The explanatory variables in the logit equation (1) are as follows:
Z (Fraud occurrence in organization)
ACEFFECT ¼ audit committee effectiveness;
IAEFFECT ¼ internal audit effectiveness;
INTERSKI ¼ tone at the top;
REUNQURE ¼ receipt of unqualified audit report;
ETHGUIPO ¼ ethical guidelines and policy;
AUDPSFD ¼ auditors’ prior success in fraud detection; and
TYPEAUDR ¼ auditor type.