A Task-Centered, Multiple Method Approach To Teaching Fraud Risk Assessment

Abstract

This manuscript provides an approach to teaching fraud risk assessment that is based on an analysis of the task and relevant research in education, cognitive psychology, and artificial intelligence. Fraud risk assessment (FRA) in financial reporting is an important and difficult task that must be performed in every financial statement audit. When auditors fail to detect fraudulent financial reporting (FFR), they are likely to become targets of shareholder and creditor litigation. Although FFR has a low occurrence rate considering the large number of financial statement audits conducted, it has a devastating impact on the investors, creditors and the profession.