Recent behavioral science research on abnormal personality types may have a major impact on the practice of auditing. This article discusses the possible prevalence of “dark triad” personality types within the executive ranks. The risk models currently used by the profession may be insufficient for dealing with such abnormal personalities, for whom only opportunity may be necessary to commit fraud. The authors suggest factoring in executives’ personality types and the resultant behavioral/integrity risks as an integral part of risk assessment.
The related article, “Today’s Fraud Risk Models Lack Personality: Auditing with ‘Dark Triad’ Individuals in the Executive Ranks,” By Sridhar Ramamoorti and Barry Jay Epstein, appeared in March 2016 print edition and is available here.