https://ir.unisa.ac.za/handle/10500/13890 2026-09-19T01:46:13Z https://ir.unisa.ac.za/handle/10500/33034 Advancing a theory of fraud risk signal detection in external audit engagements Sewpersadh, Navitha Singh This study addresses the persistent challenge of fraud risk within external audit engagements by examining how auditors detect, interpret, and escalate fraud risk signals under conditions of ambiguity, procedural opacity, and institutional constraint. Despite the codification of fraud-related responsibilities in auditing standards, auditors continue to encounter governance and procedural barriers that inhibit signal responsiveness. These constraints contribute to missed fraud risk signals, hesitancy to escalate fraud risk signals, and the erosion of audit credibility. The aim of this research is to develop a contextually grounded substantive theory that explains the interpretive, procedural, and organisational architecture underpinning Fraud Risk Signal Detection (FRSD). This study adopts Glaser’s Traditional Grounded Theory (TGT) within a postpositivist paradigm, critical realist ontology, and modified objectivist epistemology. Thirty semistructured interviews with external auditors across hierarchical levels and firm sizes were conducted, supplemented by eight follow-up engagements. Theoretical sampling, constant comparison, and iterative memo-writing were applied to generate conceptual categories, with literature engagement delayed until saturation to protect theoretical emergence. NVivo was used solely for data retrieval. The resulting FRSD theory explains how auditors manage two core concerns: (1) missed fraud risk signals, and (2) hesitancy to escalate signals that are weak, ambiguous, or procedurally suppressed. This theory is anchored in the core category Audit Firm Governance and Culture, which mediates the legitimacy and traceability of interpretive judgment. It introduces Adaptive Skeptical Vigilance as an enabling mechanism, a governance-conditioned interpretive mindset characterised by overridesensitive reasoning, ethical inquiry, and interrogative challenge. Together, these components structure a six-phase Basic Social Process (BSP) of Institutionalising Vigilance: (1) pre-engagement risk profiling, (2) client risk contextualisation, (3) fraud lens construction and parameterisation, (4) governance-enabled signal interrogation, (5) escalation decision-making, and (6) institutional learning. Risk-parameterised analytics and forensic specialist collaboration operate as signal amplifiers under diagnostic uncertainty. iv Informed by this saturated theory, this study presents seven theoretically derived recommendations for audit firms, regulators, and standard-setting bodies. These include reinforcing governance structures that authorise escalation; embedding skeptical vigilance within audit routines; integrating forensic and data specialists into escalation structures; institutionalising post-engagement learning; and revising standards such as ISA 240 to reflect governance-mediated interpretive infrastructures. These recommendations advance a governance-anchored model of fraud risk vigilance, clarifying that effective FRSD is not a function of individual skepticism alone, but of structurally enabled organisational capacity.; Hierdie studie ondersoek die volgehoue uitdaging van bedrogrisiko binne eksterne ouditopdragte deur te analiseer hoe ouditeure tekens van bedrogrisiko identifiseer, interpreteer en eskaleer onder toestande van dubbelsinnigheid, prosedurele ondeursigtigheid en institusionele beperkinge. Ten spyte van die kodifisering van bedrogverwante verantwoordelikhede in ouditstandaarde, kom ouditeure steeds te staan voor bestuurs- en prosedurele struikelblokke wat hul sensitiwiteit vir risikotekens verhoed. Hierdie beperkings lei daartoe dat risikotekens misgekyk word en dat ouditeure huiwerig is om die tekens te eskaleer; wat die geloofwaardigheid van oudits erodeer. Die doel van die navorsing is om’n substantiewe, kontekstueel-gegronde teorie te ontwikkel wat die interpretatiewe, prosedurele en organisatoriese raamwerk onderlê wat bedrogrisikoteken-opsporing (FRSD) moontlik maak, verduidelik. Die studie maak gebruik van Glaser se Tradisionele Grondteorie (TGT) binne ’n postpositivistiese paradigma, met ’n krities-realistiese ontologie en ’n gewysigde objektivistiese epistemologie. Dertig semi-gestruktureerde onderhoude met eksterne ouditeure van verskillende hiërargiese vlakke