Forensic Accounting Practices Research Articles

FORENSIC ACCOUNTING AND FRAUD DETECTION: A REVIEW OF TECHNIQUES IN THE DIGITAL AGE

This Review provides a succinct overview of the comprehensive review on Forensic Accounting and Fraud Detection, emphasizing the evolution of techniques in the digital age. As financial crimes become more sophisticated, the role of forensic accounting in uncovering and preventing fraudulent activities has gained paramount importance. This review delves into the contemporary landscape of forensic accounting, focusing on the integration of cutting-edge technologies and digital methodologies. The digital age has ushered in a paradigm shift in forensic accounting, necessitating a thorough examination of techniques that harness the power of technology to detect and combat fraud. The Review touches upon the multifaceted aspects of this review, encompassing both traditional and advanced forensic accounting methodologies. It underlines the significance of forensic accountants staying abreast of technological advancements to effectively navigate the intricate terrain of financial fraud in the modern era. The Review encapsulates the primary themes explored in the review, including the application of data analytics, artificial intelligence, blockchain, and machine learning in forensic accounting practices. It highlights the dynamic nature of financial crimes, requiring forensic accountants to adopt agile and innovative approaches to keep pace with fraudulent activities conducted through digital channels. Furthermore, the Review underscores the broader implications of this review for the field of forensic accounting, emphasizing how the synthesis of traditional investigative techniques with digital tools enhances the profession's efficacy in fraud detection and prevention. The Review aims to pique the interest of readers by offering a glimpse into the evolving landscape of forensic accounting, positioning it as a critical component in the fight against financial fraud in the digital age.
 Keywords: Forensic, Accounting, Fraud Detection, Techniques, Digital Age.

FORENSIC ACCOUNTING IN THE DIGITAL AGE: A U.S. PERSPECTIVE: SCRUTINIZING METHODS AND CHALLENGES IN DIGITAL FINANCIAL FRAUD PREVENTION

This research provides a comprehensive review of forensic accounting in the digital age, focusing on its evolution, current practices, and future prospects in combating digital financial fraud. The study employs a systematic literature review methodology, analyzing peer-reviewed articles and case studies from 2015 to 2022. Key findings revealed the transformation of financial fraud in the digital era, marked by increasing complexity and the adoption of advanced technologies. The role of forensic accounting has evolved in response, integrating new tools and techniques for effective fraud detection and prevention. The research identifies various types of digital financial fraud prevalent in the U.S., highlighting the impact of technological advancements on their proliferation. It evaluates the effectiveness and limitations of current forensic accounting practices, emphasizing the need for continuous skill and tool enhancement. The future of forensic accounting is seen as promising yet challenging, with the integration of AI and predictive analytics expected to significantly improve fraud detection capabilities. However, this also presents challenges, including the need for forensic accountants to acquire new skills and adapt to rapidly changing technological landscapes. Recommendations for practitioners and policymakers include the necessity for continuous learning and adaptation, embracing new technologies, and developing robust regulatory frameworks that support advanced practices while ensuring ethical standards. The research concludes with suggestions for future research, particularly in exploring the long-term effectiveness of new technologies in forensic accounting and the impact of evolving regulatory landscapes on the profession. The study underscores the dynamic interplay between technological advancements and financial fraud as an ongoing area for scholarly inquiry and professional development.
 Keywords: Forensic Accounting, Fraud Detection, Financial Fraud, Technological Advancement.

Factors affecting organizational intention to adopt forensic accounting practices: A case of Jordan

Lack of effective internal control, subpar financial reporting, and inefficient audits have all harmed an organization’s ability to operate efficiently. Organizations are now under pressure to enhance their auditing procedures in order to stop and catch fraud. Forensic accounting techniques have gained attention in this direction as a fraud identification and prevention tool. This study aims to examine the factors that affect an organization’s intention to adopt forensic accounting practices. The analysis is based on primary data and uses a sample of 273 employees from listed firms in Jordan to examine this phenomenon. Specifically, the study used correlation and regression analysis to investigate whether coercive, mimetic, and normative pressures determine organizations’ intentions to use forensic accounting practices. The results confirm a significant positive relationship between coercive, mimetic, and normative pressure and the organizations’ intentions to use forensic accounting practices among Jordanian firms. These results highlight the importance of management consultants and training of the employees for appropriate fraud risk management.

