Ritualistic Exploitation: Fraud Offender Perspectives on Auditing and Auditors

Purpose
This study explores the views of serious fraud offenders in Australia on their auditor interactions. It examines factors that shape their sense of invulnerability to audits and how this influences their strategies for concealing offending.

Design/methodology/approach
The analysis is based on interviews with 23 serious occupational fraud offenders in Australia who engaged with auditors during their offences. These accounts were examined to identify common themes regarding offenders’ perspectives on audit practices and the concealment strategies they consequently employed, drawing on insights from impression management theory and literature.

Findings
Offender accounts revealed structural and operational factors in auditing that contribute to a sense of invulnerability, including stable audit programs, an audit procedure focus, good faith assumptions, engagement pressures and auditor inexperience. We also present a taxonomy of impression management techniques offenders used with auditors, categorised as ingratiation, exploiting time, bamboozling, supplication and instrumental aggression.

Originality/value
This study presents an offender-centred view on audit vulnerabilities, revealing how ritualistic elements of auditing present opportunities for fraud offenders to manipulate impressions and prolong concealment. It emphasises the importance of de-ritualising audit practices and enhancing training for auditors in deception and concealment methods.