en firmasgroottes is gevoer, aangevul deur agt opvolgonderhoude. Teoretiese steekproefneming, konstante vergelyking en iteratiewe opstelling van memo’s is toegepas om konseptuele kategorieë te genereer, terwyl literatuurbenutting doelbewus uitgestel is totdat versadiging bereik is, ten einde teoretiese verskyning te beskerm. NVivo is uitsluitlik vir dataherwinning gebruik. Die gevolglike FRSD-teorie verduidelik hoe ouditeure twee kernprobleme hanteer: eerstens, die miskenning van bedrogrisiko-tekens, en tweedens, die huiwering om tekens wat vaag, dubbelsinnig of prosedureel onderdruk is, te eskaleer. Hierdie teorie is gesentreer rondom die kernkategorie Ouditfirmabestuur en -kultuur, wat die legitimiteit en naspeurbaarheid van interpretatiewe beoordeling bemiddel. Daarin word Aanpasbare Skeptiese Waaksaamheid voorgestel as ’n bemagtigende meganisme, naamlik ’n bestuursafhanklike interpretatiewe ingesteldheid wat gekenmerk word deur sensitiwiteitoorheersende redenering, etiese ondersoek en kritiese bevraagtekening. Tesame struktureer hierdie elemente ’n ses-fase Basiese Sosiale Proses (BSP) van Institusionalisering van Waaksaamheid: (1) risikoprofielsamestelling voor aanvang van die opdrag, (2) kontekstualisering van kliëntrisiko, (3) konstruksie en parameterisering van ’n “bedrog-lens”, (4) bestuursbemagtigde tekenondersoek, (5) vi besluitneming rakende eskalasie, en (6) institusionele leer. Risikogeparameteriseerde analitiese prosedures en samewerking met forensiese spesialiste funksioneer as tekenversterkers onder toestande van diagnostiese onsekerheid. Gebaseer op hierdie versadigde teorie, formuleer die studie sewe teoretiesgefundeerde aanbevelings vir ouditfirmas, reguleerders en standaardstellende liggame. Dit sluit onder meer in: die versterking van bestuurstrukture wat eskalasie legitimeer; die inbedding van skeptiese waaksaamheid in ouditroetines; die integrasie van forensiese en dataspesialiste in eskalasieprosesse; die institusionalisering van leer ná opdragte; asook die hersiening van standaarde soos ISA 240 om bestuursbemiddelde interpretatiewe infrastruktuur te weerspieël. Hierdie aanbevelings bevorder ’n bestuursgeankerde model van bedrogrisiko-waaksaamheid en beklemtoon dat doeltreffende FRSD nie bloot ’n funksie van individuele skeptisisme is nie, maar van struktureel-verankerde organisatoriese kapasiteit afhanklik is .; Lolu cwaningo lwenzelwe ukubheka inselelo ehlala ivela uma kwenziwa ucwaningomabhuku angaphandle ngokuthi kuhlolwe ukuba abacwaningi bamabhuku bazithola kanjani, bazihumushe, futhi bazidlulise kanjani izinkomba zobungozi bezokukhwabanisa ngaphansi kwezimo zokungaqondakali, ukungabonakali kahle kwezinqubo, kanjalo nezingqinamba zesikhungo. Naphezu kokufakwa kwamakhodi ngokwezibopho eziphathelene nokukhwabanisa emazingeni okucwaningwa kwamabhuku, abacwaningi bamabhuku basaqhubeka nokuhlangabezana nezingqinamba kwezokuphatha kanye nezinqubo ezivimbela ukusebenza kwezimpawu zokumelana nesimo. Lezi zingqinamba zinomthelela ekutheni zingabonakali izimpawu zobungozi kwezokukhwabanisa, ungabazane lobuningi bezimpawu zobungozi kwezokukhwabanisa, kanjalo nokungathembakali kwezocwaningomabhuku. Inhloso yalolu cwaningo ukuqhamuka nendlela yokusebenza eqondile enesisekelo futhi ezochaza, ikhombise inqubo, iphinde iveze ukuma kwesakhiwo okusekela Isiqaguli Sezinkomba Zobungozi Kwezokukhwabanisa (FRSD). Lolu cwaningo lusebenzise iGlaser's Traditional Grounded Theory (TGT) ngaphansi kohlelomqondo lokuqondisisa, ubunjalo besimo, kanye nendlela yokwazi izimo eziguquliwe. Lapha kuye kwenziwa izinhlolovo ezivulelekile ezingamashumi amathathu nabacwaningi mabhuku bangaphandle kuwo wonke amazinga ezikhundla kanye nangobungako bamafemu, kwengezwa nangezingxoxo zokulandelela eziyisishiyagalombili. Kuphinde kwasetshenziswa namasampuli endlela yokwenza, ukuqhathanisa, kanye nokuphindelela kokubhalwa kwememo ukuze kutholakale imiqondo eyahlukahlukene, kwabandakanywa nezincwadi ezibambezeleka kuze kube kuqala ukusebenza kwendlela yokuvikela. INVivo isetshenziselwe ukubuyisa imininingo kuphela. Umphumela wendlela yokusebenza kweFRSD uchaza indlela abacwaningi mabhuku abaphatha ngayo izimo ezimbili ezikhathazayo: (1) ukuhluleka ukubona izimpawu zengozi bezokukhwabanisa, kanye (2) nongabazane lobuningi bezimpawu zobungozi kwezokukhwabanisa, ukungacaci, noma ukucindezeleka ngokwenqubo yokusebenza. Le ndlela yokusebenza igxile esigabeni esiwumongo waBacwaningi Bamabhuku Okwengamela Amafemu Nosiko, esilawula