The Role of Forensic Accounting in Bridging the Audit Expectation Gap of Microfinance Banks in Akwa Ibom State

The audit expectation gap has widened due to the occurrence of undetected high-profile financial statement frauds, highlighting the need for effective measures to address this issue. This study investigated the role of forensic accounting in bridging the expectation gap among stakeholders in microfinance banks in Akwa Ibom State. Using a survey research design, primary data were collected from 128 respondents representing a sample size drawn from ten randomly selected microfinance banks in Uyo. The data were analyzed using Pearson’s correlation coefficient statistical tool. The findings indicated that incorporating forensic accounting skills significantly mitigates corporate financial fraud by promptly detecting fraudulent patterns that traditional audits may overlook. This highlighted the importance of forensic accounting in addressing the limitations of conventional audit practices. Based on the results, the researcher concluded that forensic accounting practice plays a crucial role in bridging the audit expectation gaps of microfinance banks. To enhance financial reporting quality and stakeholder confidence, it was recommended that microfinance bank directors engage auditors equipped with requisite forensic accounting skills. This proactive approach will enable the early detection and effective mitigation of fraudulent financial reporting, ultimately leading to the production of qualitative financial reports that meet stakeholder expectations.

Enhancing Accountability and Transparency in the Public Sector: A Comprehensive Review of Public Sector Accounting Practices

This research uses a comprehensive bibliometric analysis to explore the literature on public sector accounting practices and their impact on accountability and transparency. The research used VOSviewer, a bibliometric analysis tool, to visualize and analyze the bibliometric network, revealing patterns of collaboration, influential publications, and key themes. The data collection process yielded 840 scholarly articles from leading academic databases, with a focus on English-language publications in the past decade. The results show six distinct publication clusters, each highlighting significant research themes. Cluster 1 emphasizes innovation and transparency, indicating the relevance of accounting change and performance measurement in public sector organizations. Cluster 2 centers on accounting reform and the adoption of accrual accounting practices, exploring the transition from cash-based to accrual-based accounting in the public sector. Cluster 3 studies forensic accounting and internal audit practices, reflecting the growing interest in fraud detection and risk management in public sector entities. Cluster 4 highlights the importance of information systems and efficiency in public sector accounting. Cluster 5 centers on the pressing issue of corruption in the public sector and the role of audit in combating corrupt practices. Cluster 6 explores the potential application of private sector accounting practices in the public sector. Keyword analysis identified the most frequently occurring keywords, such as "accountant", "public sector reform", "performance", and "service", underscoring their importance in the literature. Conversely, keywords with fewer occurrences, such as "transparency" and "information systems", indicate areas that require further attention and research.

Maximizing internal control effectiveness: the synergy between forensic accounting and corporate governance

