Applied Business Research

Executive Summary of Impact of Forensic Accounting on Fraud Management

Forensic accounting has an impact on organizations globally. Management accountability, corporate governance help detecting financial fraud. The research aims to analyze the impact of forensic accounting its applicability in the system and current forensic accounting firms working in Australia. The research analyzed the need for an anti-fraud procedure and analyzing its performance matrix in the organization to assess the impact of forensic accounting on fraud management. The study structure as a literature review and research methodology. The research design included descriptive resect and analysis of empirical studies in the field of accounting and comparative methodology between the chosen 5 firms and a sample size of 50 employees for assessment of the impact of forensic accounting on fraud. Ascertaining practice business and its elementary use in the business process for maintaining records.

Research Questions and Objectives

Research questions

  • How would forensic accounting impact on the organization
  • What is the relation between forensic accounting and fraud management?

Research objectives

  • To identify the impact of forensic accounting on fraud detection
  • To identify the impact of forensic accounting in the auditing system
  • Implications on the adoption of fraud management on auditing system

Research Background

The key aim of the research is to assess the impact of forensic accounting on fraud management. Corporate accounting has resulted in legal and regulatory standards due to the application of technology, information management (Singleton 2010). Reporting standard has encouraged misconduct among finance professionals. There is a growing need for experts to educate, examine, and address the accusation linked to actions. Forensic accounting refers to comprehensive fraud investigation and theft (Rehman 2019). It is carried by financial accounting professionals for analysis, documentation of financial events. Traditional accounting was not recognized as operating accounting at one time. Forensic accounting emanates social scourges for growth and diversity of opinion in social structure and data gathering and review procedure and reporting. Inherent risk and suspect ability of accounts are to be minted for performance enhancement and management of risk. Accounting fraud is known as the falsification of accounting records to boost income and sales figures (Singleton 2010).

The role of forensic accounting in analyzing the wrong practice and stay of fraud procedure shows the growing importance and fields of interest are for accounting professionals. The irregularity and fraud as the art of criminal deception reflect the misinterpretation of records with evidence of support and accountability in the light of investigation and using accounting techniques in financial reports. Forensic accountants have played an increasingly important role in legal disputes and contribute to viable research on the financial functions of the organization. The key function of forensic audits is the collection of facts for the evaluation of unethical business behavior (Lakshmi 2016). Falsifying records to manipulate and deceive records are part of duplication of records and falsification called as fraud detection. Fraud is exhaustive with impersonation and falsification linked to the poor interest of the company and a decline in shareholder and company value. The failure of statutory auditing has led to a change in mindset not barely limited to litigation in court. The consequences of fraud are not limited to financial but loss of investors and public trust. Fraud has a negative consequence on business practice and the use of accounting disclosures for estimating legal state and summarizing business practice. Internal control and company mechanisms use private practices on employee practice and anti-fraud procedures and consultations. Forensic accounting is based on public, private preventive practice for business application and internal control and economic transactions in business and legal practice.

Literature Review of Impact of Forensic Accounting on Fraud Management

Peterson( 2015) discusses the need for forensic accounting instructions and addresses the thought proving questions whether all cases of fraud should be investigated on priority. The author stresses the scope of the investigation and its contribution to important concerns. Given forensic auditing and corporate governance, corporate crime has posed concerns about the accounting profession. The article establishes the position of forensic auditors for the accounting profession. The allocation of forensic design is limited. The impact of forensic accounting has resulted in company operations and functioning as smooth.on analysis of forensic accounting goal congruence and stakeholders have to investigate deviation and impact on the measurement segregation of duties true and fair state of business to stakeholders. Agbaje (2017) addressed the main objective is to investigate accounting and its role with the case scenario of the Nigerian banking sector and the use of the structured data to track transactions. The author proposed agency theory for internal audit and academic community as a role assigned to a financial consultant in improving financial performance. Enofe(2015) showed in his study showed that the forensic auditing department lacked material resources and examined internal control for forensic accounting services. The valuation of a financial institution in control and audit of the country through primary data shows the secure and ethical conduct due to the policy impactions of government on the firm. he needs for forensic accounting gas increased to conduct business transactions. Abdulrahman (2019) determined forensic accounting techniques prevent fraud in public sector banks. The author used data mining techniques for the investigation of fraud investigation examined the use of trust violations using rationalization. The segregation of duties lists the internal control system and the hiring of experts for providing a wide range of services. Using legal structure for objectivity and fairness has a significant influence on fraud detection and safeguarding employee assets.