ukuba semthethweni viii nokulandeleka okucacisa ngokwahlulela. Le ndlela yethula i-Adaptive Sceptical Vigilance njengendlela enika amandla, indlela yokucabanga icacise ngokunombandela wokuphatha nokucabanga ngobucayi, uphenyo lwezimiso zokuziphatha, kanye nenselelo uma kubuzwa okuthile. Uma sekuhlangene, le minxa yakha izinhlaka eziyisithupha zeBasic Social Process (BSP) of Institutionalizing Vigilance: (1) ukubhekwa kwesimo ngaphambi kokusisebenza, (2) ukubhekelelwa kwengcuphe yekhasimende, (3) ukwakhiwa kweziqaphi kwezokukhwabanisa nokubekwa kwemikhawulo, (4) ukuphenywa kwezinkomba ngokwamandla okubusa, (5) ukukhuphula izinga ekuthatheni izinqumo, kanye (6) nokufunda ngesikhungo. Ukuhlaziya ngokwemikhawulo ebekiwe kanye nokusebenzisana kochwepheshe bezobunhloli kusebenza njengendlela yokwandisa izinkomba ngaphansi kongabazane lwalokho okuhlolwayo. Ngokususela kule ndlela ephelele yokusebenza, lolu cwaningo lwethula izincomo eziyisikhombisa ezisuselwe ezimfundisweni zamafemu acwaninga amabhuku, abalawuli, kanye nezinhlangano ezinquma ngendlela yokusebenza. Lokhu kubandakanya: ukuqinisa izinhlaka zokubusa ezigunyaza ngokunyuswa kwezinga; ukuqashelwa kongabazane ngaphakathi kwezinqubo zokucwaninga; ukuhlanganisa ochwepheshe bezobunhloli kanye nongoti bezemininingo ekubhekeleni ukwanda kwezakhiwo; ukufaka imfundo yaphambilini ibe ngaphansi kwesikhungo; kanye nokubuyekeza izilinganiso ezifana ne-ISA 240 ukuze zibonise ingqalasizinda ecacisa ngokuqondiswa kwendlela yokubusa. Lezi zincomo ziqhubekisela phambili indlela yokubusa enesisekelo ekuqapheni izingozi kwezokukhwabanisa, zicacisa ukuthi impumelelo yeFRSD ayiwona umsebenzi ongenziwa umuntu oyedwa, kodwa kudingeka abasebenzi benhlangano jikelele. 2025-07-05T00:00:00Z https://ir.unisa.ac.za/handle/10500/33003 Beyond Formal Support: Appraising Micro-Level Interventions in the Black African Chartered Accountancy Pipeline in South Africa Leballo, Tebogo The chartered accountancy profession in South Africa continues to underrepresent Black Africans in its membership. The government, accounting professional bodies and other affiliated institutional stakeholders within the profession have introduced various support initiatives to address this underrepresentation. Despite these initiatives, the success rate of Black African aspiring candidates remains low, posing a significant challenge to the country's economic transformation imperative. The study is therefore positioned to explore support initiatives emerging amongst individuals in the profession, specifically within digital communities. Using Ubuntu as a theoretical lens and applying a qualitative netnographic approach, support initiatives available to aspiring Black African CAs were identified and appraised. The study collected data from publicly available LinkedIn posts that provided or referred to support for aspiring CAs in South Africa. Selected posts were identified using keyword searches related to the CA(SA) pathway and support for aspiring CAs. The collected data was analysed and categorised based on the support offered, the support engaged by aspirants and the gaps that remain. The study found that support was primarily offered by individuals who had walked the journey. The support was primarily academic, with mental, networking, mentorship, financial, and learnership support also evident. It was evident that aspirants were engaging in the support. The identified gaps indicate a segmented, siloed approach to support, often leading to duplication, which could overwhelm the aspirants. The informal nature of the support also casts doubt on its credibility. Based on the study, it therefore recommends that macro- and meso-level institutions collaborate with micro-level support providers to complement one another and broaden the reach and capacity of support initiatives. This collaboration would strengthen the comprehensive support available to aspiring candidates 2026-07-02T00:00:00Z https://ir.unisa.ac.za/handle/10500/32681 Effectiveness of financial management in public sector a case of Department of Employment and Labour, the Eastern Cape, South Africa Fodi, Mzukisi An investigative study evaluated a financial management framework's effectiveness in resolving financial management issues and improving financial performance. The researcher utilized quantitative research methods such as probability sampling and descriptive statistics for data analysis, including Pearson-Pearson correlations and