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1 – 10 of 611
Open Access
Article
Publication date: 30 November 2023

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.

1563

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.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Open Access
Article
Publication date: 2 July 2021

Hashem Alshurafat, Mohannad Obeid Al Shbail and Ebrahim Mansour

This review aims to provide an understanding of the strengths and weaknesses of forensic accounting education and profession.

17157

Abstract

Purpose

This review aims to provide an understanding of the strengths and weaknesses of forensic accounting education and profession.

Design/methodology/approach

This paper reviews published forensic accounting studies to explore forensic accounting strengths and weaknesses.

Findings

The strengths of forensic accounting are its benefits to students and accounting professionals, the significant need and increasing demand, the new career channels and the reduction of fraud. The weakness factors are the lack of regulation, the lack of control over the profession entry, the lack of agreement on how to teach forensic accounting, the lack of specialized research journals, the misconception of its intrinsic aim, the lack of highly qualified practitioners and educators and the lack of public recognition and occupation reputation.

Practical implications

It is hoped that this structured investigation of the factors relevant to the current and future status of forensic accounting education and profession will provide a sufficient overview of the critical issues and concerns that are important to be known for understanding and advancing the vital application of forensic accounting on the Socio-Economic Development. It is anticipated that this paper has an impact on future policy that ultimately contributes to improving business and limit fraud incidents, thus, it can contribute to business and socio-economic development.

Originality/value

The literature on forensic accounting is extensive and varied. However, there is a lack of comprehensive understanding of the strengths and weaknesses of forensic accounting. This study provided policymakers with a comprehensive understanding of forensic accounting.

Details

Journal of Business and Socio-economic Development, vol. 1 no. 2
Type: Research Article
ISSN: 2635-1374

Keywords

Open Access
Article
Publication date: 28 September 2023

Mohammed A. Alzahrane

The purpose of this study is to evaluate the current state of forensic accounting education in the Kingdom of Saudi Arabia (KSA), as well as to identify the desired aims and…

Abstract

Purpose

The purpose of this study is to evaluate the current state of forensic accounting education in the Kingdom of Saudi Arabia (KSA), as well as to identify the desired aims and skills required to practice forensic accounting as a profession. It also seeks to understand the education and skills provided by KSA forensic accounting education programs, the job skills required by professional accountants and the skills required by professional accountants' employers.

Design/methodology/approach

The study is exploratory in nature. A convenience base sampling approach was used to select the academicians and practitioners working in KSA. Participants were requested to fill out an electronic questionnaire and rank each statement on a 5-point Likert score. The responses were converted and analyzed using the T-test, to evaluate the inter- and intra-group trends in the data.

Findings

The study included 58 responses from practitioners and 30 from academicians. Both groups mentioned that the classroom and the Internet were their primary source of forensic accounting information, especially in professional accounting qualifications. According to the participants, most of the institutions in KSA do not offer forensic accounting courses. Nonetheless, forensic accounting is critical for strengthening the credibility of financial reporting in courtrooms. The study finds subtle inter-group differences regarding the development of an ideal curriculum for forensic accounting, which translates to a bigger difference in curriculum development and practice skills. Both groups were optimistic about the future path of forensic accounting in KSA.

Originality/value

The study reports critical differences between the status of forensic accounting education and the skills required to practice forensic accountancy in KSA.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 1
Type: Research Article
ISSN: 2635-1374

Keywords

Open Access
Article
Publication date: 7 July 2023

Elda du Toit

According to the Association of Certified Fraud Examiners, financial statement fraud represents the smallest amount of fraud cases but results in the greatest monetary loss. The…

4646

Abstract

Purpose

According to the Association of Certified Fraud Examiners, financial statement fraud represents the smallest amount of fraud cases but results in the greatest monetary loss. The researcher previously investigated the characteristics of financial statement fraud and determined the presence of 16 fraud indicators. The purpose of this study is to establish whether investors and other stakeholders can detect and identify financial statement fraud using these characteristics in an analysis of a company’s annual report.

