Auditing standards require external auditors to provide reasonable assurance that the financial statements are free from material misstatements, either due to fraud or error. Inability of the external auditors to dete...Auditing standards require external auditors to provide reasonable assurance that the financial statements are free from material misstatements, either due to fraud or error. Inability of the external auditors to detect the material misstatements, particularly fraud, may expose them to litigation. The present study aims to examine the effect of personality factors （i.e., neuroticism, extraversion, conscientiousness, openness to experience and agreeableness） on the external auditors＇ ability to detect the likelihood of fraud. An experimental approach is adopted by sending case materials to audit partners and audit managers attached to auditing firms operating in Malaysia. The result shows that personality does not have a positive effect on the external auditors＇ ability to detect the likelihood of fraud.展开更多
文摘Auditing standards require external auditors to provide reasonable assurance that the financial statements are free from material misstatements, either due to fraud or error. Inability of the external auditors to detect the material misstatements, particularly fraud, may expose them to litigation. The present study aims to examine the effect of personality factors （i.e., neuroticism, extraversion, conscientiousness, openness to experience and agreeableness） on the external auditors＇ ability to detect the likelihood of fraud. An experimental approach is adopted by sending case materials to audit partners and audit managers attached to auditing firms operating in Malaysia. The result shows that personality does not have a positive effect on the external auditors＇ ability to detect the likelihood of fraud.
