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Article
Publication date: 1 October 2004

A. Seetharaman, M. Senthilvelmurugan and Rajan Periyanayagam

This paper introduces fraud as asset misappropriations (85 per cent of cases), corruption and fraudulent statements. Symptoms include accounting anomalies, lack of…

Abstract

This paper introduces fraud as asset misappropriations (85 per cent of cases), corruption and fraudulent statements. Symptoms include accounting anomalies, lack of internal control environment, lifestyle and behaviour. The most effective tools for fraud detection are internal audit review, specific investigation by management, and whistle‐blowing. The paper details the fraud investigation process and the role of auditors as fraud examiners. The correlation of fraud perpetrators' personality with the size of losses is examined. Personality is analysed into age, gender, position, educational background and collusion. A strong system of internal control is most effective in fraud prevention. Fraud prevention procedures, targeted goals and improvements to system weaknesses feature in the paper. Fraud impacts on accounting transactions in accounts receivable, receipts and disbursements, accounts payable, inventories and fixed assets, and financial reporting. The monetary impact resulting from fraud is analysed by the type of victim and the amount of loss. Internal control and good employment practices prevent fraud and mitigate loss.

Details

Managerial Auditing Journal, vol. 19 no. 8
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 13 February 2017

Reshma Kumari Tiwari and Jasojit Debnath

The purpose of this paper is to develop an insight into the skill sets that forensic accounting practitioners need to possess to succeed in the practice of forensic accounting.

Abstract

Purpose

The purpose of this paper is to develop an insight into the skill sets that forensic accounting practitioners need to possess to succeed in the practice of forensic accounting.

Design/methodology/approach

The present paper is based on a literature review.

Findings

Forensic accounting education is multi-disciplinary. It encompasses auditing, accounting, statistics, information technology (IT), legal rules and human skills. It is similar to auditing, yet different. Hands-on statistical tools act like an additional equipment for quick delivery of the output when data are large. Proficiency in using IT tools is a must to detect cybercrimes. Human skills are gaining importance because of social engineering attacks. Forensic accountants must be acquainted and updated with the relevant laws. Various investigative skills and knowledge are also essential in forensic accounting.

Practical implications

Forensic accounting education can be developed as a separate discipline for proper regulation of forensic accounting profession. In that case, the need for development of separate forensic accounting standards may arise. This issue needs to be dwelt upon by the academia and professional bodies.

Originality/value

The paper will enable the universities/institutes to design the appropriate curricula, assigning due consideration to the required knowledge and skill sets in forensic accounting education.

Details

Journal of Financial Regulation and Compliance, vol. 25 no. 1
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 1 April 2019

Michel Dion

The purpose of this paper is to use Kierkegaard’s life-views (aesthetical, ethicist and religious life-views) for better understanding the way fraudsters are dealing with…

Abstract

Purpose

The purpose of this paper is to use Kierkegaard’s life-views (aesthetical, ethicist and religious life-views) for better understanding the way fraudsters are dealing with their ontic-existentiell guilt, while developing rationalization tactics.

Design/methodology/approach

Rationalization tactics make possible to neutralize moral discomfort about fraudulent practices. Endorsing Kierkegaard life-views actually unveils three basic patterns fraudsters could agree with (consciously or not): the focus for individualization processes, the ontic-existentiell quest and the attitude towards guilt. Each Kierkegaardian life-view has deepened this threefold pattern in a very different way.

Findings

The aesthetician life-view is so emphasizing immediacy and pleasure that it strengthens an amoral perspective. Fraudsters could easily adopt such life-view. The ethicist is so basically concerned with morality (distinction between good and evil) that he/she cannot consciously favour fraudulent practices. At best, fraudsters may be “would-be ethicists”. As long as they are unable to feel repentance, fraudsters will not be able to fully embrace the religious life-view. At best, they may be “would-be religious”.

Research limitations/implications

The way Kierkegaard’s life-views could put light on fraudsters’ rationalization tactics has not been empirically assessed. Empirical studies that would be focussed on such topics should deepen the relevance and meaning of fraudsters’ psychological, sociological, cultural and religious/spiritual traits.

Originality/value

The paper analyzes to what extent fraudsters could feel psychological guilt, as well as ontic-existentiell guilt, as it is grounded on ontological-existential guilt (guilt as an ontological category). Taking Kierkegaard’s life-views as reference pattern, it presents the implications of being oriented towards immediacy/pleasure (avoiding guilt, at any cost), towards freedom (being aware of one’s guilt) or towards the infinite (being fully aware of one’s guilt).

Details

Journal of Financial Crime, vol. 26 no. 2
Type: Research Article
ISSN: 1359-0790

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