For evaluating records, list management requirements for familiar accounting standards and protocols as part of mapping business activities with monetary impact on company interest to prevent inappropriate management for personal interest. Enofe (2015) used variance ANOVA to compare the risk management between the enterprises on communication skills as managers seek to become an independent incorporate organization. The impact of forensic accounting influences credit servicing and cash management. Bassey (2018) describes the monitoring of key banking activities regularly and stated that the upsurge of financial accounting fraud through forensic investigation has impacted business in the economic scenario. Forensic accounting helps in evidence for criminal proceedings and act as an exploratory analysis for identification of fraud. The capacity to comprehend functioning is efficient for forensic accounting to set up preventive strategies. AS (2014) emphasizes on creating awareness among the companies to use corporate measures to prevent fraud. The role of forensic accounting as preparation of business statement show personal attributes forensic accountant to uncover distrust and money laundering impacts due to business management negligence. It includes investigative accounting and litigation support in legal actions and compliance for monitoring business control and management. The future propositions of forensic trends are favorable identification of early warning signs and function of local organizations that use this accounting up to 15% (Dada 2013). The top-level functioning through forensic accounting is the elimination of business support and opportunities in accounting ascertaining business records.

 Forensic accounting provides testimony to set misappropriation, merger, and acquisition for financial decision making. Company's exercise manipulation to hide actual performance to influence the capital structure of the firm. Financial accounting is suitable for legal and provides the highest level of connotation. The conscious deception of money related conditions is part of the legitimate budgetary, engagement of administrative bodies, and organization. The idea of forensic accounting is in the nascent stage with the company very olives aligned for business operations on the professional service and expertise of managing operations through auditing as yearly monitoring. Anomah (2014) stated auditing keeps on affirming the proficient market and financial reports as part of the accounting time frame.

Forensic accounting use master reports and reveals accounted for related figures to support administrative decisions. Inadequacies of traditional accounting explored financial reporting functions for collective wrongdoings on money laundering, valuation of inventories. Cost-benefit analysis for fraud cases highlights the potential for the detection of actual fraud and investigator response (Alao 2019). Regulators have to comply with implementing policy to detect fraud history and misrepresentation for accrual expense and regulatory discipline action. Progress in forensic accounting is dependent on the extent of the policy. The professional network by an external auditor, in the statistical test amplifying public sector accountant with the forensic auditor, can mitigate fraud the ineffective control system and voucher, and cash credit manipulation can be determined through fraud accountants. The perception of judges have an attorney might enhance the system. Another research highlighted the limited development of research as a key hindrance in fraud detection and relied on process control measures. Okoye (2011) stated forensic accounting differs from traditional accounting that has made it effective in fraud investigation and litigation support. Rehman (2019) illustrated the function of forensic accounting as a preventive and detective role for detection and fraud mitigation. He emphasized that forensic accounting detective activities assist in the organization in eliminating fraud in the litigation and settlement process. Dada (2013) evaluated the relationship between forensic accounting fraud investigation support and investigative accounting to measure the impact of forensic accounting for better efficiency using country cases and investigation data by anti-corruption company.

Forensic accounting is a typical standard for financial statement audit and executes litigation as reasonable assurance for truth and opinion as auditors responsibility for the liability exaction gap. Anomah (2014) stressed on the key standard followed in forensic accounting by asset misappropriation analyzing inventory and disbursement of funds snoozed to statutory audit. The author stressed that a leaner and reliable accounting framework is followed false accounting information and liquidity are foundational and interpersonal in the conduct of the interview. The red flag approach based on definite knowledge through research evaluates operational audit, reference checks with positive results in fraud detection. The investigation is based on a design control mechanism by establishing the income and using accounting expertise on an intentional act of deception by management.

