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1 – 10 of over 15000Seval Kardeş Selimoğlu and Mehtap Altunel
Along with accounting scandals in the past, academics, researchers, and legislators have focused on fraud. The purpose of this study is to examine postgraduate and doctoral…
Abstract
Along with accounting scandals in the past, academics, researchers, and legislators have focused on fraud. The purpose of this study is to examine postgraduate and doctoral studies, articles, and books about forensic accounting and fraud audit published between the years 2008 and 2018 in Turkey. For this purpose, a total of 96 studies have been examined and 35 of these are master’s theses, 10 of them are PhD theses, 45 of them are articles, and six of them are books. These studies were presented in tables as classified. The studies examined in our research are summarized as year they were published, the author, and the scope of the topic and in terms of results. The conclusions of this study can be summarized as follows: (a) the majority of thesis published about forensic accounting and fraud audit are in 2011 and following years. In addition, most of the theses are focused on forensic accounting review rather than fraud audit. (b) Results in the articles reviewed are in the same direction with theses. (c) There are very few books about fraud audit and forensic accounting. One of them is related to fraud audit, while the rest of them are related to forensic accounting and forensic accounting profession. We suggest extending the scope of the study and making to other countries.
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This study takes the position that the concept of fraud is socially constructed. Moreover, it asks why and how different understandings of fraud have emerged. Insights from the…
Abstract
This study takes the position that the concept of fraud is socially constructed. Moreover, it asks why and how different understandings of fraud have emerged. Insights from the work of Lakoff and Johnson (1999, 2003; Lakoff, 2002, 2004, 2009) are used to analyze language revealing dominant worldviews and metaphors regarding fraud. The research method is a case study (Yin, 2014), and the analytical approach used parallels the one described in O’Dwyer (2004). The research setting is a report issued by the Financial Crisis Inquiry Commission, which provides a context to study different understandings of fraud due to the report’s divided nature. The analysis reveals three alternative worldviews, representing different assumptions about reality, that are at the root of the different understandings of fraud. These worldviews also lead to the usage of different conceptual metaphors which allow the commissioners to interpret facts in a manner that supports each worldview’s assumptions. The paper also concludes by providing a nuanced and critical examination of the results of the commission concerning its understanding of fraud.
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Domenico Campa, Alberto Quagli and Paola Ramassa
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Abstract
Purpose
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Design/methodology/approach
This literature review includes both qualitative and quantitative studies, based on the idea that the findings from different research paradigms can shed light on the complex interactions between different financial reporting controls. The authors use a mixed-methods research synthesis and select 64 accounting journal articles to analyze the main proxies for fraud, the stages of the fraud process under investigation and the roles played by auditors and enforcers.
Findings
The study highlights heterogeneity with respect to the terms and concepts used to capture the fraud phenomenon, a fragmentation in terms of the measures used in quantitative studies and a low level of detail in the fraud analysis. The review also shows a limited number of case studies and a lack of focus on the interaction and interplay between enforcers and auditors.
Research limitations/implications
This study outlines directions for future accounting research on fraud.
Practical implications
The analysis underscores the need for the academic community, policymakers and practitioners to work together to prevent the destructive economic and social consequences of fraud in an increasingly complex and interconnected environment.
Originality/value
This study differs from previous literature reviews that focus on a single monitoring mechanism or deal with fraud in a broadly manner by discussing how the accounting literature addresses the roles and the complex interplay between enforcers and auditors in the context of accounting fraud.
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Chun‐Keung Hoi and Ashok Robin
This paper aims to examine the research questions: Do executive and non‐executive directors face similar labor market penalties upon revelation of accounting fraud? Are all…
Abstract
Purpose
This paper aims to examine the research questions: Do executive and non‐executive directors face similar labor market penalties upon revelation of accounting fraud? Are all executive directors treated by markets as a homogenous group? Or, do executive directors who are top managers face stiffer penalties than other executive directors?
Design/methodology/approach
Board membership of incumbent directors in US firms accused of accounting fraud are tracked for three years after the revelation. Two labor market consequences/penalties are considered. Probability of losing internal, own firm board seat is the likelihood that incumbent directors leave the accused firm's board upon accounting fraud revelation. The likelihood of losing at least one external board seat (outside directorship) is also examined. Both univariate tests and multivariate LOGIT regressions are used to conduct the analysis.
Findings
Compared to non‐executive directors, executive directors are more than twice as likely to lose own firm board seat and at least five times as likely to lose at least one outside directorship. Moreover, all executives, top or otherwise, appear to face similar tough penalties.
Research limitation/implications
Accounting fraud is a rare event; this may limit the generality of the findings. Results obtained from a US sample may be applicable to countries with well‐developed capital and labor markets. Results imply that the labor market for directors serves a vital function in the US‐style corporate governance environment; labor market discipline provides at least some incentives for board members, including non‐employee directors and other executive directors, to perform their fiduciary duties.
Originality/value
This is the first study that utilizes a single corporate event to analyze the operation of the labor market across different categories of directors. Also, while studies have examined penalties on top executives there is no evidence that other executives who also serve on the board of the accused firms suffer labor market penalties.
