scholarly journals The development of forensic accounting and the challenges in the modern environment

Revizor ◽  
2021 ◽  
Vol 24 (95-96) ◽  
pp. 77-90
Author(s):  
Snežana Knežević ◽  
Stefan Milojević ◽  
Jasmina Paunović
Keyword(s):  
Financial Reporting ◽  
Financial Analysis ◽  
Academic Research ◽  
Business Environment ◽  
Future Research ◽  
Legal Action ◽  
Fraudulent Financial Reporting ◽  
Legal Process ◽  
Forensic Accounting

The increasingly complex business environment and the growing tendency for people to take legal action have led to a demand for accountants who understand the legal process and who can conduct investigations, perform financial analysis and other accounting or auditing procedures at a level acceptable to the courts. Accordingly, some factors that influence the occurrence of fraud and the growth of literature related to forensic accounting and fraudulent financial reporting are presented. In addition, significant advances in the literature and the challenges that fraud poses to academic research and corporate practice have been identified, and a set of issues has been presented and identified as important directions for future research regarding the role of forensic accounting in detecting fraudulent financial reporting. This paper is intended to stimulate discussions and future research on identified problems, especially within national frameworks. And finally, some directions have been suggested for future research as well as for the development of the profession. The increasingly complex business environment and the growing tendency for people to take legal action have led to a demand for accountants who understand the legal process and who can conduct investigations, perform financial analysis and other accounting or auditing procedures at a level acceptable to the courts.

Audit Committee Oversight of Fraud Risk: The Role of Social Ties, Professional Ties, and Governance Characteristics

2017 ◽  
Vol 31 (3) ◽  
pp. 21-38 ◽  
Author(s):  
Robert M. Wilbanks ◽  
Dana R. Hermanson ◽  
Vineeta D. Sharma
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Social Ties ◽  
Internal Audit ◽  
Future Research ◽  
Professional Experience ◽  
Fraudulent Financial Reporting ◽  
Fraud Risk ◽  
Public Company

SYNOPSIS This study examines audit committee (AC) oversight of fraudulent financial reporting (FFR) risk and management integrity, and how such oversight varies with AC social ties, professional ties, and governance characteristics. Specifically, based on a survey of 134 U.S. public company AC members, we find that AC participants with social ties (i.e., personal ties) to the CEO are negatively associated with AC actions to assess FFR risk and management integrity. Further, the AC appears to cut back on more observable FFR and MI actions when the responding AC member has a social tie to the CEO, consistent with socially connected ACs being reluctant to engage in observable monitoring actions that could jeopardize a social tie to the CEO. However, AC participants with professional ties to other independent directors and those with professional experience as corporate controllers are positively related to such actions. We also find that AC size is positively related to FFR risk assessment, while female AC participants and those serving on boards with greater independence are more likely to report engaging in AC activities to assess management integrity. Finally, when asked more broadly about who they rely on and who is responsible for assessing the risk of FFR, AC members mainly point to the external audit partner, CFO, and head of internal audit. We discuss implications and directions for future research.

Human Disposition and the Fraud Cycle

2013 ◽  
Vol 2 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Vasant Raval
Keyword(s):  
Financial Reporting ◽  
Future Research ◽  
Fraudulent Financial Reporting ◽  
Behavioral Tendencies ◽  
Constituent Elements

Using primarily Eastern metaphysical concepts as a guide, this study presents a theory for an interpretation of the role of human disposition in fraudulent financial reporting. The theory proposed has two major components, the TRS (Tamsik-Rajsik-Sattvik) framework and the LAG (Lust-Anger-Greed) cycle. The TRS framework includes the constituent elements of a person and the resulting dominant behavioral tendencies of the person. The LAG cycle suggests how these tendencies operate in an act of fraud. The theory is thus potentially useful in the explanation of fraud as a human act. Moreover, in a predictive manner, it also has the potential to differentiate actors (of fraud) from non-actors. The study provides a series of propositions for future research.