PurposeThis paper aims to explore the joint role of forensic accounting and corporate governance in enhancing internal control effectiveness.Design/methodology/approachThe study used a previously administrated questionnaire as a data collection method and partial least squares structural equation modeling as a data analysis tool.FindingsThe findings of this paper find a positive relationship between the study’s independent variables (forensic accounting and corporate governance) and dependent variables (internal control effectiveness).Research limitations/implicationsOne potential limitation of this study is the use of a previously administered questionnaire as the primary data collection method, which may have limited the scope and depth of the data collected. Another limitation may be the focus on only two independent variables (forensic accounting and corporate governance), which may not fully capture all the factors that contribute to internal control effectiveness. Despite these limitations, this study provides important insights into the role of forensic accounting and corporate governance in enhancing internal control effectiveness and highlights the need for further research in this area.Practical implicationsThis paper underscores the importance of investing in effective internal control systems and highlights the key role that forensic accounting and corporate governance play in enhancing the effectiveness of these systems.Social implicationsEffective internal control systems are important not only for the financial health of organizations but also for their social and ethical responsibilities to stakeholders. The findings of this study suggest that investing in strong forensic accounting and corporate governance practices can help organizations meet these responsibilities and promote trust and transparency. Policymakers and regulators may use these findings to inform their efforts to promote effective internal control systems and enhance public trust in organizations.Originality/valueThis paper has important implications for service organizations in Jordan and can be used to inform policymakers and regulators in their efforts to promote strong and effective internal control systems.

Forensic Accounting and Fraud Prevention in Owner-Managed Small and Medium Enterprises (SMEs) in Ogun State, Nigeria

This study examined forensic accounting at fraud prevention in small and medium enterprises (SMEs) with emphasis on owner – managed entities. The study adopted a cross-sectional research design, a type of observational study designed with questionnaire administered on administered on selected 165 respondents (middle and senior level staff of Accounting, Finance, Logistics, and Human Resources) in 26 selected small and medium enterprises managed by the owners/family members in Abeokuta metropolis of Ogun State, Nigeria. Simple percentage and frequency tables were used to analyse the distribution of responses and data analysed through descriptive statistics and One Sample T-Test using IBM’s SPSS Statistics 22 to test for the hypothesis formulated in the study. The findings revealed that the application of forensic accounting, with appreciable progress in the developed world, but limited appreciation and usage in emerging economies will prevent fraud in Nigeria SMEs. The understanding of entrepreneurs’ owner-managers and their adoption of forensic accounting practices beyond the traditional auditing and investigation come to the fore. The study thus concluded that the adoption and application of forensic accounting by SMEs will greatly assist in the prevention and detection of fraud in this engine of economic growth. It therefore recommended that right attitude of SMEs owner managers, well defined business processes, controls and enhanced training on forensic accounting by academic, professional bodies and organizations is highly essential in preventing fraud not only in SMEs but in the private with no exception of the public sector.

EFFECT OF FORENSIC ACCOUNTING PRACTICES ON FRAUD MANAGEMENT IN SELECTED GOVERNMENT AGENCIES IN OYO STATE

The aim of this study is to examine the effect of forensic accounting practices on fraud management in selected government agencies in Oyo State. The sample for the study are five (5) selected government agencies in Oyo State which are Office of the Accountant General; Hospital Management Board; Ministry of Agriculture, Rural Development and Natural Resources; Local Government Staff Pensions Board; and Oyo State Universal Basic Education Board. The sampling technique used is the census sampling technique. Data were collected with the aid of structure questionnaire. The data was coded and analyzed using both descriptive and inferential statistics such as correlation and Analysis of Variance. Results reveal that forensic investigation and forensic dispute resolution has a positive and significant effect on fraud management. While forensic litigation was found to have negative and insignificant effect on fraud manageme The studyrecommends that an improvement in forensic practices will lead to better fraud management in most agencies and that the forensic investigator should be more pro-active in combating any form of fraudulent activities in the state.

Forensic accounting and fraud mitigation in the manufacturing industry in Nigeria

