The ACFE Research Institute (ARI) provides monetary and data grants to support research into the latest fraud trends and developments affecting individuals, businesses and governments. When evaluating research grant proposals, the ARI’s goal is to award grants to research that will help improve the ability of businesses and governments to combat fraud and educate the public on effective methods of identification and deterrence.
Research studies approved for funding or data support through the ARI:
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Artificial Intelligence/Machine Learning
An Audit Planning Tool for Fraud Risk Assessment: A Machine Learning Approach by Miklos Vasarhelyi (KPMG Distinguished Professor of Accounting Information Systems and Director of Rutgers Accounting Research Center and Continuous Auditing and Reporting Lab), Helen Brown-Liburd (Associate Professor, Accounting & Information Systems and Associate Director of Rutgers Continuous Auditing & Reporting Lab), Soohyun Cho (Assistant Professor, Accounting & Information Systems, Rutgers) and Ivy Munoko, CISA, ACCA (Ph.D. student, Accounting Information Systems, Rutgers) Data-Supported Study, Summer 2020
Machine Learning from Human Demonstration: Applications for Fraud Investigation by Stephanie Rosenthal (Chatham University) and Tingting (Rachel) Chung (William & Mary) Funded Study, Summer 2019
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Asset Misappropriation
The Corporate Fraud Offender: An Investigation of Personal and Organizational Attributes of Corporate Accounting Fraud/ Bryant University Honors Program by Edinaldo Tebaldi (Bryant University Senior Honors Thesis/Professor), Michael Wojcikiewicz (Honors Student) and Kwadwo Asare (Honors Faculty Advisor) Data-Supported Study, Summer 2020
An Experimental Investigation of Nonprofit Form 990: Reporting of Significant Diversions of Assets by Andrea Scheetz (Radford University) and Aaron Wilson (Ohio University) Funded Study, Summer 2019
Asset Misappropriation in Education: Investigating Embezzlement in the K-12 Setting by Jared Eutsler and Lauren Eutsler (both of North Texas University) Funded Study, Summer 2019
Thanks to the ACFE’s Report to the Nations (RTTN), much is known about white-collar fraud in the business setting. However, little is known about occupational fraud in education. Eutsler and Eutsler identified approximately 2,500 news articles describing embezzlement in K-12 education during the past decade. They then compared these education frauds to frauds reported in the RTTN database. The authors find that education frauds are smaller in magnitude but last longer than RTTN frauds. In addition, fraudsters in the education field tend to be older and are more likely to be female. Finally, education frauds are more likely to involve cash or checks, which demonstrates the importance of internal controls over cash and disbursements within school systems. These results provide important information to school administrators and communities about the risk of embezzlement within local schools.A Comparison of the Proclivity to Steal From individuals, Not-for-Profit Organizations, and For-Profit Organizations by Cynthia L. Krom (Franklin & Marshall College) Funded Study, Summer 2015
Asset Misappropriation: Analysis of Predictors of Organizational Losses by Eberhard Feess and Yuriy Timofeyev (Frankfurt School of Finance & Management) (Complete) Data-Supported Study, Fall 2014
Asset Misappropriation Fraud and the Economy: An Experiment by D. Kip Holderness Jr. (West Virginia University) and Jahangir Sultan (Bentley University) Funded Study, Summer 2013This is one of five research monographs (white papers) commissioned by the Institute of Fraud Prevention (IFP) to address the following questions and issues:
- What do we currently know about the topical area?
- What research has been done?
- What are the lessons that we have learned?
- What don't we know and what are we missing?
- What additional resources are needed to do research on the topical area (additional theory, data, subjects, research methodology, etc.)?
