Investigating the Effect of Self-Control Learning Strategies on Financial Fraud Risk Assessment

Subject Areas : Financial and Behavioral Researches in Accounting

reza  nematikoshteli ¹ (Assistant Professor, Department of Accounting, islamshahr Branch, Islamic Azad University, islamshahr, Iran.)

Received: 2021-11-29 Accepted : 2021-12-15 Published : 2021-11-22

Keywords: Financial Fraud Risk Assessment, Weinstein and Hume Theory, Self-Control Learning Strategies, Auditors,

Abstract :

The purpose of this study was to investigate the effect of Weinstein and Hume's self-control learning strategies on financial fraud risk assessment. Self-control learning strategies are all psychological efforts to control a person's processes, functions, and inner state that the learner uses during learning. Therefore, its purpose is to help learn, organize, store knowledge and skills, as well as facilitate their use in the future. Weinstein and Hume's self-control learning strategies include self-control strategies for mental training, semantic development, and organization. The statistical sample of the research includes 519 auditors working in auditing firms, members of the Society of Certified Public Accountants of Iran, and the Auditing Organization in 2021, who were selected by an available sampling method. The research method is a descriptive survey and the instrument used in the research is a standard questionnaire. to statistically analyze the data and test the hypotheses, structural equation modeling was used using LISREL software. The results show that there is a significant relationship between auditors' self-control learning strategies by Weinstein and Hume method and financial fraud risk assessment. Also, self-control learning strategies, mental training, semantic development, and organization have the greatest impact on financial fraud risk assessment, respectively.

References:

Antonanzas, J. L., & Lorente, R. (2017). Study of learning strategies and cognitive capacities in hearing and non-hearing pupils. Procedia-Social and Behavioral Sciences, 237, 1196-1200.

Abdelhakeem, A., Haj Haron, K. H., & Masron, T. A. (2017). Relationship between internal Shariah audit characteristics and its effectiveness. Humanomics, 33 (2), 221-238.

Ademola, L. S., Ayoib, B. C. A., & Popoola, O. J. M. (2017). The Forensic Accountants Skills and Ethics on Fraud Prevention in the Nigerian Public Sector. Academic Journal of Economic Studies, 3 (4), 77-85.

Brasel, K. R., Hatfield, R. C., Nickell, E. B., & Parsons, L. M. (2019). The Effect of Fraud Risk Assessment Frequency and Fraud Inquiry Timing on Auditors Skeptical Judgments and Actions. Accounting Horizons, 33 (1), 1-15. 

Berger, J. L., & Karabenick, S. A. (2011). Motivation and students’ use of learning strategies: Evidence of unidirectional effects in mathematics classrooms. Learning and Instruction, 21 (3), 416-428.

Brown, J. O., Hays, J., & Stuebs, M. T. (2016). Modeling accountant whistleblowing intentions: applying the theory of planned behavior and the fraud triangle. Accounting and the Public Interest, 16 (1), 28-56.

Co‍‍‍‍le, J., Log‍‍‍‍an, T. K., & W‍‍‍‍al‍‍‍ker, R. (20‍‍‍11). ‍s‍‍‍ocial ex‍‍‍clusion, pe‍‍‍‍rsonal contr‍‍‍ol, se‍‍‍lf-regu‍‍‍‍lation, an‍‍‍‍d stre‍‍‍‍ss am‍‍‍‍ong subs‍‍‍tan‍‍‍‍ce Ab‍‍‍‍use Tre‍‍‍atm‍‍‍‍ent cli‍‍‍ents. d‍ru‍‍‍g and Alc‍‍‍‍ohol De‍‍‍‍‍‍‍‍‍pendence, 11‍‍‍3 (1), 13- 20.

Chan, D. (1996). Cognitive misfit of Problem-solving style at work: A facet of person-organization fit. Organization Behavior and Human Decision Processes, 68 (3), 194-207.