This study examined the influence of forensic accounting practices and reduction of fraud in manufacturing industry in Nigeria. Descriptive survey design was utilized to conduct the study. The target population for this study was all the manufacturing firms listed on the floor of Nigerian Stock Exchange (NSE) market as at 31st December, 2019. Purposive sampling technique was used to select five (5) firms which emerged as the sample of the study. Primary data was used for the study and questionnaires were used as data collection tool. One hundred seventy five (175) copies of structured questionnaires were distributed to forensic accountants and auditors of the selected listed manufacturing companies in which all were retrieved and analyzed. The study results established that forensic accounting had positive and significant effect on financial fraud reduction and improvement of internal control system of manufacturing companies respectively. The study concluded that forensic accounting practices such as; fraud investigation and fraud litigation are very important for the reduction of financial fraud in manufacturing companies. The study recommends that the inclusion of forensic accounting in the code of corporate governance practices will drastically reduce financial fraud in manufacturing industry and that manufacturing companies in Nigeria step up their forensic accounting practices in order to deter fraud. This they can achieve by making forensic auditing of financial records a regular and routine activity.

Forensic accounting and fraud detection: evidence from manufacturing industry in Nigeria

The increasing demand for forensic accounting is a certain defining feature of most businesses in the world. Forensic accounting occurs from the reason and result of fraud and technical errors invented by humans. It became relevant that forensic accounting is introduced and practiced, and forensic accountant to provide litigation support and investigative accounting. Therefore, this paper critically examined the effect of forensic accounting on fraud detection in the manufacturing industry in Nigeria. This study employed the survey design and data were collected using primary data and this was achieved via a structured questionnaire. The population of the study consists of all the employees of PZ Nigeria Limited. The target population of the study was the employees in the accounting department of PZ Nigeria Limited. Regression analysis was used to show the relationship between the dependent variable and the independent variable. The study found out there is a significant effect of forensic accounting on fraud detection. The study, therefore, recommended that industry in the manufacturing industry should build a continuous improvement in the internal control system and ensure effective and efficient internal checks. Also, the company should choose a sound accounting system and effective forensic accounting practices.

Social Trust, Market Competition, and Tax Avoidance: Evidence from Contemporary China

ABSTRACTFirms pay their fair share of taxes because they want to be perceived as good corporate citizens. However, managers might engage in tax-avoiding activities if such activities are value-maximizing. Using firms in China, this study investigates the relation between social trust and corporate practice of tax avoidance. Results show that firms located in provinces with higher social trust levels engage less in tax-avoiding activities, and the negative relation between social trust and tax avoidance is more pronounced for firms in industries that are less competitive. Since corporate tax avoidance leads to significant loss of tax revenues, tax authorities in China should engage the services of forensic accountants to identify those corporations that practice aggressive tax avoidance. Furthermore, China needs to provide more forensic accounting training for accountants and auditors. Educational institutions need to offer more forensic accounting courses in order to fill the gap between forensic accounting practices and education.

A Qualitative Perspective of Practical Implication of Forensic Accounting for Fraud Detection and Prevention in Pakistan

The staple objectives of this study are to determine the importance and worth of forensic accounting in the context of Pakistan. Accounting frauds are increasing day by day, especially in the commercial sector of Pakistan. In the majority of Pakistani companies' accountants are inexperienced and nonprofessional and unable to understand the new financial reporting standard that becomes a cause of enhancing accounting frauds. This study followed a qualitative approach to collect data through interviews from both participants, including academicians and practitioners who are working in a prestigious academic institution and business organization where the concept of forensic accounting is taught and implemented with the right letter and spirit. Finding have been derived by transcribing data through coding and taking essential themes regarding the practical implementation of forensic accounting practices in Pakistan by using NVIVO software. The findings of the study indicated that forensic accounting scope is broad, especially regarding the increasing ratio of white-collar crimes and digital crimes, and in a near-future lot of opportunities will be arises in Pakistan in the context of forensic accounting. Both academicians and practitioners agreed that the importance of forensic accounting could not be overlooked, especially concerning digital and white-collar frauds both in the private sector and public sector organizations.