Asset Misappropriation by Chad Albrecht (Utah State), Mary-Jo Kranacher, Editor-in-Chief (CPA Journal and York College) and Steve Albrecht (Brigham Young University) Funded Study, 2008
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Attributes of Fraudsters
The Corporate Fraud Offender: An Investigation of Personal and Organizational Attributes of Corporate Accounting Fraud/ Bryant University Honors Program by Edinaldo Tebaldi (Brynat University Senior Honors Thesis/Professor), Michael Wojcikiewicz (Honors Student) and Kwadwo Asare (Honors Faculty Advisor) Data-Supported Study, Summer 2020
An Examination of Fraud Led by Information Technology Perpetrators by Richard Dull and Marie Rice (both of West Virginia University) Data-Supported Study, Summer 2019
Companies increasingly rely on technology adoption, as well as professionals with the necessary skills and expertise to manage advanced technology. These information technology professionals are provided privileged access to organizational systems to complete their duties. Dull and Rice examine how frauds committed by IT perpetrators compare to frauds committed by non-IT fraudsters. They find that IT specialists’ expertise and systems access increase their capability to commit and conceal fraud. Frauds perpetrated by IT specialists occur earlier in their tenure than those of their non-specialist counterparts. In addition, IT perpetrators generate similar losses as non-IT perpetrators in shorter time-frames. Anti-fraud specialists should be aware of these important differences and consider how to better detect fraud committed by IT perpetrators.Social Identity, Gender and the Intersection with Fraud by James DiGabriele (Montclair) and Scott Fleming, Richard Riley and Trevor Sorensen (all at West Virginia University) Data-Supported Study, Summer 2019
Occupational Fraud Magnitude: Considerations of Industry Traits and Fraud Techniques by Aiyanna Washington, Amber DeCarlo and Tingting (Rachel) Chung (Chatham University) Data-Supported Study, Fall 2017An Examination of Fraud Perpetrator Outcomes: Termination, Criminal and Civil by Erlina Papakroni and Marie Rice (both at West Virginia University) Data-Supported Study, Fall 2017
Does Non-Financial Misconduct Predict Financial Misconduct? Evidence from Federal Agency Penalties by Aneesh Raghunandan (Stanford University) Funded Study, Summer 2017
What Factors Explain the Duration of Fraud? by Dahlia Robinson and Delroy Hunter (University of South Florida) Funded Study, Summer 2016
Prenatal Testosterone and Misreporting Behavior: Digit Ratios (2D:4D and rel2) as Predictors of Misreporting Behavior by Kristina Demek (University of Central Florida) Funded Study, Fall 2015
Fraud Losses, Individual and Organizational Conversion: The Intersection with Collusion by Erlina Papakroni and Richard Riley (both from West Virginia University) Data-Supported Study, Summer 2015
The Impact Of Occupational Mobility On White-Collar Crime: Gender Distinctions In A Global Setting by Theresa Hilliard and Presha Neidermeyer (both at West Virginia University) Data-Supported Study, Fall 2013
Understanding Differences Between Accidental Fraudsters and Predators by Dana Hermanson, Scot Justice, Sri Ramamoorti, (All from Kennesaw State University) and Richard Riley (West Virginia University) Data-Supported Study, Fall 2012
Nature vs. Nurture: The Genetic Basis of Fraud Victimization by Tingting (Rachel) Chung (Carlow), Dennis Galletta (University of Pittsburgh) Funded Study, Summer 2012
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Audit
Data Analytics and Skeptical Actions: The Countervailing Effects of False Positives and Consistent Rewards for Skepticism by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2021
False Positives vs. Hit Rates: Does the Framing of Data Analytic Calibration Affect Auditor Skepticism? by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2020
Auditor Skepticism and Client Ill Will by Jared Eutsler (University of North Texas), Kip Holderness (West Virginia University), Jesse Robertson ((University of North Texas) and Mary Curtis (North Texas University) Funded Study, Summer 2017
Auditors are encouraged by their firms and by regulators to exercise professional skepticism during the audit, and much of the academic literature identifies the benefits of being skeptical during an audit. However, less is known about the costs of auditor skepticism — both to auditor-client relations as well as audit quality. The authors find that when audit clients perceive auditors to be more skeptical than expected, they feel ill-will toward the auditors. Consequently, client personnel are more likely to recommend switching auditors and are less forthcoming as they provide audit evidence, which can hinder auditors from performing a high-quality audit. However, the authors find that auditors can decrease client ill will by ingratiating themselves with client personnel to improve audit relations. Finally, the authors find that client personnel who are attempting to deceive auditors are less forthcoming than auditors who are not attempting to deceive auditors. Thus, practitioners who perceive individuals as withholding evidence should be aware that it may be because these individuals have something to hide. Alternatively, it may be the natural reaction of an honest individual who perceives that an auditor is being unnecessarily skeptical.