Design/methodology/approach

This study analyses a financial statement fraud case, using the same techniques that were previously applied, including horizontal, vertical and ratio analysis. These are preferred because stakeholders have relatively easy access to them.

Findings

The findings show several fraud characteristics, with a few additional ones not previously found prevalent. Financial statement fraud thus tends to differ between cases. It is also easier to detect and identify fraud indicators ex post facto.

Originality/value

This study is a practical case showing that financial statement fraud can be detected and identified in the financial statements of companies that commit fraud.

Details

Journal of Financial Crime, vol. 31 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Open Access
Article
Publication date: 22 December 2022

Oluwatoyin Esther Akinbowale, Heinz Eckart Klingelhöfer and Mulatu Fekadu Zerihun

This study aims to investigate the feasibility of employing a multi-objectives integer-programming model for effective allocation of resources for cyberfraud mitigation. The…

Abstract

Purpose

This study aims to investigate the feasibility of employing a multi-objectives integer-programming model for effective allocation of resources for cyberfraud mitigation. The formulated objectives are the minimisation of the total allocation cost of the anti-fraud capacities and the maximisation of the forensic accounting capacities in all cyberfraud incident prone spots.

Design/methodology/approach

From the literature survey conducted and primary qualitative data gathered from the 17 licenced banks in South Africa on fraud investigators, the suggested fraud investigators are the organisation’s finance department, the internal audit committee, the external risk manager, accountants and forensic accountants. These five human resource capacities were considered for the formulation of the multi-objectives integer programming (MOIP) model. The MOIP model is employed for the optimisation of the employed capacities for cyberfraud mitigation to ensure the effective allocation and utilisation of human resources. Thus, the MOIP model is validated by a genetic algorithm (GA) solver to obtain the Pareto-optimum solution without the violation of the identified constraints.

Findings

The formulated objective functions are optimised simultaneously. The Pareto front for the two objectives of the MOIP model comprises the set of optimal solutions, which are not dominated by any other feasible solution. These are the feasible choices, which indicate the suitability of the MOIP to achieve the set objectives.

Practical implications

The results obtained indicate the feasibility of simultaneously achieving the minimisation of the total allocation cost of the anti-fraud capacities, or the maximisation of the forensic accounting capacities in all cyberfraud incident prone spots – or the trade-off between them, if they cannot be reached simultaneously. This study recommends the use of an iterative MOIP framework for decision-makers which may aid decision-making with respect to the allocation and utilisation of human resources.

Originality/value

The originality of this work lies in the development of multi-objectives integer-programming model for effective allocation of resources for cyberfraud mitigation.

Details

Journal of Financial Crime, vol. 30 no. 6
Type: Research Article
ISSN: 1359-0790

Keywords

Open Access
Article
Publication date: 10 May 2023

Marko Kureljusic and Erik Karger

Accounting information systems are mainly rule-based, and data are usually available and well-structured. However, many accounting systems are yet to catch up with current…

74780

Abstract

Purpose

Accounting information systems are mainly rule-based, and data are usually available and well-structured. However, many accounting systems are yet to catch up with current technological developments. Thus, artificial intelligence (AI) in financial accounting is often applied only in pilot projects. Using AI-based forecasts in accounting enables proactive management and detailed analysis. However, thus far, there is little knowledge about which prediction models have already been evaluated for accounting problems. Given this lack of research, our study aims to summarize existing findings on how AI is used for forecasting purposes in financial accounting. Therefore, the authors aim to provide a comprehensive overview and agenda for future researchers to gain more generalizable knowledge.

Design/methodology/approach

The authors identify existing research on AI-based forecasting in financial accounting by conducting a systematic literature review. For this purpose, the authors used Scopus and Web of Science as scientific databases. The data collection resulted in a final sample size of 47 studies. These studies were analyzed regarding their forecasting purpose, sample size, period and applied machine learning algorithms.