multiple regression analysis to test hypotheses. The study adhered to ethical standards by ensuring participant protection, privacy, confidentiality, anonymity, and informed consent. Data analysis revealed key themes including internal controls, financial governance, financial reporting, financial management, and financial reconciliation. It was found that the department lacked training for finance employees, knowledge from external auditors, budget monitoring mechanisms, accurate fixed assets reconciliation, and a system to prevent irregular expenditure. Recommendations included reviewing training policies, providing workshops for finance officials, ensuring audit readiness, strengthening duties and responsibilities, implementing systems to prevent unauthorized access, introducing expenditure approval templates, and requiring budget approval before expenditure. The study found that the existing financial management framework is effective but identified areas in need of improvement. 2026-01-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/32672 A framework for accounting information quality and shareholder value in listed consumer goods companies in Nigeria Abdullateef, Sheriff The role of accounting information quality, in explaining variations in the determinants of shareholder value—share prices and stock returns—has long been a subject of discussion in accounting research. Researchers developed the value relevance model as a measure of accounting information quality, and it has remained the dominant measure in the literature. However, it has not been sufficient in operationalising the fundamental qualities of accounting information – relevance and reliability – as prescribed by the Conceptual Framework for Financial Reporting. This study examines the extent to which accounting information quality, proxied by accounting-based measures of earnings quality, impacts shareholder value as measured by stock returns. It also tests whether there is a causal relationship between earnings quality and shareholder value. The study employs a correlational and causal research design, using quantitative methods and secondary data from consumer goods companies listed on the Nigerian Stock Exchange (NSE). Given cross-sectional dependence in the panel data, the Arellano-Bond dynamic panel-data estimator was adopted to test the hypothesis. The study found that only earnings persistence significantly impacts stock returns, negatively. Other earnings quality measures, including accrual quality, have a negative but statistically insignificant impact on stock returns. Earnings predictability and earnings smoothness, on the other hand, have positive but also statistically insignificant impacts on stock returns. The results of the pairwise Granger-causality tests revealed that none of the earnings quality measures used in this study Granger-cause stock returns. However, the study's findings showed reverse causality, with stock returns Granger-causing earnings persistence and the return on assets. Analysing the interrelationships among the earnings quality measures indicates a strong one-way causality from accrual quality to earnings predictability. In either direction, no significant causal relationships were found between earnings persistence and accrual quality, earnings persistence and earnings predictability, or between earnings persistence and earnings smoothness. Likewise, no Granger causality was observed between earnings smoothness and earnings predictability, suggesting that these aspects of earnings quality tend to operate independently in the sampled firms. The study therefore demonstrates that, to fully understand the impact of earnings quality on stock returns, it is crucial to broaden the scope of explanatory variables to examine how external factors interact with fundamental accounting information to determine changes in stock returns. The study contributes to knowledge by developing a framework for the observed relationship between earnings quality and stock returns, grounded in the efficient market hypothesis and its interaction with information asymmetry and agency theory. Finally, the study recommends that investors look beyond earnings quality and consider macroeconomic trends, behavioural biases, and firm-specific financial strength, and suggests the need for further research to investigate whether behavioural biases or market anomalies might explain the counterintuitive results 2025-11-01T00:00:00Z