Purpose– The primary research question of this study is to what extent auditors comply with
auditing standards once they encounter fraud and whether compliance is associated with particular
fraud characteristics (i.e. material versus immaterial fraud, management versus employee fraud,
statutory versus voluntary audit and external versus internal fraud) as well as with auditor (experience)
and audit firm characteristics (Big Four versus non-Big Four). The study also aims to provide evidence
on the role of auditors in redressing fraud. Redress refers to the auditee taking measures to nullify the
consequences of the fraud, insofar as possible, and to prevent any recurrence of such fraud