Findings

The authors identified three application areas and presented details regarding the accuracy and AI methods used. Our findings show that sociotechnical and generalizable knowledge is still missing. Therefore, the authors also develop an open research agenda that future researchers can address to enable the more frequent and efficient use of AI-based forecasts in financial accounting.

Research limitations/implications

Owing to the rapid development of AI algorithms, our results can only provide an overview of the current state of research. Therefore, it is likely that new AI algorithms will be applied, which have not yet been covered in existing research. However, interested researchers can use our findings and future research agenda to develop this field further.

Practical implications

Given the high relevance of AI in financial accounting, our results have several implications and potential benefits for practitioners. First, the authors provide an overview of AI algorithms used in different accounting use cases. Based on this overview, companies can evaluate the AI algorithms that are most suitable for their practical needs. Second, practitioners can use our results as a benchmark of what prediction accuracy is achievable and should strive for. Finally, our study identified several blind spots in the research, such as ensuring employee acceptance of machine learning algorithms in companies. However, companies should consider this to implement AI in financial accounting successfully.

Originality/value

To the best of our knowledge, no study has yet been conducted that provided a comprehensive overview of AI-based forecasting in financial accounting. Given the high potential of AI in accounting, the authors aimed to bridge this research gap. Moreover, our cross-application view provides general insights into the superiority of specific algorithms.

Details

Journal of Applied Accounting Research, vol. 25 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Open Access
Article
Publication date: 28 August 2019

Mark Lokanan, Vincent Tran and Nam Hoai Vuong

The purpose of this paper is to evaluate the possibility of rating the credit worthiness of a firm’s quarterly financial report using a dynamic anomaly detection method.

16279

Abstract

Purpose

The purpose of this paper is to evaluate the possibility of rating the credit worthiness of a firm’s quarterly financial report using a dynamic anomaly detection method.

Design/methodology/approach

The study uses a data set containing financial statements from Quarter 1 – 2001 to Quarter 4 – 2016 of 937 Vietnamese listed firms. In sum, 24 fundamental financial indices are chosen as control variables. The study employs the Mahalanobis distance to measure the proximity of each data point from the centroid of the distribution to point out the extent of the anomaly.

Findings

The finding shows that the model is capable of ranking quarterly financial reports in terms of credit worthiness. The execution of the model on all observations also revealed that most financial statements of Vietnamese listed firms are trustworthy, while almost a quarter of them are highly anomalous and questionable.

Research limitations/implications

The study faces several limitations, including the availability of genuine accounting data from stock exchanges, the strong assumptions of a simple statistical distribution, the restricted timeframe of financial data and the sensitivity of the thresholds for anomaly levels.

Practical implications

The study opens an avenue for ordinary users of financial information to process the data and question the validity of the numbers presented by listed firms. Furthermore, if fraud information is available, similar research can be conducted to examine the tendency for companies with anomalous financial reports to commit fraud.

Originality/value

This is the first paper of its kind that attempts to build an anomaly detection model for Vietnamese listed companies.

Details

Asian Journal of Accounting Research, vol. 4 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 11 April 2023

Collins Sankay Oboh

This study examines the association between emotional intelligence (EI) and the tendency of future accountants to rationalize and engage in occupational fraud.

1479

Abstract

Purpose

This study examines the association between emotional intelligence (EI) and the tendency of future accountants to rationalize and engage in occupational fraud.

Design/methodology/approach

The study adopts a survey methodology and uses a questionnaire containing a fraud scenario and EI construct to gather data from 225 participants. It performed a Cronbach alpha to assess the measurement parameters consistency of EI and fraud tendency and employed Pearson correlation and regression analysis to test its hypothesis.

Findings

The study found that future accountants in Nigeria are emotionally intelligent and have a high fraud tendency. Also, it found a significant and positive association between EI and fraud tendency, suggesting that future accountants that are emotionally intelligent have a higher tendency to rationalize and engage in occupational fraud. In addition, the study found that academic intelligence, a control variable, positively associates with fraud tendency.

