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Determinants of fraud examination performance: An empirical study of internal investigation reports
Author(s) -
Gottschalk Petter
Publication year - 2019
Publication title -
journal of investigative psychology and offender profiling
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.479
H-Index - 22
eISSN - 1544-4767
pISSN - 1544-4759
DOI - 10.1002/jip.1520
Subject(s) - seriousness , empirical examination , audit , secrecy , accounting , psychology , business , internal audit , actuarial science , law , political science
Fraud examiners from global auditing firms and local law firms are in the business of private policing by conducting internal investigations in private and public organisations when there is suspicion of financial crime. The business is often characterised by secrecy, and reports of investigations are often difficult or impossible to disclose. Since 2012, we have successfully retrieved 63 fraud examination reports in Scandinavia. Based on these reports, this article presents a statistical analysis of fraud examination performance. Performance was measured in terms of the extent of successful reconstruction of past events and the extent of justification of conclusions from the examinations. We identified three statistically significant determinants of fraud examination performance: the seriousness of the consequences, the relative seriousness of the consequences and the conclusions, and the seriousness of the conclusions.