Corruption and fraud detection through foresic accounting practices in kurdistan region of iraq

This paper aims to explore the importance and the role of forensic accounting practices in detecting (and preventing) corruption and fraud; and to identify the factors that hinder the adoption of forensic accounting practices in Kurdistan Region, Iraq. To achieve the objectives of the study was developed questionnaire included (24 questions) distributed on 47 academic professionals in the Kurdistan Region Iraq, the researchers reached a number of conclusions after analyzing questionnaire's questions. The most important of these conclusions There is a role Forensic Accounting in combating fraud and financial corruption in the Kurdistan Region and there are many factors that hinder the application of Forensic Accounting in the Kurdistan Region. The researchers also made a number of recommendations, in view of the importance of Forensic Accounting, therefore, researchers recommend increasing interest in it in the school curriculum and incorporating this aspect in accounting education so that the graduate to be familiar with it and the necessity for the Kurdistan Regional Government to build an effective monitoring system based on Forensic Accounting services that takes it upon itself to preserve both the rights and the financial authority.

THE IMPACT OF FORENSIC ACCOUNTING ON FRAUD DETECTION IN THE UAE BANKING SECTOR: AN EMPIRICAL STUDY

Uncovering the financial fraud is the major attention on forensic accounting. Financial frauds have been growing strongly across the worldwide stage including UAE banking sector over the past decade. Consequently, the cumulative activities of financial frauds need the high engagement of forensic accounting to carry out the effective investigation as well as the performance of the individuals related with the criminal activities. The forensic accounting is anticipated to facilitate for reducing or preventing susceptibility of conventional accounting and audit systems contributing to financial frauds. In this research, the major focus is on determining the impact of forensic accounting practices in detecting and preventing the suspected frauds from the banking sector operation in the UAE. The major findings of this research show that there is a significant impact of forensic accounting on the detection of fraud within Banking Industry in UAE. Article visualizations:

FORENSIC ACCOUNTING ON FRAUD DETECTIONIN THE UAE BANKING SECTOR

Detecting the financial fraud is the foremost emphasis on forensic accounting. Financial frauds have been increasing rapidly across the international levels including UAE banking sector over the past years. Accordingly, the increasing activities of financial frauds require the high engagement of forensic accounting to run the effective investigation along with the performance of the individuals related to the criminal activities. The forensic accounting is estimated to facilitate for reducing or preventing susceptibility of conventional accounting and audit systems contributing to financial frauds. In this study, the main emphasis is on determining the influence of forensic accounting practices on detecting and preventing the suspected frauds from the banking sector operation in the UAE. The main results of this study demonstrate that there is a noteworthy influence of forensic accounting on the detection of fraud within Banking Industry in UAE. Article visualizations:

Forensic Accountant Skills: An Empirical Investigation in the Malaysian Forensic Accounting Education Curriculum.

Existing forensic accounting graduates in developing countries that practice the current forensic accounting curriculum showed lack of knowledge, skills and abilities in fraud detection and prevention as compared to graduates in developed countries. The Accounting curricular should provide students with the basic theoretical framework for understanding Audit Investigation, Fraud Examination and Forensic Accounting and, simultaneously, provide students with knowledge and techniques. Currently, Universities do not include suitable syllabus that meet the requirement of forensic accounting firms. Therefore, matching expectations of employers and suitable curricular content for the development of forensic accountant knowledge and skills are crucial. Thus, coverage of forensic accounting syllabus and the quality of forensic accountant practitioner becomes an issue. The objective of this study is to investigate the relationship between forensic accounting course and forensic accountant skills. A total of 96 individuals completed the questionnaire that was used for the analysis adapted mainly from the course outcome of Forensic Accounting and Financial Criminology Master’s degree programme in one of the public universities in Malaysia. The result of this study indicated that auditing courses have no significant relationship towards forensic accountant skills despite having positive relationship, whilst fraud examination courses and forensic accounting courses have significant positive relationship towards forensic accountant skills. The results of this study should aid in setting the future direction and the role of forensic accounting practices and education. Forensic accounting education plays a vital role in preparing forensic accountant for the working world.

