A conceptual discussion on the external auditor's personality and detection of fraud

Nahariah Jaffar, Arfah Salleh, Takiah Mohd Iskandar, Hasnah Haron

    Research output: Contribution to journalArticle

    2 Citations (Scopus)

    Abstract

    The collapse of Enron has again shed some unfavourable lights on the role that external auditors play in the detection of fraud (Thomas & Clements, 2002). Inability to detect fraud may lead to a litigation action being taken against the external auditor (Palmrose, 1987). Previous research found that personality factors may be associated with job performance (Robertson, Baron, Gibbons, MacIver, & Nyfield, 2000; Barrick & Mount, 1991). Ashton (1999) suggested that certain innate personality factors can be used to predict an individual's performance, specifically the performance of auditors. This paper attempts to determine factors that may have impact on the ability of external auditors to detect the likelihood of fraud. Robertson and Callinan (1998) stated that the emergence of "Big five" factors of personality has increased the interest for researchers to examine its role. The "Big five" factors of personality are: (1) neuroticism, (2) extraversion, (3) conscientiousness, (4) openness and (5) agreeableness. This paper will specifically investigate effects of these five factors of personality on the external auditors' ability to detect the likelihood of fraud. In this paper a discussion on the development of a conceptual framework for the external auditor's personality and detection of fraud is presented.

    Original languageEnglish
    Pages (from-to)66-76
    Number of pages11
    JournalEuropean Journal of Social Sciences
    Volume4
    Issue number1
    Publication statusPublished - Nov 2006

    Fingerprint

    fraud
    personality
    personality traits
    job performance
    neuroticism
    ability
    performance

    Keywords

    • Big five
    • Fraud detection
    • Personality factors

    ASJC Scopus subject areas

    • Social Sciences(all)

    Cite this

    A conceptual discussion on the external auditor's personality and detection of fraud. / Jaffar, Nahariah; Salleh, Arfah; Iskandar, Takiah Mohd; Haron, Hasnah.

    In: European Journal of Social Sciences, Vol. 4, No. 1, 11.2006, p. 66-76.

    Research output: Contribution to journalArticle

    Jaffar, N, Salleh, A, Iskandar, TM & Haron, H 2006, 'A conceptual discussion on the external auditor's personality and detection of fraud', European Journal of Social Sciences, vol. 4, no. 1, pp. 66-76.
    Jaffar, Nahariah ; Salleh, Arfah ; Iskandar, Takiah Mohd ; Haron, Hasnah. / A conceptual discussion on the external auditor's personality and detection of fraud. In: European Journal of Social Sciences. 2006 ; Vol. 4, No. 1. pp. 66-76.
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