fraud interpretation and disclaimer audit opinion

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References (64)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0268-6902
eISSN
0268-6902
DOI
10.1108/maj-04-2018-1867
Publisher site
See Article on Publisher Site

Abstract

Financial transactions fraud (FTF) and financial statements fraud (FSF) grew exponentially during the past decades coupled with complex and sophisticated technological developments. This study aims to investigate the practitioners’ interpretation of fraud with recurring audit issues in the disclaimer audit opinions (DAOs) reports within the Solomon Islands public sector (SIPS).Design/methodology/approachThe empirical study involves qualitative data analysis. The analysis alongside theoretical developments is informed by the “fraud triangle” theory.FindingsThe research results revealed the practitioners’ acknowledgement of FSF, FTF and fraud in the SIPS, as generally prevalent and aligned to some components of the fraud triangle theory. This study is sceptic about the good intentions of the International Public-Sector Accounting Standards –Cash-basis framework and favours the Provincial Government Act 1997 and the Public Finance Management Act 2013 requirements. It further suggests that fraud is positively linked to repeated audited report issues and the executive management when DAOs issues appear repeatedly in annual audit reports.Originality/valueThis study contributes to the literature on fraud and attempts to link the interpretation of fraud with recurring audit issues in the DAOs reports in the SIPS. It views fraud awareness and knowledge from the perspective of the audit practitioner. There is an increasing need to understand how fraud knowledge impacts decision making and the actions of auditors and others, an area that is underdeveloped.

Journal

Managerial Auditing JournalEmerald Publishing

Published: May 12, 2021

Keywords: Public sector; Auditing; Fraud; Solomon Islands; Financial statement fraud; Disclaimer audit opinions

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