Preparation of litigation data for analytics presentation. The author through the fragile management system addresses the need for the application of forensic accounting and the development of relevant skills among professionals. Forensic accounting has a knowledge base in the growing fields of security fraud and insurance claims as a topmost requirement (Lakshmi 2016) The conduct through interpersonal skills for evaluation of management is one of the major aspects of forensic accounting. The detailed research on the firm analysis is critical for reviewing corporate disputes among the management enterprises. The settlement and economic value add to the thorough investigation and management. The academic prospects and deep research gave rise to forensic investigation. The lack of transparency in the financial statement has created a problem. The author specified forensic accounting modify the nature and extent of fraud management. The government authorities should extend the provisions of forensic activities in the business day to day activities. Companies hire a forensic accountant for specialized services. The deliberate practice is evaluated with importance on the forensic accountant. Companies and regulatory bodies investigate and rectify the reporting framework for professionals for developing core skills. Forensic accounting is supported by the organizational system for rationalization as fraud is found to be in practice by management for the perpetration of fraud. The inspection of financial statements and evaluation of records see supported by risk management. The author stressed the operation and governance procedure as a strong sense of employee identification with a lack of objectivity in the assessment of work. Forensic accounting support in litigation revenue analysis shows detailed oriented research to uncover the identification of evidence of dishonesty. The key objective of forensic accounting is opposed to auditors as the importance of forensic accounting in the consciousness of lawyers and juries. The experimental examination indicated an audit mindset for the exploration of practice. The findings provided an alternate view that forensic accounting is an extension of auditing with high fraud risk valuation development in risk scenario in the company 

The document review in the accounting practice monitor the legal counsel and identify fraud activities as authorized for clear moral directions. The use of forensic accounting for security and inherent responsibility for ongoing monitoring and communication of effective programs for removal of misappropriating business records, bribery, extortion curbing economic activities for the proper management system (Lakshmi, 2016). The failure of corporate governance mechanisms to reduce fraud posed threat to government and stakeholders. The auditor's role in accounting realities to carry out financial accounts verification using the accounting standard in the organization. Financial auditors carry out statutory audit here as forensic auditor carry out the investigation or detect the activities suspected that weighs the reliance and demand of forensic accounting. The research aimed to analyze the impact of forensic accounting its applicability in the public system and current forensic accounting firms working in Nigeria (Abulrahman 2014). The research analyzed the need for an anti-fraud procedure and analyzing its performance matrix in the organization to assess the impact of forensic accounting on fraud management as a review and research methodology.

Forensic accountants are endowed with recognition are a critical part of technique procedure and skills evaluation. The area of observation in the study included auditing and analytical trait for banking and financial statement reports. In management firm performance is relative to accounting-based measurement regarding performance tracking. The evidentiary nature of evaluation considers the firm's performance for forensic accounting. For country analysis integrity, objectivity and fairness ranked high level with persistent public firm failure. The limitation on skills should be encouraged to provide adequate training to become an expert for suspicion on the corruption case (Ozili 2015). The integrity of the dependent variable as return on assets and net profit margin has a significant impact on firms' audit and regulatory practice. The objectivity associated with the forensic audit is determined in-depth check that vouches for compliance procedure accuracy. The consideration of potential regulatory with company failure in the public system is related to assessed risk before litigation through stakeholder examination. The excessive pressure and personal net worth are materially threatened for entity operations conditions. The corruption and abuse of position have led to a collapse of the system as occupational misappropriation. Statutory regulation account for business practice in governance as a failure in the case of Kenya without strong corporate governance (Dada 2013)

Jugurnath (2017) states a high level of competence is required carrying the function for data extraction and combating fraudulent activities. The author analyzed that forensic accountants are trained to look beyond complex business developing computerized applications to assist in the analysis of financial accounts. Abulrahman (2019) agreed fake invoices, valuation, and analysis of financial documents are collected to daw irregularity patterns before the lawsuit takes its own time. Poor corporate governance and accounting failure are the major reason for fraud emergence. In his study, he demonstrated that forensic accountants plan management of fraud risk as part of an effective audit plan internal control mechanism developed by the companies. Alao (2019) use financial statement for an analysis of the relationship and financial ratio for digital surveillance and instruction detection by using management, internal and external auditor. The author emphasized the public sector to responsibly engage in funds allocation and providing appropriate training to reduce potential fraud perpetrators. This helps in the evaluation of risk assessment and a strong correlation between forensic auditing identifying banking operation fraud. The Nigerian bank analysis shows forensic auditors not allocated a specific budget comprises their professional integrity. The growing number of official scams and frauds in recent years have made forensic accounting the fastest-growing accounting in high-quality engagement.