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This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect…
Abstract
This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect fraud, domestically and abroad. Specifically, it focuses on the role played by the US Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants (IMA), the Association of Certified Fraud Examiners (ACFE), the US Government Accounting Office (GAO), and other national and foreign professional associations, in promulgating auditing standards and procedures to prevent fraud in financial statements and other white‐collar crimes. It also examines several fraud cases and the impact of management and employee fraud on the various business sectors such as insurance, banking, health care, and manufacturing, as well as the role of management, the boards of directors, the audit committees, auditors, and fraud examiners and their liability in the fraud prevention and investigation.
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This study aims to assess the effectiveness of forensic accounting techniques to prevent and detect fraudulent activities in firms in Pakistan.
Abstract
Purpose
This study aims to assess the effectiveness of forensic accounting techniques to prevent and detect fraudulent activities in firms in Pakistan.
Design/methodology/approach
A descriptive research approach has been adopted in this study. Primary data has been collected through structured questionnaires distributed to professionals from investigating firms, professional bodies and field researchers. The independent variables that were analyzed included fraud investigation, litigation support and dispute resolution, whereas the dependent variables were fraud detection and prevention. The Statistical Package for Social Sciences has been used for data analysis to derive objective results.
Findings
This research reveals that forensic accounting techniques such as fraud investigation, litigation support and dispute resolution have a positive impact on fraud detection and prevention in Pakistani firms.
Practical implications
Firms should train staff on forensic accounting techniques, implement fraud risk management and anti-corruption policies, conduct regular financial statement audits and develop a whistleblower protection program to encourage employees to report fraudulent activities. The government should develop regulations and guidelines to promote the use of forensic accounting in firms.
Originality/value
This study is covering the gap in literature on financial fraud and forensic accounting practices concerning emerging economies such as Pakistan. This study can serve as a valuable resource for firms and policymakers to strengthen their fraud prevention efforts and build a more robust culture of financial integrity.
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Zabihollah Rezaee, D. Larry Crumbley and Robert C. Elmore
Abdul Rahman Al Natour, Hamzah Al-Mawali, Hala Zaidan and Yasmeen Hany Zaky Said
This paper aims to investigate the role of forensic accounting skills in enhancing auditor’s self-efficacy towards fraud detection in Egypt. Additionally, it explores the…
Abstract
Purpose
This paper aims to investigate the role of forensic accounting skills in enhancing auditor’s self-efficacy towards fraud detection in Egypt. Additionally, it explores the moderating effect of computer-assisted audit techniques and tools (CAATTs) application on the relationship between accounting and auditing skills and auditor’s self-efficacy, as well as its role in enhancing fraud detection.
Design/methodology/approach
A cross-sectional survey was developed and distributed to 117 external auditors working in Egypt. Partial least square structural equation modelling is used to examine the study hypotheses.
Findings
The results show a significant direct relationship between effective communication skills, psycho-social skills, accounting and auditing skills and an auditor’s self-efficacy. Additionally, the results show a significant direct relationship between auditor’s self-efficacy and fraud detection. It is revealed that CAATTs application moderate the relationship between auditor’s self-efficacy and fraud detection. In contrast, the results do not show a significant relationship between technical and analytical skills and auditor’s self-efficacy.
Originality/value
The originality of this research paper lies in its exploration of the role of forensic accounting skills in enhancing auditor’s self-efficacy towards fraud detection in Egypt. It sheds light on the role of improved auditor’s self-efficacy in detecting fraud. Additionally, this study further enhances the understanding of the potential benefits of using technological advancements in the audit process. It provides insights for accounting professionals and regulatory bodies in Egypt, highlighting the importance of leveraging forensic accounting skills and using CAATTs to enhance fraud detection efforts.
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Dwi Marlina Wijayanti, Yayu Putri Senjani and Wilda Farah
This study aims to explore personal and organizational factors in mitigating fraud intention through machiavellian personality, altruistic personality, religiousity…
Abstract
Purpose
This study aims to explore personal and organizational factors in mitigating fraud intention through machiavellian personality, altruistic personality, religiousity, whistleblowing system, and accounting firm size. Companies will suffer greater losses if they cannot prevent fraudulent practices. The fraud hexagon theory is considered effective in detecting the possibility of fraud and the tendency of fraud motivated by personal and organizational factors. Therefore, the researchers examined several factors, including Machiavellian, altruism, religiosity, whistleblowing system and accounting firm size in mitigating fraud intention.
Design/methodology/approach
This study used a self-administered survey of accountants in Indonesia. The accountants were selected as the sample because the accounting profession has considerable potential in committing fraud. To avoid common method bias, the authors performed ex ante and ex post on the questionnaire. This research model was tested using structural equation modeling-partial least square.
Findings
The results revealed that personal factors in the form of Machiavellian, altruism and religiosity had a direct impact on decreasing fraud intention. In addition, whistleblowing system and accounting firm size were able to promote the effectiveness of fraud mitigation.
Research limitations/implications
This study uses one profession, namely, accountants, so it requires further research to see the similarity of results in other professions.
Practical implications
The results contribute to managerial decision-making. Companies should include personal tests during employee recruitment because personal factors are the key to determining individual fraud behavior.
Social implications
Combining personal factors and organizational factors can promote the success of the internal control system, so that individuals are encouraged to do ethical things.
Originality/value
This study combines personal and organizational factors in mitigating fraud, so as to know accurately which factors are most capable of mitigating fraud.
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