Using Game Theory and Strategic Reasoning Concepts to Prevent and Detect Fraud

2004 ◽  
Vol 18 (3) ◽  
pp. 173-184 ◽  
Author(s):  
T. Jeffrey Wilks ◽  
Mark F. Zimbelman
Keyword(s):  
Game Theory ◽  
Financial Reporting ◽  
Academic Research ◽  
Future Research ◽  
Fraudulent Financial Reporting ◽  
Plan Implementation ◽  
Strategic Reasoning ◽  
Audit Planning ◽  
Fraud Risk ◽  
Auditing Standards

This commentary examines academic research that can assist auditors in detecting and preventing fraudulent financial reporting. We review theoretical and empirical research from game theory, social psychology, judgment and decision making, and auditing to identify improvements in audit practice and promising areas for future research. This review focuses on the strategic fraud setting and suggests modifications in auditing standards that should facilitate auditors' use of strategic reasoning in this setting. We emphasize three critical audit tasks—fraud risk assessment, audit planning, and audit plan implementation—and recommend changes to current auditing standards and identify potential research questions for each task.

Does Recent Academic Research Support Changes to Audit Reporting Standards?

2016 ◽  
Vol 30 (2) ◽  
pp. 255-275 ◽  
Author(s):  
Jean Bédard ◽  
Paul Coram ◽  
Reza Espahbodi ◽  
Theodore J. Mock
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Financial Statements ◽  
Future Research ◽  
Research Support ◽  
The Public ◽  
Market Participants ◽  
Information Gap ◽  
Public Company ◽  
Reporting Process

SYNOPSIS The Public Company Accounting Oversight Board (PCAOB), the International Auditing and Assurance Standards Board (IAASB), and the U.K. Financial Reporting Council (FRC) have proposed or approved standards that significantly change the independent auditor's report. These initiatives require the auditor to make additional disclosures intended to close the information gap; that is, the gap between the information users desire and the information available through the audited financial statements, other corporate disclosures, and the auditor's report. They are also intended to improve the relevancy of the auditor's report. We augment prior academic research by providing standard setters with an updated synthesis of relevant research. More importantly, we provide an assessment of whether the changes are likely to close the information gap, which is important to financial market participants and other stakeholders in the audit reporting process. Also, we identify areas where there seems to be a lack of sufficient research. These results are of interest to all stakeholders in the audit reporting process, as the changes to the auditor's report are fundamental. Additionally, our summaries of research on the auditor's report highlight where there is limited research or inconsistent results, which will help academics identify important opportunities for future research.

scholarly journals Corporate headquarters in the twenty-first century: an organization design perspective

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Sven Kunisch ◽  
Markus Menz ◽  
David Collis
Keyword(s):  
Twentieth Century ◽  
Organization Design ◽  
Business Environment ◽  
First Century ◽  
Future Research ◽  
Corporate Headquarters ◽  
Special Collection ◽  
Design Perspective ◽  
Twenty First Century

Abstract The corporate headquarters (CHQ) of the multi-business enterprise, which emerged as the dominant organizational form for the conduct of business in the twentieth century, has attracted considerable scholarly attention. As the business environment undergoes a fundamental transition in the twenty-first century, we believe that understanding the evolving role of the CHQ from an organization design perspective will offer unique insights into the nature of business activity in the future. The purpose of this article, in keeping with the theme of the Journal of Organization Design Special Collection, is thus to invigorate research into the CHQ. We begin by explicating four canonical questions related to the design of the CHQ. We then survey fundamental changes in the business environment occurring in the twenty-first century, and discuss their potential implications for CHQ design. When suitable here we also refer to the contributions published in our Special Collection. Finally, we put forward recommendations for advancements and new directions for future research to foster a deeper and broader understanding of the topic. We believe that we are on the cusp of a change in the CHQ as radical as that which saw its initial emergence in the late nineteenth/early twentieth century. Exactly what form that change will take remains for practitioners and researchers to inform.

scholarly journals Combating economic and financial crimes in nigeria: the role of the forensic accountant