Analyzing The Impact of Forensic Accounting on The Detection of Financial Information Manipulation

The advent of rapid technological change and globalization have prominently decreased the ability of traditional methods to deal with financial information manipulation. Forensic accounting has brought a contemporary approach to the investigation of financial information manipulation. Financial market participants expect that future demand for forensic accountants will significantly increase in the business environment. Forensic accounting applications have grabbed significant attention in the recent years due to its effectiveness in the investigation of financial information manipulation. Forensic accounting includes a wide range of activities such as litigation support, expert witness and fraud investigation. Past experiences have proved that forensic accounting practices play a pivotal role in the detection and deterrence of financial information manipulation. This study aims to investigate the impacts of forensic accounting on the detection of financial information manipulation in the current business environment. Moreover, the dynamics of forensic accounting are discussed. The methods used by forensic accountants to detect financial information manipulation are presented.

Forensic Accountant Skills: An Empirical Investigation in the Malaysian Forensic Accounting Education Curriculum

Existing forensic accounting graduates in developing countries that practice the current forensic accounting curriculum showed lack of knowledge, skills and abilities in fraud detection and prevention as compared to graduates in developed countries. The Accounting curricular should provide students with the basic theoretical framework for understanding Audit Investigation, Fraud Examination and Forensic Accounting and, simultaneously, provide students with knowledge and techniques. Currently, Universities do not include suitable syllabus that meet the requirement of forensic accounting firms. Therefore, matching expectations of employers and suitable curricular content for the development of forensic accountant knowledge and skills are crucial. Thus, coverage of forensic accounting syllabus and the quality of forensic accountant practitioner becomes an issue. The objective of this study is to investigate the relationship between forensic accounting course and forensic accountant skills. A total of 96 individuals completed the questionnaire that was used for the analysis adapted mainly from the course outcome of Forensic Accounting and Financial Criminology Master’s degree programme in one of the public universities in Malaysia. The result of this study indicated that auditing courses have no significant relationship towards forensic accountant skills despite having positive relationship, whilst fraud examination courses and forensic accounting courses have significant positive relationship towards forensic accountant skills. The results of this study should aid in setting the future direction and the role of forensic accounting practices and education. Forensic accounting education plays a vital role in preparing forensic accountant for the working world.

Relevance of big data to forensic accounting practice and education

Purpose This paper aims to examine the relevance of Big Data to forensic accounting practice and education by gathering opinions from a sample of academics and practitioners in China. Design/methodology/approach The authors conduct a survey of academics and practitioners regarding the desired demand, importance and content of Big Data educational skills and topics for forensic accounting education to effectively respond to challenges and opportunities in the age of Big Data. Findings Results indicate that the demand for and interest in Big Data/data analytics and forensic accounting will continue to increase; Big Data/data analytics and forensic accounting should be integrated into the business curriculum; many of the suggested Big Data topics should be integrated into forensic accounting education; and some attributes and techniques of Big Data are important in improving forensic accounting education and practice. Research limitations/implications Readers should interpret the results with caution because of the sample size (95 academics and 103 practitioners) and responses obtained from academics and practitioners in one country (China) that may not be representative of the global population. Practical implications The results are useful in integrating Big Data topics into the forensic accounting curriculum and in redesigning the forensic accounting courses/programs. Social implications The results have implications for forensic accountants in effectively fulfilling their responsibilities to their profession and society by combating fraud. Originality/value This study provides educational, research and practical implications as Big Data and forensic accounting are advancing.

Palmer & Harvey: A Case of Governance and Audit Failure

Palmer & Harvey (PH it raises questions about conventional audit reporting, and whether it is too limited in its analysis and reporting. The paper recommends a strengthening of corporate governance guidelines and practice within the terms of the current Financial Reporting Council (FRC) review, and a wider adoption of forensic accounting practice and reporting, in part taking account of the impact of behavioural factors in management practice. A wider study is proposed to take this analysis and discussion further.