Abstract
Forensic accounting is one of the modern domains of accounting that incorporates special knowledge and a group of skills that are utilized to fight financial corruption and creative accounting, support legal action against such practices and tackle the resulting consequences. The research at hand investigates fundamental perceptions of forensic accounting and discusses methods that forensic accounting uses to detect and curb creative accounting. It also emphasizes the concept of creative accounting, discusses its types and outcomes, and illustrates the techniques of forensic accounting that are used to fight it. A well-structured, five-point Likert style questionnaire was constructed and distributed among a sample of 350 CPAs from the total population of Certified Public Accountants in Mount Lebanon and Beirut Governorates. The researchers used the Statistical Package for Social Sciences (SPSS) to make various statistical tests to analyze the outputs. The research yielded some important findings, mainly that both the integrated and the dimensional audit approaches, which are two forensic accounting methods, lead to curbing creative accounting practices. As a result, the researchers had some recommendations.
Highlights
A number of large companies have collapsed at the beginning of 2002 such as WorldCom, Parmalat, Enron, Credit Swiss, and others
The research concluded that the integrated audit approach, which is one forensic accounting method, leads to curbing creative accounting practices at significance level =(α 0.05)
The research concluded that the dimensional audit approach, which is one forensic accounting method, leads to curbing creative accounting practices at significance level (α=0.05)
Summary
A number of large companies have collapsed at the beginning of 2002 such as WorldCom, Parmalat, Enron, Credit Swiss, and others. The researchers recommended that manufacturing companies augment their forensic accounting practices in order to curb fraud This can be accomplished by having regular forensic auditing of financial records. Analyzing the time sequence which a forensic accountant uses to show the time of occurrences of the disputes or financial crimes to reach a clear image as to the relationships among parties and the time the conflict or crime occurred It is an important practice in presenting all details relevant to the case from the beginning of the event until the goal behind the investigation is attained. The four practices used in this method include hybrid multimodal, predictive coding, bottom line-driven proportional review, and review quality controls
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
