The Effect of Audit Quality on Fraud Reduction

Ahmed Sarwar Khan (Management and Science University)
Maryam Yousefi Nejad (Oxford Brookes University, United Kingdom)
Tahani Ali Hakami (Jazan University, Saudi Arabia)
Aza Azlina Md Kassim (Management, and Science University)
Jaizah Othman (Princess Nourah Bint Abdulrahman University Riyadh, Saudi Arabia)

International Business and Accounting Research Journal
Vol 7, No 2 (2023): July 2023

The detection and investigation of financial fraud has become a worldwide concern, with auditors and accountants playing a pivotal role in identifying and examining such fraudulent activities. This role is especially crucial in developing countries, where fraudulent practices are more prevalent due to the lack of stringent regulations and supervision. The failure of some countries to adopt International Financial Reporting Standards (IFRS) has raised concerns in recent years. This study is a conceptual paper to explore the relationship between audit quality and fraud reduction. The study's results have important implications for developing countries, which have been demonstrated to be more vulnerable to fraud than developed countries. This research contributes to the current knowledge about the role of audit quality in mitigating fraud and highlights the need for auditors and accountants to be proactive in identifying and investigating financial fraud.