Cuixin, P. (2012). Self-regulated Learning Behavior of College Students of Science and their Academic Achievement. Physics Procedia, 33.1446-1450.

Duff, A. (2004). The Role of Cognitive Learning Styles in Accounting Education: Developing Learning Competencies. Journal of Accounting Education, 22 (1), 29-52.

Dembo, M. H. (2002). Applying Educational Psychology. (5^th ed), New York: Longman.

Erfani, N. (2016). Developing Measurement Model of Cognitive and Metacognitive Learning
Strategies, Quarterly Journal of Research in School and Virtual Learning, 3 (12), 7-16. (In Persian)

Fuller, L. R., & Kaplan, S. E. (2004). A note about the effect of auditor cognitive style on task performance. Behavioral Research in Accounting, 16 (1) ,131-143.

Hamilton, E. L. (2016). Evaluating the intentionality of identified misstatements: how perspective can help auditors in distinguishing errors from fraud. Auditing: A Journal of Practice & Theory, 35 (4), 57-78.

Hunt, R. R., & Ellis, H. C. (2003). Fundamentals of Cognitive Psychology. 7th Edition, McGraw-Hill Humanities.

Hooman, H. A. (2016). Modeling Structural Equations Using LISREL Software (with corrections), (6^th Ed), Samat Publications. (In Persian)

Hassan, O., & Giorgioni, G. (2019). The impact of corruption on analyst coverage. Managerial Auditing Journal, 34 (3), 305-323.

Halbouni, S. S. (2015). The Role of Auditors in Preventing, Detecting and Reporting Fraud: The Case of the United Arab Emirates (UAE). International Journal of Auditing, 19 (2), 117-130.

Hopwood, W. S., Leiner, J. J., & Young, G. R. (2008). Forensic Accounting and Fraud Examination. New York, NY: McGraw-Hill/Irwin.

Knapp, C. A., & Knapp, M. C. (2001). The effects of experience and explicit fraud risk assessment in detecting fraud with analytical procedures. Accounting. Organizations, and Society, 26 (1), 25-37.

Kuarui, R., Momeni, S., & Haji Zinaalaabedini, M. (2015). Investigating the Relationship between Learning Strategies and Extra-Learning Strategies with Information-Behavior Behavior. Journal of Epistemological Studies, 2 (5), 59-78. (In Persian).

Lefrancois, G. R. (1997). Psychology for Teaching. 9^th ed, Belmont, CA: Wadsworth Pub. Co.

Margunayasa, I. G., Dantes, N., Marhaeni, A., & Suastra, I. W. (2019). The Effect of Guided Inquiry Learning and Cognitive Style on Science Learning Achievement. International Journal of Instruction, 12 (1), 737-750.

Nemati Koshteli, R., Hamidian, M., Jafari, S., & Srraf, M. (2020). The effect of auditors' cognitive styles on fraud risk assessment: Test of Kolb Experimental Learning Theory. Journal of Management Accounting and Auditing Knowledge, 9 (34), 253-275. (In Persian)

Nikkar, B., Azaadi, K., BaniMahd, B., & BagherSalimi, S. (2020). Psychological Empowerment and Fraud Warning in the Auditing Profession: A Test of Psychological Security Theory. Journal of Management Accounting and Auditing Knowledge, 9 (34), 47-58. (In Persian)

Persons, O. S. (2011). Using Financial Statement data to Identify Factors Associated with Fraudulent Financial Reporting. The Journal of Applied Business Research, 11 (3), 38-46.

Pourhydari, O., & Bazrafshan, S. (2012). The Effect of Auditor's Individual Characteristics in Nomination the Importance of Fraud Risk Substrates. Journal of Financial Accounting Knowledge, 2 (1), 28-52. (In Persian).

 Pajares, F. (2002). Overview of Social-cognitive theory and of self-efficacy. Available at: www.uky.edu/~eushe2/Pajares/eff.html.