Can Audit Firm Policies Alter Juror Reactions to Auditor Professional Skepticism? by Joe Brazel (North Carolina State University), Christine Gimbar (DePaul University), Eldar Maksymov (Arizona State University), Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2017
Changing the Nature of Audit Procedures to Deter Fraud by Scott Fleming, Alyssa Ong (both at West Virginia University) Funded Study, Fall 2016
Evidencing Professional Skepticism in the Time Budget by Joe Brazel (North Carolina State University) and Christine Gimbar (DePaul University) Funded Study, Fall 2016
A Matter of Time: Reducing Constraints and Empowering Auditors to Find Fraud by Ashley Austin, Tina Carpenter, Margaret Christ, Christy Sims (University of Georgia) Funded Study, Fall 2015
Who Rewards Appropriate Levels of Professional Skepticism? by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2015
Rewarding Appropriate Professional Skepticism Regardless of the Outcome: The Effect of Supervisor Consultation by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri-Kansas City) Funded Study, Summer 2014
Identifying the Verbal and Non-Verbal Communication Behaviors of Skeptical Entry Level Auditors by Greg Trompeter and Jared Eutsler (University of Central Florida) and Anne Norris (Miami University) Funded Study, Summer 2014
The Effect of Alumni Affiliations on Auditors’ Professional Skepticism by Ashley Austin and Tina Carpenter (both at University of Georgia) Funded Study, Fall 2013
Audit Committee Financial Expert and Fraud by Sheila Thiruvadi, Huang Hua-wei, Shiyaam T and Kelly E Carter (all from Morgan State University) Data-Supported Study, Summer 2013
Hindsight Bias and Professional Skepticism: Does the End Justify the Means? by Joe Brazel and Tammie Schaefer (NC State) Funded Study, Fall 2012
Auditor Tenure and Financial Reporting Fraud Pre and Post Sarbanes-Oxley Act of 2002 by M.J. Abdolmohammadi (Bentley University) and K.N. Asare (Bryant) Data-Supported Study, Fall 2012
Fraud and Audit Opinion Modifications. Investigation of Fraud Characteristics, Resulting Opinion Modifications, and Subsequent Auditor Punishments by Erin Burrell Nickell and Jared Eutsler (both at University of Central Florida) (Completed) Data-Supported Study, Summer 2012
Financial & Non-Financial Inconsistencies/Audit Quality by Joe Brazel and Don Pagach (both at North Carolina State University) Funded Study, 2010
Quantifying Intuitions about Risk: Comparing Partners Perceived as "Risky" and "Non-Risky" by Greg Trompeter and Anne Norris (both at University of Central Florida) Funded Study, 2009
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Broker-Dealers
Slipping Through the Regulatory Cracks: Banned Brokers Selling Insurance by William Gerken and Mehrnoush Shahhosseini (University of Kentucky) Funded Study, Summer 2019
Is Broker Misconduct Contagious? Career Networks and Fraud by Financial Advisors by William Gerken and Nathaniel P. Graham (University of Kentucky) and Stephen G. Dimmock (Nanyang Technological University, Singapore) Funded Study, Fall 2013
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Collusion
Corporate Governance, Collusion and Financial Statements Fraud by Robert Davidson (Virginia Tech) Funded Study, Fall 2017
Fraud Losses, Individual and Organizational Conversion: The Intersection with Collusion by Erlina Papakroni and Richard Riley (both at West Virginia University) Data-Supported Study, Summer 2015
Collusion: Achilles’ Heel of Anti-Fraud Efforts by Dana Hermanson (Kennesaw State University), Carol Bishop (Georgia Southwestern State University) and Richard Riley (West Virginia University) Data-Supported Study, Summer 2014
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Corporate Culture
Examining the Relationship between Individual and Corporate Instability and Workplace Crime and Deviance by Emily M. Homer (Visiting Assistant Professor at the University of North Carolina Wilmington) and George E. Higgins (Professor in the Department of Criminal Justice at the University of Louisville) Data-Supported Study, Summer 2020
Executives' "Off-The-Job" Behavior, Corporate Culture, and Financial Reporting Risk by Robert Davidson (Georgetown University), Aiyesha Dey (University of Minnesota), and Abbie Smith, Funded Study, 2011
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Corporate Governance
The Association Between Business Sustainability and Financial and Non-financial Misconducts by Zabidollah Rezaee (University of Memphis) and Kehinde Mayokun Ogunade (Ph.D. student, Accounting, University of Memphis) Data-Supported Study, Summer 2021
Corporate Governance, Collusion and Financial Statements Fraud by Robert Davidson (Virginia Tech) Funded Study, Fall 2017
The Robin-Hood Effect: Broad-Based Employee Stock Option Plans and Earnings Management by Kip Holderness (West Virginia University) and Melissa F. Western (University of Utah) Funded Study, Fall 2015
Executive Equity Compensation and Accounting Fraud by Robert Davidson (Georgetown University) Funded Study, Fall 2014
Fraud and Nonprofit Governance: Evidence from the Revised Form 990 by Martha Eining (University of Utah), Kathy Hurtt (Baylor University) and Claire Richards (Zayed University) Funded Study, Fall 2014
