A Meta-Model for Fraud Risk Assessment in Auditing: A Qualitative Approach Based on Grounded Theory

Abstract

The objective of this study was to develop a comprehensive meta-model for fraud risk assessment in auditing using a qualitative grounded theory approach based on expert perspectives. This qualitative fundamental research adopted a multidimensional grounded theory methodology. Data were collected in 2023 through semi-structured interviews with 32 experts, including university scholars, audit firm partners, regulatory authorities, and financial analysts. Participants were selected using purposive and snowball sampling until theoretical saturation was achieved. Data analysis was conducted through open, axial, and selective coding using MAXQDA software. Extracted concepts were systematically categorized into causal conditions, contextual conditions, intervening factors, strategic actions, and consequences. The findings indicated that fraud risk assessment represents a dynamic and multidimensional process shaped by the interaction of individual competencies, organizational structures, and environmental conditions. Core causal factors included auditors’ proficiency in applying auditing standards and regulations, cognitive and perceptual capabilities, professional expertise, and awareness of business environment complexity. Contextual conditions involved effective institutional supervision, professional collaboration, communication and networking capabilities, and evidence-based decision-making. Intervening conditions such as professional ethics, auditor competence, performance management, social responsibility orientation, and adaptation to information technology developments strengthened the assessment process. Strategic mechanisms emphasized improving auditors’ ability to recognize emerging fraud patterns and ensuring integrated interpretation of laws and standards, ultimately enhancing professional judgment and audit effectiveness. The proposed meta-model demonstrates that effective fraud risk assessment extends beyond traditional financial indicators and requires a systemic, multi-level perspective integrating human, institutional, and technological dimensions. Implementing this framework can improve audit quality, enhance financial reporting transparency, strengthen stakeholder trust, increase financial market efficiency, and mitigate economic consequences arising from fraudulent activities.