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Perceived effectiveness of fraud detection audit procedures in a stock and warehousing cycle: Additional evidence from Barbados

Alleyne, Philmore., Persaud, Nadini., Alleyne, Peter., Greenidge, Dion., & Sealy P

Managerial Auditing Journal





Barbadoswarehousingstock controlfraudauditingdeveloping countries


Purpose – The purpose of this paper is to explore perceptions of fraud detection techniques in the stock and warehouse cycle in Barbados. Design/methodology/approach – The study uses a self-administered questionnaire, adapted and modified from Owusu-Ansah et al. The sample is comprised of 64 auditors. The study examines the perceived effectiveness of audit procedures, the influence of size of the audit firm, and the level of audit experience in the choice of specific audit procedures. Findings – The study indicates that there is a moderate to high perceived effectiveness of standard audit procedures in the detection of fraud in the stock and warehousing cycle in Barbados and that the majority of the “more effective” audit procedures can be classified as field research techniques that are more direct in obtaining evidence. It is found that auditors from larger firms reported higher means for audit procedures. There are mixed findings with respect to the significant relationship between level of auditing experience of auditors and perceived effectiveness of fraud detection techniques. The study also indicates that males consistently rated the level of effectiveness of audit procedures higher than females. Research limitations/implications – Due to the relatively small sample size, these findings should be interpreted with caution. Nonetheless, the findings of this study do indicate that auditing procedures in this developing country are on par with those of developed countries. Practical implications – This paper serves to inform audit-related policies and regulation on the potential threats within the stock and warehouse cycle. Originality/value – This paper contributes to the limited body of research on fraud detection within the stock and warehouse cycle in small developing countries.



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