Audit Committee Financial Expert and Fraud by Sheila Thiruvadi, Huang Hua-wei, Shiyaam T and Kelly E Carter (all from Morgan State University) Data-Supported Study, Summer 2013
Auditor Tenure and Financial Reporting Fraud Pre and Post Sarbanes-Oxley Act of 2002 by M.J. Abdolmohammadi (Bentley University) and K.N. Asare (Bryant University) Data-Supported Study, Fall 2012
Assessing Fraud Risk from Self-Regulatory Organization Disclosures by William Gerken (Auburn) and Stephen G. Dimmock (Nanyang Business School at Nanyang Technological University in Singapore) Funded Study, 2011
Best Practices in On-Boarding New Accounts for Financial Institutions – Preventing Identity Fraud and Money Laundering by Michael C. Smith, and Kim Little (Lexis Nexis) and Dr. Timothy Pearson, (West Virginia University) Funded Study, 2009
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Corruption and Bribery
Petty Corruption in Organizations: Hierarchical Analysis, by Yuriy Timofeyev (Frankfurt School of Finance & Management, Germany) Data-Supported Study, Fall 2013
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Data Analytics
Data Analytics and Skeptical Actions: The Countervailing Effects of False Positives and Consistent Rewards for Skepticism by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2021
False Positives vs. Hit Rates: Does the Framing of Data Analytic Calibration Affect Auditor Skepticism? by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2020
Data Analytics: Using Creativity and Innovation to Find Fraud by Tina Carpenter, Margaret Christ, Rich Mautz (University of Georgia) Funded Study, Fall 2017
Developing a Non-Profit Fraud Prediction Model Using Time Series Analysis by Martha Eining (University of Utah), David Hurtt, Kathy Hurtt (both at Baylor University) and Claire Richards (Zayed University) Funded Study, Fall 2017
Using Letter Analytics to Find Fraud by Nathan Mauck & Tammie Schaefer (University of Missouri, Kansas City); Richard Lanza (Practitioner) Funded Study, Fall 2016
The Impact of Big Data and Data Analytics on Finding Fraud by Ashley Austin (University of Richmond), Tina Carpenter, Margaret Christ, Christy Sims (University of Georgia) Funded Study, Fall 2016
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Deception Detection
The Complementary Influences of Genetics and Environment on Successful Lie Detection in Investigative Fraud Interviews by Chih-Chen Lee (Northern Illinois University) and Tingting (Rachel) Chung (Carlow University) Funded Study, Summer 2013
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Education
Asset Misappropriation in Education: Investigating Embezzlement in the K-12 Setting by Jared Eutsler and Lauren Eutsler (both of North Texas University) Funded Study, Summer 2019
Thanks to the ACFE’s Report to the Nations (RTTN), much is known about white-collar fraud in the business setting. However, little is known about occupational fraud in education. Eutsler and Eutsler identified approximately 2,500 news articles describing embezzlement in K-12 education during the past decade. They then compared these education frauds to frauds reported in the RTTN database. The authors find that education frauds are smaller in magnitude but last longer than RTTN frauds. In addition, fraudsters in the education field tend to be older and are more likely to be female. Finally, education frauds are more likely to involve cash or checks, which demonstrates the importance of internal controls over cash and disbursements within school systems. These results provide important information to school administrators and communities about the risk of embezzlement within local schools.Survey of Fraud Examination and Forensic Accounting Programs by Dr. Graham Peace (West Virginia University), Dr. Richard Riley (Advisory Participant Only; West Virginia University) Funded Study, Summer 2012
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Employee Deviance
Examining the Relationship between Individual and Corporate Instability and Workplace Crime and Deviance by Emily M. Homer (Visiting Assistant Professor at the University of North Carolina Wilmington) and George E. Higgins (Professor in the Department of Criminal Justice at the University of Louisville) Data-Supported Study, Summer 2020
The Dangers of Fostering Entitlement in the Workplace by Kip Holderness (West Virginia University) Funded Study, Summer 2016
A Comparison of the Proclivity to Steal from Individuals, Not-for-Profit Organizations, and For-Profit Organizations by Cynthia L. Krom (Franklin & Marshall College) Funded Study, Summer 2015
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Executives
Executives' "Off-The-Job" Behavior, Corporate Culture, and Financial Reporting Risk by Robert Davidson (Georgetown University), Aiyesha Dey (University of Minnesota), and Abbie Smith, Funded Study, 2011
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Financial Misstatements
The Association Between Business Sustainability and Financial and Nonfinancial Misconducts by Zabidollah Rezaee (University of Memphis) and Kehinde Mayokun Ogunade (Ph.D. student, Accounting, University of Memphis) Data-Supported Study, Summer 2021
The Corporate Fraud Offender: An Investigation of Personal and Organizational Attributes of Corporate Accounting Fraud/ Bryant University Honors Program by Edinaldo Tebaldi (Brynat University Senior Honors Thesis/Professor), Michael Wojcikiewicz (Honors Student) and Kwadwo Asare (Honors Faculty Advisor) Data-Supported Study, Summer 2020