2020 ◽  
Vol 10 (4) ◽  
pp. 12-28
Author(s):  
Felix Ogbeiyulu Umanhonlen ◽  
Otakefe J.P ◽  
Killian Osikhenaogiedu
Keyword(s):  
Internal Control ◽  
Expert Witness ◽  
Future Research ◽  
Financial Crime ◽  
Public And Private ◽  
Forensic Accounting ◽  
Financial Crimes ◽  
Routine Basis ◽  
Expert’S Opinion

Economic and financial crime has been a clog in the wheel of progressand a majorproblem be devil economic prosperity and growth modelsof most nations of the world. Due to this government in some quarters have had the reason to set upinstitutions to unravel as well asdispels themenace. Despite this,fewer than much success mayhave been achieved by the respective anti-corruption agencies as a result of not identifying with therole of forensic accounting science in planning, investigating and representing expert witness/testimony on be fore law suit. This paper attempts toappraisethe role of forensic accountant in combating economic and financial crimes in Nigeria. The paper explored relevance components of economic and financial crimes and extensively discussed concepts of crime and criminality, corruption, white collar and cybercrimes. Specifically, the study reviews the historical antidotes of forensic accounting, emphasizes on the role of forensic accounting science in litigation and forensic accountantensuring economic and financial crime immersed. Moreso, the study identifies basis for future research, some potential crimes factors and forensic accounting science expert’s opinion in crime scene as well as reviewed prior studies and gap envisaged. Essentially, the study reviewed theoretical issues using qualitative approach thereby involving a survey of literature to decipher relevant issues. It there fore sought that forensic accounting serves the basis for investigation, expert witness testimonyand opinion of expert in lawsuit so as to unravel crimes, and reach resolution for recovering. However, concludes that there is need to involve and embrace accounting expert science in all facets of crime investigation in order to accelerate detections and ameliorate incidences of failed attempt on crime recovery related to economic and financial crimes. Therefore, propose that public and private sectors should engage, recruit and employservices of and/or stationed forensic accountant to review,strengthen, reappraises records and internal control on routine basis. Also to check incidences of crime perception as well as anti-corruption agencies saddled with the responsibilities of fighting economic and financial crimes to employ and adopt engagement of forensic accountant on regular basis among others for all-inclusiveness works of planning, investigating, detecting,and recovering.

scholarly journals Measuring the independence of audit oversight entities: a comparative empirical analysis

2017 ◽  
Vol 30 (2) ◽  
pp. 165-184 ◽  
Author(s):  
Lukas Loehlein
Keyword(s):  
Financial Reporting ◽  
Policy Research ◽  
Essential Elements ◽  
Future Research ◽  
Public Confidence ◽  
Content Type ◽  
Legal Provisions ◽  
Accounting Scandals ◽  
Independent Audit

Purpose Independent audit oversight is a prerequisite for restoring public confidence in financial reporting and auditing after the past accounting scandals and the financial crisis. By analysing and comparing the independence of the audit oversight boards of 27 European Member States and the USA, this study aims to provide insights into the question of how independent “independent” audit oversight boards are. Design/methodology/approach Independence is measured in terms of the organisational compositions and regulatory competences of the audit oversight authorities. The data were collected through an e-mail questionnaire that was sent to all European oversight authorities, and by analysing legal provisions of various regulators. The results are analysed and visualised by a Partial Order Scalogram Analysis with Coordinates, which allows conclusions about the similarities of various systems and their relative levels of independence. Both measurements are then equally combined into one value of material independence, which is used to rank the oversight authorities. Findings Although all countries encounter similar pressures to establish profession-independent oversight systems, this study identifies how differently “independence” has been translated in regulatory outcomes. While all countries claim to possess formal independent oversight bodies, there is a visible gap between countries with comparatively strong independent oversight authorities and systems in which accounting bodies still maintain far-reaching regulatory influence. At the same time, the results question the role of the Public Company Accounting Oversight Board (PCAOB) as the globally perceived benchmark of an entirely independent regulator. Research limitations/implications This study focuses on formal independence rather than de-facto independence. Future research has, therefore, to address how these formal arrangements have evolved in regulatory practice. Practical implications Policy makers around the world perceive independent oversight as one of the essential elements of regulatory reforms aiming at restoring public confidence in the aftermath of past accounting scandals. This study enables the comparison and benchmarking of national specific regulatory designs with other forms of independent oversight. Originality/value Although the role of independent regulation is a recurring theme in accounting research, a systematic and encompassing comparison of the intertwining of audit oversight authorities and the accounting profession has not yet been provided. This study takes a first step towards providing a quantifiable measure of the formal independence of audit oversight authorities by mobilizing concepts, methods and prior findings from the field of public policy research.