Practical implications

The study offers rare insights into the fraud tendency of future accountants, which would benefit the counter fraud community in Nigeria and other developing countries. Recruiters and employers will find the study beneficial in decision-making on job recruitment, placements and moral orientation for prospective accountant employees.

Originality/value

The study is the first to directly associate EI with the fraud tendency of future accountants from a developing country with high fraud profile and underdeveloped counter fraud strategy. Thus, it provides a benchmark for future studies in other developing countries.

Details

European Journal of Management Studies, vol. 28 no. 1
Type: Research Article
ISSN: 2183-4172

Keywords

Open Access
Article
Publication date: 25 December 2023

Rahaf Ibrahim Alkhalaileh, Hashem Alshurafat and Huthaifa Al-Hazaima

This research study aims to identify barriers to incorporating forensic accounting into accounting curricula in Jordanian universities. The study examines the differences in…

Abstract

Purpose

This research study aims to identify barriers to incorporating forensic accounting into accounting curricula in Jordanian universities. The study examines the differences in perspectives among various accounting education stakeholders, including students, educators and accounting and auditing employees/managers, on forensic accounting education.

Design/methodology/approach

The research methodology is quantitative and involves administering a survey questionnaire. The data obtained are analyzed using techniques including t-test analysis, one-way ANOVA and post-hoc.

Findings

The study reveals that educators have a more favorable view toward incorporating forensic accounting into university accounting curricula in Jordan, while accountants and auditors (employees/managers) are more strongly convinced of its importance. Furthermore, the biggest challenge to integrating forensic accounting, as perceived by stakeholders, is the lack of related job opportunities.

Practical implications

The study significantly contributes to accounting education research by providing valuable information on barriers to incorporating forensic accounting into the accounting curricula of Jordanian educational institutions from the perceptive of various stakeholders. Therefore, this study may assist educators in overcoming obstacles in offering forensic accounting education.

Originality/value

The study carries important implications for the inclusion of forensic accounting in the accounting curricula of Jordanian educational institutions. By comprehending the different viewpoints of various stakeholders, educators and policymakers can address recognized challenges and strive for the effective integration of forensic accounting in accounting curricula. As a result, accounting students will receive a more comprehensive education, and graduates will be better equipped for successful careers in the field.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 2
Type: Research Article
ISSN: 2635-1374

Keywords

Open Access
Article
Publication date: 19 August 2021

Silvana Secinaro, Francesca Dal Mas, Valerio Brescia and Davide Calandra

This study aims to offer a bibliometric and coding analysis of blockchain articles published in the accounting, auditing and accountability fields.

12053

Abstract

Purpose

This study aims to offer a bibliometric and coding analysis of blockchain articles published in the accounting, auditing and accountability fields.

Design/methodology/approach

The data were collected using the Scopus database and a bibliometric and qualitative coding analysis with the keywords “blockchain” and “accounting” or “auditing” or “accountability.” Of the 514 initial sources, 93 peer-reviewed papers, book chapters and conference proceedings in the areas of business, management and accounting were finally selected. Nonscientific sources such as nonpeer-reviewed books and white papers were excluded.

Findings

This study reveals a promising and multidisciplinary field of research dominated by scholars and less by practitioners. Qualitative research, especially discourse analysis, is the most used method among authors. This study gives some useful insights about blockchain's definition and characteristics, business models, processes involved, connection with other technologies and relationships with accounting theories. Among the most interesting insights, the results confirm that technology as an external force can create an intersection among several research areas: accounting, auditing, accountability, business, management, computer science and engineering fields. Finally, in terms of research themes, although blockchain has a clear effect on auditing accounting, the links with the area of accountability are less clear and validated.

Originality/value

This study highlights the current state of the field, combining methodological approaches and providing valuable future research insights. Additionally, it is also a starting point for professionals to fully understand blockchain's characteristics and potential with a constructive and systemic approach.

Details

Accounting, Auditing & Accountability Journal, vol. 35 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

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