Corporate Governance, Collusion and Financial Statements Fraud by Robert Davidson (Virginia Tech) Funded Study, Fall 2017
The Role of Short-Sellers in Detecting Financial Reporting Fraud by Zabihollah Rezaee (University of Memphis) and Yu Chen (Texas A&M International University) (In Progress) Data-Supported Study, Fall 2014
An Examination of Fraudulent Financial Reporting: Public versus Private Companies by Scott Fleming, Richard Riley (both from West Virginia University), Dana Hermanson (Kennesaw State University), Mary Jo Kranacher (CUNY-York College) Data-Supported Study, Summer 2012
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Financial Reporting
The Association Between Business Sustainability and Financial and Nonfinancial Misconducts by Zabidollah Rezaee (University of Memphis) and Kehinde Mayokun Ogunade (Ph.D. student, Accounting, University of Memphis) Data-Supported Study, Summer 2021
How Informative are Fraud and Non-Fraud Firms’ Earnings? by Kwadwo N. Asare (Bryant University) Data-Supported Study, Summer 2016
The Robin-Hood Effect: Broad-Based Employee Stock Option Plans and Earnings Management by Kip Holderness (West Virginia University) and Melissa F. Western (University of Utah) Funded Study, Fall 2015
An Examination of Fraudulent Financial Reporting: Public versus Private Companies by Scott Fleming, Richard Riley (both at West Virginia University), Dana Hermanson (Kennesaw State University), Mary Joe Kranacher (CUNY-York College) Data-Supported Study, Summer 2012
Executives' "Off-The-Job" Behavior, Corporate Culture, and Financial Reporting Risk by Robert Davidson (Georgetown University), Aiyesha Dey (University of Minnesota) and Abbie Smith, Funded Study, 2011
Financial & Non-Financial Inconsistencies/Audit Quality, by Joe Brazel and Don Pagach (both at North Carolina State University) Funded Study, 2010
This is one of five research monographs (white papers) commissioned by the IFP to address the following questions and issues:
- What do we currently know about the topical area?
- What research has been done?
- What are the lessons that we have learned?
- What don't we know and what are we missing?
- What additional resources are needed to do research on the topical area (additional theory, data, subjects, research methodology, etc.)?
Fraudulent Financial Reporting: How Do We Close the Knowledge Gap? by Joseph Carcello (University of Tennessee) and Dana Hermanson (Kennesaw State University) Funded Study, 2008
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Fraud Deterrence
Changing the Nature of Audit Procedures to Deter Fraud by Scott Fleming, Alyssa Ong (both at West Virginia University) Funded Study, Fall 2016
Small Business Fraud Awareness, Prevention and Detection by Val Trott Williams and Robert Kollar (both at Duquesne University) Funded Study, 2010
Best Practices in On-Boarding New Accounts for Financial Institutions – Preventing Identity Fraud and Money Laundering by Michael C. Smith and Kim Little (both at Lexis Nexis) and Dr. Timothy Pearson, (West Virginia University) Funded Study, 2009
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Fraud Prediction
Developing a Non-Profit Fraud Prediction Model Using Time Series Analysis by Martha Eining (University of Utah), David Hurtt, Kathy Hurtt (both at Baylor University) and Claire Richards (Zayed University) Funded Study, Fall 2017
Does Non-Financial Misconduct Predict Financial Misconduct? Evidence from Federal Agency Penalties by Aneesh Raghunandan (Stanford University) Funded Study, Summer 2017
The Impact of Big Data and Data Analytics on Finding Fraud by Ashley Austin (University of Richmond), Tina Carpenter, Margaret Christ, Christy Sims (University of Georgia) Funded Study, Fall 2016
What Factors Explain the Duration of Fraud? by Dahlia Robinson and Delroy Hunter (University of South Florida) Funded Study, Summer 2016
Asset Misappropriation: Analysis of Predictors of Organizational Losses by Eberhard Feess and Yuriy Timofeyev (Frankfurt School of Finance & Management) (Complete) Data-Supported Study, Fall 2014
The Role of Short-Sellers in Detecting Financial Reporting Fraud by Zabihollah Rezaee (University of Memphis) and Yu Chen (Texas A&M International University) (In Progress) Data-Supported Study, Fall 2014
General Strain Theory: Strain as a Predictor or Occupational Fraud by Timothy Bergsma (Walden University) Data-Supported Study, Fall 2013
Antecedents to Global Fraud by Chih-Chen Lee (Northern Illinois University), Tingting (Rachel) Chung (Chatham University), Sunita Mondal (University of Pittsburgh at Greensburg) Data-Supported Study, Summer 2013
Examining the Association between Psychological Measures and Risk of Fraud by Greg Trompeter and Anne Norris (both at University of Central Florida) Funded Study, 2009
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Fraud Triangle
Identifying Increased Risk for Occupational Fraud from the Economic Pressures Related to the Stages of the Industry Life Cycle by Demond Daniels and Firasat Khan (both at Metropolitan State University) Data-Supported Study, Summer 2019
