What is the societal impact of fraud? What percentage of auditors have actually encountered fraud in their career? And how has the fraud topic evolved in the area of auditing, over the past decades? All these questions were answered by Mark Peecher (Professor of Accountancy at Illinois, Gies College of Business) in episode 12 of our podcast series FARview. Furthermore, Mark summarized the FAR-study he and his team are working on. In their FAR study, they conducted a field experiment in which 184 auditors listen to their own clients’ earnings calls in the midst of audit engagements. Preliminary results indicate that prompting auditors to focus on fraud actually reduces auditor concern about fraud risk! Prompting a focus on management dissonance, by contrast, results in an increase in auditors’ assessed risk of material misstatement and strengthens the correlation among assessing and addressing risk (cognitive dissonance is the negative, uncomfortable emotion a person feels when they are saying something that they know is not true).Link to video of FAR Masterclass with prof. Peecher: https://www.youtube.com/watch?v=uxzoBL4ZCRYRoyalty Free Music from Bensound