Factors Affecting Judgments and Decision Making in respect of Assets Misappropriation

Fraud is always a major concern for firm managers and stakeholders. Timely diagnosis of fraud risk factors or internal control deficiencies is effective in preventing and detecting frauds. Determining the adequacy of internal controls is a judgment, and reporting the defects based on their risk is a decision. This research is an applied and exploratory research that collects and models data from 342questionnaires on the factors affecting the judgments and decision-making process in misappropriation of assets, by structural equation modeling (SEM) , and uses Smart PLS software to test of model. The results show that personality factors such as consistency, conscience, extroversion and openness to experience have a significant relation with goal oriented learning, but, there is no significant relation between openness to experience and goal oriented performance. Goal orientation has a significant effect on knowledge, but there is no significant relation between goals oriented performance and experience. Also, knowledge and experience have a significant effect on identification of risk factors, which leads to detection of the fraud possibility. Finally, the results of the tested model indicate that the people's decision to report susceptible fraud has a significant relation with the detection of the fraud possibility, morality and motivation.