A Test of Audit Deterrent to Financial Reporting Irregularities Using the Randomized Response Technique.

Key Points

• To examine how perceptions of auditing affect the likelihood of financial reporting irregularities.
• Conducted an experiment utilizing the randomized response technique.
• Assessed both internal and external auditing perceptions.
• Measured the potential commission of financial reporting irregularities.
• Identified deterrence effects from both internal and external auditing.
• Highlighted managers' perceptions influencing reporting behavior.