Measurement and combination of red flags to assess the risk of management fraud: A fuzzy set approach

Managerial Finance

Volumn 23, Issue 6, 1997, Pages 35-48

  Deshmukh, Ashutosh ^a   Romine, Jeff ^b   Siegel, Philip H ^c  

^a BEHREND COLLEGE   (United States)

^b TRUMAN STATE UNIVERSITY   (United States)

^c MONMOUTH UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 85019464364     PISSN: 03074358     EISSN: 17587743     Source Type: Journal    
DOI: 10.1108/eb018629     Document Type: Article

References (25)

1. Albrecht, S., and Romney M. (1980). “Auditing Implications Derived from a Review of Cases and Articles Relating to Fraud,” Auditing Symposium V. Proceedings of the 1980 Touche Ross / University of Kansas Symposium on Auditing Problems, 101-19.
2. Albrecht, S., and Romney M. (1986). “Red Flagging Management Fraud: A Validation.” Advances in Accounting 3, 323-33.
3. American Institute of Certified Public Accountants (AICPA) (1975). “Statement on Auditing Standards No. 6, Related Party Transactions.” New York, NY: AICPA.
4. American Institute of Certified Public Accountants (AICPA) (1977). “Statement on Auditing Standards No. 16, The Independent Auditor’s Responsibility for the Detection of Errors or Irregularities.” New York, NY: AICPA.
5. American Institute of Certified Public Accountants (AICPA) (1977). ‘Statement on Auditing Standards No. 17, Illegal Acts.” New York, NY: AICPA.
6. American Institute of Certified Public Accountants (AICPA) (1989). “Statement on Auditing Standards No. 53, The Auditor’s Responsibility to Detect and Report Errors and Irregularities” New York, NY: AICPA.
7. Bell, T., S. Szykowny, and Willingham J. (1993). “Development of a Decision Aid for Assessing the Likelihood of Fraudulent Financial Reporting.” Working paper, KPMG Peat Marwick.
8. Coopers & Lybrand (1977). Newsletter March-April: 1-10.
9. Costello, J. (1991). “The Auditor’s Responsibilities for Fraud Detection and Disclosure:Do the Auditing Standards Provide Safe Harbor?” Maine Law Review 43, 265-305.
10. Cox, E. (1994). Fuzzy Systems Handbook. Academic Press, Inc., Cambridge, MA 02139
11. Deshmukh, A., and Romine J. (1995). Assessing the Risk of Management Fraud using Red Flags: A Fuzzy Number Based Spreadsheet Approach. Forthcoming in Journal of Accounting and Computers.
12. de Korvin, A., P. Siegel, and Strawser J. (1995). “An Application of Control System to Cost Variance Analysis.” Managerial Finance 3, 18-39.
13. de Korvin, A., P. Siegel, and Agrawal S. (1995). “An Application of Fuzzy Sets to Cost Allocation.” Studies in Managerial and Financial Accounting 3, 55-71.
14. Fanning, K., K. Cogger, and Srivastava R. (1995). “Detection of Management Fraud: A Neural Network Approach.” Intelligent Systems in Accounting, Finance, and Management 4:113-26.
15. Kaufmann, A., and Gupta M. (1991). Introduction to Fuzzy Arithmetic: Theory and Applications. Van Nostrand Reinhold.
16. Kelly, L. (1984). “Formulation of Accountant’s Materiality Decision through Fuzzy Set Theory.” TIMS/Studies in Management Sciences 20, 489-494.
17. Loebbecke, J., and Willingham J. (1988). “Review of SEC Accounting and Auditing Enforcement Releases,” Working paper, KPMG Peat Marwick.
18. Loebbecke, J., M. Eining, and Willingham J. (1989) “Auditor’s Experience with Material Irregularities: Frequency, Nature, and Detectability.” Auditing: A Journal of Practice & Theory 9, 1-28.
19. Palmrose, Z. (1991). “Trial of Legal Disputes Involving Independent Auditors: Some Empirical Evidence.” Journal of Accounting Research 29, 149-185.
20. Price Waterhouse. (1985). Challenges and Opportunity for the Accounting Profession:Strengthening the Public’s Confidence. Price Waterhouse.
21. Siegel, P., A. de Krovin, and Omer K. (1993). “Detection of Irregularities by Auditors:A Rough Set Approach.” Indian Journal of Accounting 24, 44-54.
22. Siler, W. (1995). “Fuzzy Reasoning: A New Software Technology.” PCAI, March/April, 22-24.
23. Touche Ross & Co. (1974). Red Flags for Fraud. Audit Technical Letter No. 149.
24. Zadeh, L. (1965). “Fuzzy Sets,” Information and Control 8, 338-52.
25. Zebda, A. (1984) “The Investigation of Cost Variances: A Fuzzy Set Theory Approach,” Decision Sciences 15, 359-89.