Research Design

Research type- The descriptive research will be used for mean, standard deviation on statement analysis. The observed values will be compared based on categorization to understand the residual value. The design used for the research will be descriptive research that will be using qualitative or qualitative research within the study. This will help using dynamic tools for forensic accounting and to understand the difference between conventional accounting in curbing financial crimes.

Type of data -The use of primary data as well as secondary data will be used for the evaluation of forensic accounting. Primary data will be used through the distribution of questionnaires and secondary data through websites, journals, and academic books. The principle will help in identifying the effects of forensic accounting on fraud management. Secondary through website and evaluation for normalization will be taken The questions will be open-ended for normalization of data.

Data collection- The study involves survey research from the accounting firms in Australia. The industry and location were chosen due to ease of accessibility and administer of the results of respondents through rich insights. Survey report through statistical design by appropriate research questions present a recommendation for a change in the current rate for effectiveness. The online survey will be carried out for employee response the use of descriptive research will provide in-depth data by evaluating correlation.

Sample size- The questionnaire will be designed for forensic accounting with a sample size of 50. The reliability measure will be ascertained through survey results. The accounting professional across these 5 firms will be selected. The responses will be measured in agree, disagree, strongly agree, neutral, and strongly disagree. This is to analyze the investigation for possible services on current practice by the firm. The findings of the study will highlight that forensic accounting to detect fraud in the organization. Primary data administered through surveys, observation will be used from the selected population size. This research will assess the impact of accounting system awareness and the applicability of the system with the auditing system. The sampling will be done on a random sampling basis, and an oral interview will be conducted to understand employees' perspectives. Random sampling and the sample size of 50 for effective utilization of resources, and using budgetary resources appropriately as the number of employees from accounting professionals among the 5 organizations will be selected. The geographical location s feed for is Australia the nonresponse will be neutralized for the sampling size without generalization of response on a gender basis. Focus group and interview as solicited approach add to the evaluation of current research for identifying business professionals as specific.

Data analysis - The summary data analysis will be used through mean, percentage, and correlation between the variables. This will help in describing, explaining, and validating results for the forensic system and audit system. They will analyze the implantation of the forensic system, its effect, and use parallel to auditing. The company practice launched anti preventive practice, with unofficial borrowing. The comparative financial research will be used. The outcomes confirmed that an accountant has used forensic skills...The relationship impacts through a degree of consideration on open-ended and close-ended with quantifiable attributes will provide relativeness for results (Ozili 2015) Professional service improvement and recommendation by interview and use of journal will develop forensic accounting prospects in the organization. The findings will provide awareness and key implementation in professional practice for developing mechanisms by classification of results variable on the parameter of efficiency, stronghold. The effectiveness of the employment of forensic accounting and how it strengthens corporate governance by estimating the mean values. Descriptive research will summarize the sample and the measures to conclude the data. The analysis will classify results for firm practice by recording results through electronic devices with password protection measures. The comparative set of questions are related to efficiency and drawbacks witnessed by the current users. Measuring data trends and validating current result practice. This includes accountants company staff, external auditor.

 The use of informed consent and post-trial access will be provided with the participants It will assume the beneficial fr benefits and harms for standard care as not act of coercion and conflict interest from the study to the employer while managing the confidentiality of the participants. The statistical interpretation will be vital for the research and evaluation include graphical interpretation of data. The central tendency measurement would analyze the main functions of forensic accounting and how organizational working is impetigo fraud detection in the organization. The measure will analyze the impact of forensic accounting on controlling monitory scams. The results will be normalized and will uncover the impact on professional firms in Australia. The impact assessment will be through empirical evidence and overhaul of the interview and survey design results. The analysis will use a mixed approach for analyzing both qualitative and quantitative data set as a quantitative instrument phase on qualitative data collection. The use of embedded design will increase research flexibility, and foster scholarly interaction (Grima 2020). In this framework, both qualitative and quantitative methods will be applied to application with interaction with candidates. It will determine the impact on auditing and professional firms. This will assess the impact of forensic auditing with corporate employer use for relevant assessment. 

Ethical Considerations

Ethical consideration in the research was used for research design, knowledge course, and decision making.

