The Power of Words: How Subtle Language Shifts Boost Fraud Risk Disclosures

Summary

This study explores how small changes to the wording of audit fraud inquiries can increase client willingness to disclose fraud risks. Specifically, it tests whether minimizing the seriousness of the inquiry — by avoiding the word "fraud" and using terms like "questionable behavior," or by suggesting that disclosing concerns is common — prompts more candid client responses.