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A systematic review on forensic accounting and its contribution towards fraud detection and prevention

Baljinder Kaur (Chitkara Business School, Chitkara University, Chandigarh, India)
Kiran Sood (Chitkara Business School, Chitkara University, Chandigarh, India)
Simon Grima (Department of Insurance and Risk Management, University of Malta, Msida, Malta)

Journal of Financial Regulation and Compliance

ISSN: 1358-1988

Article publication date: 7 June 2022

Issue publication date: 9 January 2023

3128

Abstract

Purpose

This paper aims to determine how forensic accounting contributes to fraud detection and prevention and answer the following research questions: What are the standard techniques for fraud detection and prevention; and What are the significant challenges that hinder the application of forensic accounting in fraud prevention and detection?

Design/methodology/approach

The authors use the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method to carry out a systematic literature review (SLR) to identify and assess the existing literature on forensic accounting.

Findings

There exists a positive correlation between forensic accounting and fraud detection and prevention. Moreover, in both the empirical and non-empirical findings, the authors note that fraud is complex, and in carrying out fraud investigations, one must be aware of its complexity.

Practical implications

Although drug counterfeiting is a sector where forensic accountants have paid less attention, it is a rapidly expanding fraud area. This paper finds that to detect fraud at an early stage, one must increase consumer understanding of basic forensic accounting techniques by implementing accurate supply chain monitoring systems and inventory management controls and conducting adequate and effective regulatory, honest and legitimate customs inspections.

Social implications

The major factors that restrict forensic accounting are a lack of awareness and education. Hence, it is essential to incorporate forensic accounting in undergraduate and post-graduate courses.

Originality/value

From the existing literature, it has been observed that very few studies have been conducted in this field using the PRISMA and SLR techniques. Also, the authors carried out a holistic study that focuses on three different areas – fraud detection, fraud prevention and the challenges in forensic accounting.

Keywords

Citation

Kaur, B., Sood, K. and Grima, S. (2023), "A systematic review on forensic accounting and its contribution towards fraud detection and prevention", Journal of Financial Regulation and Compliance, Vol. 31 No. 1, pp. 60-95. https://doi.org/10.1108/JFRC-02-2022-0015

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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