  • Secrecy- Confidentiality of the candidates was marinated and the data was kept securely. The data collected through research analysis was used through informed consent and no manipulation of record was done for accounting interpretation of fraud management
  • Respect- The accounting data selected for the evaluation will be taken by abiding organizational efficiency. The study will not impair any regular functioning of the organization during the conduct of the study. The data selection, questionnaire for primary data will be collected following the administrative procedure and no action of coercion will be reflected by the interviewee.
  • Integrity - The operations will be carried in the fair and true interpretation of records to ascertain the analysis of accounting. The listed questions and respond to the question will be regulated through professional service and employee perception and belief
  • Justice- the scale and population selected monitored the elements in equal belief for consensus of the result and assessing the impact. The use of oral principle was abided in a fair adjudication of competing observed during the conduct of the study.
  • The professionals will be asked questions understanding the complexity of work, accountability, legal matters, and corporate governance. They carried the study to evaluate economic and financial crime on how fraud reduction is positively related to accounting.

References for Impact of Forensic Accounting on Fraud Management

Abdulrahman, S. 2019. Forensic accounting and fraud prevention in the Nigerian public sector: A conceptual paper. International Journal of Accounting & Finance Review. 4(2). pp13-21

Alao, N.P., 2019. Fighting fraud in Nigeria Banking industry. An examination of the impact of forensic Auditing. International Journal of Academic Multidisciplinary Research. 3(12), pp. 13-29

Anomah, S., Ayeboafo, B., and Agvabeng, O. 2014. Forensic Accounting – A multifaceted standard for cleaner Stewardship in weak regulatory environments. Research Journal of Finance and Accounting. 2(1), pp. 13-65

Agbaje, Wale. 2017. Effect of Forensic accounting services on fraud reduction in the Nigerian banking industry. Advances in Social Sciences Research Journal. 2(3), pp. 1-56, DOI: 4. 10.14738/assrj.412.3342.

A.S, E., and C.N., E. 2014.The Impact of forensic Auditors in corporate governance research. Journal of Finance and Accounting. 5(8), pp. 1-13

Bassey A.A. 2018. Forensic accounting and financial fraud in Sierra Leonean deposit money banks. European Journal of Accounting, Auditing, and Financial Research, 4(8) pp. 1-19.

Dada, S.O., Owolabi, A., and Okwu, A. 2013. Forensic accounting a panacea to alleviation of fraudulent practices in Nigeria. International Journal of Management and Economic Research, 3(2), pp. 12-56

Enofe, AO., Utomwen, O., and Danjuma, E, J. 2015. The role of forensic accounting in mitigating financial crimes. International Journal of Commerce and Management Research, 2(1), pp. 40-47

Enofe, A.O, Agbonkpolor, OR., and Edebiri, O.J. 2015. Forensic accounting and financial fraud. International Journal of Multidisciplinary Research and development, 10(2),pp. 305-31

Grima, S. Boztepe, E., and Baldacchino, J.P. 2020. Contemporary Issues in Audit Management and Forensic Accounting. Emerald publishing

Jugurnath, B., Bissessur, R., Ramjattn, Y., Soondrum, H., and Seedoyal, A. 2017. Forensic accounting and fraud investigation: An empirical study from Mauritius. International Journal of Management and Applied Science, 3 (7),pp. 20-31.

Lakshmi P., and Ganesh Menon. 2016, Forensic Accounting: A Checkmate for Corporate Fraud”. Journal of Modern Accounting and Auditing 12(9), pp. 23-44

Okoye, IE. 2011. The role of forensic accounting in fraud investigation and litigation support. The Nigerian Academic Forum, 17(1), pp. 34-56

Ozili, P. 2015. Forensic accounting and fraud: A review of literature and policy implications. (2015). International Journal of Accounting and Economic studies, 3(1), pp. 2-13

Rehman, A., & Hashim, F. 2019. Impact of mature corporate governance on detective role of forensic accounting: the case of public listed companies in Oman. KnE Social Sciences, 3(22), pp. 637–665. https://doi.org/10.18502/kss.v3i22.5080

Singleton, W.T., and Singleton, J.A. 2010. Fraud Auditing and Forensic Accounting. Wiley and Sons.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

My Assignment Services- Whatsapp Tap to ChatGet instant assignment help

refresh