Asset Misappropriation Fraud and the Economy: An Experiment by D. Kip Holderness Jr. (West Virginia University) and Jahangir Sultan (Bentley University) Funded Study, Summer 2013
An Experimental Study of Fraudulent Behavior by Michèle Belot (University of Edinburgh) and Marina Schröder (University of Magdeburg) Funded Study, 2011
Motivation of Fraudsters in Local Government by Tammy Wolter (WSCS Consulting) and Robert Smith, Funded Study, 2010
This is one of five research monographs (white papers) commissioned by the IFP to address the following questions and issues:
- What do we currently know about the topical area?
- What research has been done?
- What are the lessons that we have learned?
- What don't we know and what are we missing?
Bringing Freud to Fraud by Sridhar Ramamoorti (Kennesaw State University), Daven Morrison (Morrison Associates) and Joseph W. Koletar (FBI, Retired), Funded Study, 2008
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Government Fraud
Asset Misappropriation in Education: Investigating Embezzlement in the K-12 Setting by Jared Eutsler and Lauren Eutsler (both of North Texas University) Funded Study, Summer 2019
Thanks to the ACFE’s Report to the Nations (RTTN), much is known about white-collar fraud in the business setting. However, little is known about occupational fraud in education. Eutsler and Eutsler identified approximately 2,500 news articles describing embezzlement in K-12 education during the past decade. They then compared these education frauds to frauds reported in the RTTN database. The authors find that education frauds are smaller in magnitude but last longer than RTTN frauds. In addition, fraudsters in the education field tend to be older and are more likely to be female. Finally, education frauds are more likely to involve cash or checks, which demonstrates the importance of internal controls over cash and disbursements within school systems. These results provide important information to school administrators and communities about the risk of embezzlement within local schools.
Fraud Risk Awareness in Local Governments by Ellen L. Landgraf and Laurence E. Johnson (Loyola University Chicago) Funded Study, Fall 2014
Motivation of Fraudsters in Local Government by Tammy Wolter (WSCS Consulting) and Robert Smith, Funded Study, 2010
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Identity Theft
Assessing How Identity Thieves Obtain Identities for Exploitation by Dr. William Kresse (St. Xavier University) Funded Study, 2006
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Internal Controls
The Role of Management Override and Other Anti-Fraud Breakdowns in Fraud Cases by Carol Bishop (Georgia Southwestern State University), Dana Hermanson (Kennesaw State University) and Richard Riley (West Virginia University) Data-Supported Study, Summer 2016
The Impact of Internal Controls on the Duration of Fraud by Juan Mao (University of Texas at San Antonio) Data-Supported Study, Fall 2015
The Impact of Country Digital Infrastructure on Fraud Levels and Controls by Chih-Chen Lee (Northern Illinois University), Tingting (Rachel) Chung (Chatham University), Sunita Mondal (Slippery Rock University), and Pratyush Sharma, Data-Supported Study, Summer 2015
Assessing the Role of Control Overrides in Financial Statement Fraud Study by Dr. Robert Tillman and Michael Indergaard (both at St. John's University) Funded Study, 2006
Assessing How Procurement Fraud Suborns Officials by Nikos Passas (Northeastern University) Funded Study, 2006
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Interviews and Investigation
Machine Learning from Human Demonstration: Applications for Fraud Investigation by Stephanie Rosenthal (Chatham University) and Tingting (Rachel) Chung (William & Mary) Funded Study, Summer 2019
The Complementary Influences of Genetics and Environment on Successful Lie Detection in Investigative Fraud Interviews by Chih-Chen Lee (Northern Illinois University), Tingting (Rachel) Chung (Carlow University) Funded Study, Summer 2013
The Client Interview: Client Interpersonal Style and Trait-Based Skepticism in Accounting Students and Early Career Auditors by Greg Trompeter and Anne Norris (both at University of Central Florida) Funded Study, Summer 2013
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IT Professionals
An Examination of Fraud Led by Information Technology Perpetrators by Richard Dull and Marie Rice (both of West Virginia University) Data-Supported Study, Summer 2019
Companies increasingly rely on technology adoption, as well as professionals with the necessary skills and expertise to manage advanced technology. These information technology professionals are provided privileged access to organizational systems to complete their duties. Dull and Rice examine how frauds committed by IT perpetrators compare to frauds committed by non-IT fraudsters. They find that IT specialists’ expertise and systems access increase their capability to commit and conceal fraud. Frauds perpetrated by IT specialists occur earlier in their tenure than those of their non-specialist counterparts. In addition, IT perpetrators generate similar losses as non-IT perpetrators in shorter timeframes. Anti-fraud specialists should be aware of these important differences and consider how to better detect fraud committed by IT perpetrators.
