Exploring external auditors’ perceptions of the motivations behind management fraud in Egypt – a mixed methods approach
ISSN: 0268-6902
Article publication date: 12 December 2017
Issue publication date: 19 January 2018
Abstract
Purpose
This paper aims to explore the perceptions of external auditors’ on the motivations behind management fraud, which could increase the likelihood of detecting financial reporting fraud.
Design methodology/approach
Mixed research methods, namely, an online questionnaire and semi-structured interviews, were used for data collection from external auditors in Egypt.
Findings
The findings revealed that the desire to get remuneration or bonuses and the need to secure financing are the most common motivations behind management fraud in Egypt. The current study also found other motivations behind management fraud that could be more specific to the Egyptian context.
Research limitations/implications
Gaining access to small- and medium-size audit firms, in particular, was very difficult. This study did not use factor analysis to determine whether differences exist among the motives/factors, which should be the focus of future studies.
Practical implications
This study was the first to provide empirical evidence on the motivations behind management fraud in the context of a developing nation such as Egypt. The findings of this study could be important for Egyptian regulators and external auditors who wish to reduce fraud risks in their own country. The findings could also help external auditors across the globe in recognising the signs that can trigger management motivations to engage in financial reporting fraud, which in turn could increase the likelihood of detecting financial reporting fraud.
Originality/value
This study was the first to provide empirical evidence on the motivations behind management fraud in the context of a developing nation such as Egypt. The findings of this study could be important for Egyptian regulators and external auditors who wish to reduce fraud risks in their own country. The findings could also help external auditors across the globe in recognising the signs that can trigger management motivations to engage in financial reporting fraud, which in turn could increase the likelihood of detecting financial reporting fraud.
Keywords
Citation
Kassem, R. (2018), "Exploring external auditors’ perceptions of the motivations behind management fraud in Egypt – a mixed methods approach", Managerial Auditing Journal, Vol. 33 No. 1, pp. 16-34. https://doi.org/10.1108/MAJ-11-2016-1470
Publisher
:Emerald Publishing Limited
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