Exploring the Relationship Between Auditor Judgment and Detection of Complex Financial Irregularities
Posted: Dec 07, 2024
Abstract
The detection of financial irregularities represents a cornerstone of audit quality and financial market integrity. While substantial research has examined various aspects of auditor performance, the cognitive mechanisms underlying auditor judgment in complex fraud scenarios remain inadequately understood. Traditional approaches have emphasized technical proficiency, regulatory frameworks, and procedural methodologies, yet persistent audit failures in detecting sophisticated financial manipulations suggest fundamental gaps in our comprehension of the judgment processes involved. This research addresses this critical void by introducing an innovative neurocognitive framework that bridges auditing practice with cognitive neuroscience. Contemporary financial markets are characterized by increasing complexity in business transactions, financial instruments, and reporting structures. This complexity creates fertile ground for sophisticated irregularities that evade conventional detection methods.
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