This is one of five research monographs (white papers) commissioned by the IFP to address the following questions and issues:
- What do we currently know about the topical area?
- What research has been done?
- What are the lessons that we have learned?
- What don't we know and what are we missing?
Fraud and Forensic Accounting In a Digital Environment by Conan Albrecht (Brigham Young University) Funded Study, 2008
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Litigation
An Examination of Fraud Perpetrator Outcomes: Termination, Criminal and Civil by Erlina Papakroni and Marie Rice (both at West Virginia University) Data-Supported Study, Fall 2017
Can Audit Firm Policies Alter Juror Reactions to Auditor Professional Skepticism? by Joe Brazel (North Carolina State University), Christine Gimbar (DePaul University), Eldar Maksymov (Arizona State University), Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2017
SEC Enforcement Actions Against CPAs: What are the Outcomes Related to Licensure and Sanctions? Does the CPA’s Organizational Role Influence those Outcomes? by Cynthia Krom (Franklin & Marshall University) Data-Supported Study, Summer 2017
Fraud Response & Litigation Readiness by Patricia Johnson (Canisius College) and Linda Volonino (consultant) Funded Study, 2010
This is one of five research monographs (white papers) commissioned by the IFP to address the following questions and issues:
- What do we currently know about the topical area?
- What research has been done?
- What are the lessons that we have learned?
- What don't we know and what are we missing?
The Legal Environment and White Collar Crime / Forensic Accounting by John Gill and Mark Scott (Association of Certified Fraud Examiners) Funded Study, 2008
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Monitoring
The Effectiveness of Monitoring Mechanisms in Preventing or Detecting Occupational Fraud in Nonprofit Organizations by Angela Woodland (Montana State University) Data-Supported Study, Fall 2017
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Nonprofit Fraud
An Experimental Investigation of Nonprofit Form 990: Reporting of Significant Diversions of Assets by Andrea Scheetz (Radford University) and Aaron Wilson (Ohio University) Funded Study, Summer 2019
Developing a Non-Profit Fraud Prediction Model Using Time Series Analysis by Martha Eining (University of Utah), David Hurtt, Kathy Hurtt (both at Baylor University) and Claire Richards (Zayed University) Funded Study, Fall 2017
The Effectiveness of Monitoring Mechanisms in Preventing or Detecting Occupational Fraud in Nonprofit Organizations by Angela Woodland (Montana State University) Data-Supported Study, Fall 2017
A Comparison of the Proclivity to Steal from Individuals, Not-for-Profit Organizations, and For-Profit Organizations by Cynthia L. Krom (Franklin & Marshall College) Funded Study, Summer 2015
Fraud and Nonprofit Governance: Evidence from the Revised Form 990 by Martha Eining (University of Utah), Kathy Hurtt (Baylor University) and Claire Richards (Zayed University) Funded Study, Fall 2014
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Risk Assessment
An Audit Planning Tool for Fraud Risk Assessment: A Machine Learning Approach by Miklos Vasarhelyi (KPMG Distinguished Professor of Accounting Information Systems and Director of Rutgers Accounting Research Center and Continuous Auditing and Reporting Lab), Helen Brown-Liburd (Associate Professor, Accounting & Information Systems and Associate Director of Rutgers Continuous Auditing & Reporting Lab), Soohyun Cho (Assistant Professor, Accounting & Information Systems, Rutgers) and Ivy Munoko (Ph.D. student, Accounting Information Systems, Rutgers) Data-Supported Study, Summer 2020
Identifying Increased Risk for Occupational Fraud from the Economic Pressures Related to the Stages of the Industry Life Cycle by Demond Daniels and Firasat Khan (both at Metropolitan State University) Data-Supported Study, Summer 2019
Fraud Risk Awareness in Local Governments by Ellen L. Landgraf and Laurence E. Johnson (both at Loyola University, Chicago) Funded Study, Fall 2014
Assessing Fraud Risk from Self-Regulatory Organization Disclosures by William Gerken (Auburn University) and Stephen G. Dimmock (Nanyang Business School at Nanyang Technological University in Singapore) Funded Study, 2011
