arbiter
JournalsPricingAccount

Audit Characteristics and the Likelihood of Fraudulent Financial Reporting

Rúbia Frehner Poffo et al.

Revista Brasileira de Gestão de Negócios2025https://doi.org/10.7819/rbgn.v27i02.4299article
AJG 1
Weight
0.50

What the paper says

Analyze the relationship between audit characteristics and the likelihood of occurrence of financial reports suspected of fraud in companies. Theoretical framework – Agency Theory Design/methodology/approach – Descriptive, documentary and quantitative research, using the methods of Approximate Set Theory, k-means cluster analysis and logistic regression. The sample consists of 211 Brazilian companies listed on [B]3, considering the years between 2016 and 2021, from the Refinitiv database. Findings – The results indicate that Big Four audits reduce the chances of fraudulent-like financial reporting (FLFR) in Brazil, providing greater security to stakeholders. However, changing auditing practices and the financial independence of the audit firm do not significantly influence the detection of FLFR. On the other hand, qualified opinions increase the chances of FLFR by 3.625 times, and with a disclaimer of opinion, by 62.22 times, highlighting such opinions as the main indicators for identifying FLFR. Research Practical & Social implications – Considering the number of publicly traded companies that make up [B]3, and the number of shares that are traded daily in Brazil, there is a need to understand the relationship between the characteristics of the audit and the FLFR in the Brazilian organizational scenario. Originality/value – The research differs from others, as it shows that the types of opinions issued by auditors may indicate the possibility of FLFR occurring.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.7819/rbgn.v27i02.4299

Or copy a formatted citation

@article{rúbia2025,
  title        = {{Audit Characteristics and the Likelihood of Fraudulent Financial Reporting}},
  author       = {Rúbia Frehner Poffo et al.},
  journal      = {Revista Brasileira de Gestão de Negócios},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.7819/rbgn.v27i02.4299},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Audit Characteristics and the Likelihood of Fraudulent Financial Reporting

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.