The study examines how an individual's level of fraud detection proficiency (an individual possessing formal fraud education or training, informal fraud training, fraud task-specific experience, and /or fraud-related certifications) impacts their performance on fraud risk assessments and modification of audit plans. Further, it explores which of the fraud detection proficiency dimensions are valuable for auditors in situations of high and low levels of fraud risk and how these characteristics interact with professional skepticism. This, as well as the effectiveness and efficiency of the procedures selected, are addressed using a survey-based scenario where one case is embedded with a financial statement fraud and the other is not. Tobit and ordered logit regression models are used to evaluate a sample of 40 auditors and 10 forensic professionals with varying levels of fraud-related experiences, education, training, and certifications against a benchmark panel. Results demonstrate fraud certifications are effective in fraud risk assessments, are not effective in audit plan modifications, and on average those individuals tend to over-audit. In addition, fraud-related task-specific experience improves audit plan modification effectiveness. Third, including professional skepticism as an interaction is more reflective of the variable's nature, with results supporting interactions with fraud certifications and informal fraud training in the fraud risk assessment model and formal fraud training in the audit plan modifications model. Finally, individuals of higher rank, in addition to those with fraud certifications, are more likely to over-audit, while individuals in the no fraud scenario are more likely to under-audit. This study contributes to the academic literature with regard to a subset of the FJDM proposed by Hammersley (2011) validating professional skepticism as an integral variable in the model, particularly as an interaction variable and with regard to the impacts of fraud certifications and fraud-related task-specific experience. The study also contributes by providing evidence, which indicate lower fraud risk situations are prone to assessing fraud risk less effectively and under-auditing. Finally, this study also contributes a new measure for direct fraud-related experience, which captures more details regarding applicable task-specific experiences. / Ph. D.

Fraud risk assessment is an important audit process that has a direct impact on the effectiveness of auditors' fraud detection in an audit. However, prior literature has shown that auditors are generally poor at assessing fraud risk. The Public Company Accounting Oversight Board (PCAOB) suggests that auditors may improve their fraud risk assessment performance by adopting a fraud specialist mindset. A fraud specialist mindset is a special way of thinking about accounting records. While auditors think about the company's recorded transactions in terms of the availability of supporting documentations and the authenticity of the audit trail, fraud specialists think instead of accounting records in terms of the authenticity of the events and activities that are behind the reported transactions. Currently there is no study that has examined the effects of the fraud specialist mindset on auditors' fraud risk assessment performance. In addition, although recent studies have found that fraud specialists are more sensitive than auditors in discerning fraud risk factors in situation where a high level of fraud risk is present, it remains unclear whether the same can be said for situation where the risk of fraud is low. Thus, the purpose of my dissertation is to examine the effects of fraud specialist and audit mindsets on fraud risk assessment performance. In addition, I examined such effects on fraud risk assessment performance in both high and low fraud risk conditions. The contributions of my dissertation include being the first to experimentally examine how different mindsets impact fraud-related judgment. The results of my study have the potential to help address the PCAOB's desire to improve auditors' fraud risk assessment performance though the adoption of the fraud specialist mindset. In addition, my study contributes to the literature by exploring fraud-related problem representation as a possible mediator of mindset on fraud risk assessment performance. I executed my dissertation by conducting an experiment in which mindset (fraud specialist or audit) was induced prior to the completion of an audit case (high or low in fraud risk). A total of 85 senior-level accounting students enrolled in two separate auditing classes participated in my study. The results from my experimental provide empirical support that it is possible to improve auditors' fraud risk assessment through adapting the fraud specialist mindset. My study also provides preliminary evidence that individuals with the fraud specialist mindset developed different problem representations than those with the audit mindset.

<div>This research analyzes over 60,000 awarded highway contracts from 18 states throughout the United States. Analysis was performed on the state and aggregate level. The contracts were awarded from the years 2008 through 2018. Statistical analysis utilizing Pearson's Correlation and Ordinary Least Squares regression for each sample was performed to identify each variables relationship between the budget and awarded values.</div><div>The research examined effects of economic indicators, contractor descriptors and yearly/seasonal adjustments These variables included DBE Participation Goal, Number of Bidders, Project Dollar Value, Project Duration, Unemployment Rate, S&P 500 Index, Volatility Index, quarter, and year of project award. The results were examined by using a combination of simple statistical summaries and econometric coefficients called a cost vector. <br></div><div>Summary statistics observed Bid Difference at 8.5% below the Engineer's Estimate. The study observed DBE Participation Goals averaged 3.74% of the value of contracts, with an observed average of 4.5 bidders per contract. <br></div><div>The research determined that 55% of observed states had a positive significant correlation with DBE Participation Goal and Bid Difference. This correlation translated to nearly $80 million in additional cost. In addition, the research determined that all 19 groups in this study had a negative significant correlation with the Number of Bidders. The correlation translated to a savings of nearly $500 million. <br></div>