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A Field Investigation of Auditors’ Use of Brainstorming in the Consideration of Fraud
Joseph F. Brazel,
North Carolina State University
Tina D. Carpenter, University of Georgia
J. Gregory Jenkins, Virginia Polytechnic Institute and State University
ABSTRACT. Audit standards require auditors to conduct a brainstorming session on each audit engagement so that engagement team members can discuss the potential for fraud and how the team might respond to the risk of fraud. Little is known about how this brainstorming session takes place or how it affects the auditor’s consideration of fraud. This paper reports the results of a survey of audit professionals regarding actual brainstorming sessions. Our results suggest that, as expected, fraud risk factors were correlated with fraud risk assessments, but the quality of brainstorming sessions was not a significant factor in the relation between factors and risk assessments. Interestingly, however, the overall quality of the brainstorming session positively moderated the relationship between fraud risk assessments and related testing.
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