Quantifying Intuitions about Risk: Comparing Partners Perceived as "Risky" and "Non-Risky" by Greg Trompeter and Anne Norris (both at University of Central Florida) Funded Study, 2009
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Skepticism
Data Analytics and Skeptical Actions: The Countervailing Effects of False Positives and Consistent Rewards for Skepticism by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2021
False Positives vs. Hit Rates: Does the Framing of Data Analytic Calibration Affect Auditor Skepticism? by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2020
Auditor Skepticism and Client Ill Will by Jared Eutsler (University of North Texas), Kip Holderness (West Virginia University), Jesse Robertson ((University of North Texas) and Mary Curtis (North Texas University) Funded Study, Summer 2017
Auditors are encouraged by their firms and by regulators to exercise professional skepticism during the audit, and much of the academic literature identifies the benefits of being skeptical during an audit. However, less is known about the costs of auditor skepticism — both to auditor-client relations as well as audit quality. The authors find that when audit clients perceive auditors to be more skeptical than expected, they feel ill-will toward the auditors. Consequently, client personnel are more likely to recommend switching auditors and are less forthcoming as they provide audit evidence, which can hinder auditors from performing a high-quality audit. However, the authors find that auditors can decrease client ill will by ingratiating themselves with client personnel to improve audit relations. Finally, the authors find that client personnel who are attempting to deceive auditors are less forthcoming than auditors who are not attempting to deceive auditors. Thus, practitioners who perceive individuals as withholding evidence should be aware that it may be because these individuals have something to hide. Alternatively, it may be the natural reaction of an honest individual who perceives that an auditor is being unnecessarily skeptical.
Can Audit Firm Policies Alter Juror Reactions to Auditor Professional Skepticism? by Joe Brazel (North Carolina State University), Christine Gimbar (DePaul University), Eldar Maksymov (Arizona State University), Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2017
Evidencing Professional Skepticism in the Time Budget by Joe Brazel (North Carolina State University) and Christine Gimbar (DePaul University) Funded Study, Fall 2016
Who Rewards Appropriate Levels of Professional Skepticism? by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2015
Rewarding Appropriate Professional Skepticism Regardless of the Outcome: The Effect of Supervisor Consultation by Joe Brazel (North Carolina State University) and Tammie Schaefer (University of Missouri, Kansas City) Funded Study, Summer 2014
Identifying the Verbal and Non-Verbal Communication Behaviors of Skeptical Entry Level Auditors by Greg Trompeter and Jared Eutsler (University of Central Florida) and Anne Norris (Miami University) Funded Study, Summer 2014
The Effect of Alumni Affiliations on Auditors’ Professional Skepticism by Ashley Austin and Tina Carpenter (both at University of Georgia) Funded Study, Fall 2013
The Client Interview: Client Interpersonal Style and Trait-Based Skepticism in Accounting Students and Early Career Auditors by Greg Trompeter and Anne Norris (both at University of Central Florida) Funded Study, Summer 2013
Hindsight Bias and Professional Skepticism: Does the End Justify the Means? by Joe Brazel and Tammie Schaefer (both at North Carolina State University) Funded Study, Fall 2012
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Technology
Assessing How Identity Thieves Obtain Identities for Exploitation by Dr. William Kresse (St. Xavier University) Funded Study, 2006
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Whistleblowing
Cultural Effects on Whistleblowing Concerning Fraud by Rhonda Gilreath (Tiffin University) Data-Supported Study, Summer 2016
An Examination of Whistle-Blowing in Fraudulent Organizations by Chad Albrecht and Chris Skousen (both at Utah State University) Data-Supported Study, Fall 2012