Pha‍‍‍‍n, H. P. (20‍‍‍10). Cr‍‍‍‍itical thi‍‍‍‍‍‍‍nking as a se‍‍‍lf-re‍‍‍gul‍‍atory pr‍‍‍oc‍‍‍ess c‍‍‍ompon‍‍‍‍‍ent in teachi‍‍‍‍‍‍‍‍‍‍‍‍‍‍ng and learni‍‍‍‍‍‍ng. Ps‍‍‍‍‍‍‍icothe‍‍ma, 22 (2), 28‍‍4-292.

Pincus, K. V. (1989). The Efficacy of a Red flags questionnaire for Assessing the Possibility of Fraud. Accounting Organizations and Society, 14 (1-2), 153-163.

Raslan, I., Hegazy, M., & Eldawla, M. K. (2017). Quality Control Elements and Auditor Fraud Risk Assessment: An Experimental Study. Journal of Accounting and Finance, 16 (2), 151-176.

Reurink, A. (2018). Financial fraud: A literature review. Journal of Economic Surveys, 32­(5), 1292-1325.

Ramos, M. (2003). Auditors' responsibility for fraud detection. Journal of Accountancy, 195 (1), 28-36.

Rezaee, Z., & Wang, J. (2018). Relevance of big data to forensic accounting practice, and education. Managerial Auditing Journal, 34 (3), 268-288.

Rezaee, Z., & Riely, R. (2009). Financial Statement Fraud, Prevention, and Detection (2^nd ed) Wiley publication. Chapter 3, 44-68.

Sadgalia, I., Saela, N., & Benabbou, F. (2019). Performance of machine learning techniques in the detection of financial frauds. Second International Conference on Intelligent Computing in Data Sciences. 148, 45-54.

Saeidipour, B., & Mirmoeini, F. S. (2015), Studying Effectiveness of Teaching Components of     Self-Directed Learning (Based on Pintrich's Model), on Intrinsic Valuation and Mathematics Mark. Journal of Research in School Learning, 2 (7), 53-64. (In Persian)

Shue, C. L., Jau, M. S., Sang, B. T., Tzu, L. L., & Weiwei, D. (2016). A Comprehensive Survey of Government Auditors Self-Efficacy and Professional Development for Improving Audit Quality. Springer Plus, 5(1), 1-25.

Samuel, N. N., Samuel, N. K., & Peter, W. K. (2020). Risk Assessment and Fraud Prevention in Banking Sector. The Journal of Social Sciences Research, 6 (1), 13-20.

Tang, S., Huang, S., Zhu, J., Huang, R., Tang, Z., & Hu, J. (2019). Financial self-efficacy and disposition effect in investors: The mediating role of versatile cognitive style, https://doi.org/10.3389/fpsyg.2018.02705, page 6.

Urmetzer, S., Lask, J., Vargas-Carpintero, R., & Pyka, A. (2020). Learning to change: Transformative knowledge for building a sustainable bioeconomy. Ecological Economics, 167 (1), 106-135.

Weinstein, C. E., & Hume, L. M. (1998).  Study strategies for lifelong learning (Psychology in the Classroom). (1st Edition), Washington D.C: American psychology Association.

West, J., & Bhattacharya, M. (2016). Intelligent financial fraud detection: A Comprehensive Review. Computers & Security, 57, 47-66.

Wells, J. T. (2005). Accountants need help fighting the war on fraud, ACFE Association of Certified Fraud Examiners, ACFE founder urges anti-fraud education.

Weinstein, C. E., & Mayer, R. E. (1986). The teaching of learning strategies, In M. Wittrock (Ed.). The handbook of Research on Teaching, New York: Macmillan: 315-327.

Zydney, J. M., Warner, Z., & Angelone, L. (2020). Learning through experience: Using design-based research to redesign protocols for blended synchronous learning environments. Computers & Education, 143 (1). 103-125.