Modern Downsizing

2021 ◽  
pp. 1970-1983
Author(s):  
Grzegorz Wojtkowiak
Keyword(s):  
Financial Analysis ◽  
Management Tool ◽  
Future Research ◽  
Research Directions ◽  
Good Practices ◽  
Strategic Option ◽  
Wide Range ◽  
Future Research Directions ◽  
Points Of View

The aim of the chapter is to present the concept of downsizing from different points of view: as a strategic option, as a management tool and as a phenomenon. It describes the evolution of the term, its definitions, and different directions of development. A scale and possible outcomes are described on the basis of financial analysis; however it also discusses the role of non-financial aspects. The chapter points out reasons, aims and a wide range of tools that may be used during implementation of downsizing. One of the conclusions of the chapter is to present future research directions aiming at increasing knowledge of managers and providing them with detailed good practices.

Play It Like Beckham!

2017 ◽  
pp. 43-61
Author(s):  
Sylvaine Castellano ◽  
Insaf Khelladi
Keyword(s):  
Social Networks ◽  
Social Media ◽  
Academic Research ◽  
Future Research ◽  
The Internet ◽  
Research Directions ◽  
Media Usage ◽  
Future Research Directions ◽  
The Impact

New opportunities and challenges are emerging thanks to the growing Internet importance and social media usage. Although practitioners have already recognized the strategic dimension of e-reputation and the power of social media, academic research is still in its infancy when it comes to e-reputation determinants in a social networks context. A study was conducted in the sports setting to explore the impact of social networks on the sportspeople's e-reputation. Whereas the study emphasized (1) the influence of social networks' perception on the sportspeople's e-reputation, and the neutral roles of (2) the motives for following sportspeople online, and (3) the negative content on the Internet, additional insights are formulated on maintaining, restoring and managing e-reputation on social networks. Finally, future research directions are suggested on the role of image to control e-reputation.

scholarly journals Barriers to implementing the International Integrated Reporting Framework

2017 ◽  
Vol 25 (4) ◽  
pp. 461-480 ◽  
Author(s):  
John Dumay ◽  
Cristiana Bernardi ◽  
James Guthrie ◽  
Matteo La Torre
Keyword(s):  
Financial Reporting ◽  
Early Stage ◽  
Academic Research ◽  
General Concept ◽  
Future Research ◽  
The European Union ◽  
Integrated Reporting ◽  
Content Type ◽  
Stage Of Development ◽  
Reporting Framework

Purpose This paper is motivated by the call for feedback by the International Integrated Reporting Council (IIRC) from all stakeholders with knowledge of the International Integrated Reporting Framework (<IRF>) and specifically of the enablers, incentives and barriers to its implementation. The paper synthesises insights from contemporary accounting research into integrated reporting (IR) as a general concept and <IR> as espoused by the IIRC in the <IRF> (IIRC, 2013). The authors specifically focus on possible barriers and emphasise the specific issues the authors feel could be rectified to advance the <IRF>, along with the areas that may potentially hinder its wider adoption and implementation. Design/methodology/approach The paper draws upon and synthesises academic analysis and insights provided in the IR and <IR> academic literature as well as various directives, policy and framework pronouncements. Findings The flexibility and lack of prescription concerning actual disclosures and metrics in the <IRF> could allow it to be used for compliance, regardless of the other benefits lauded by the IIRC. Thus the authors see forces, both external and internal, driving <IR> adoption, with one prominent example being the European Union Directive on non-financial reporting. Because of the different ways in which IR is understood and enacted, there are numerous theoretical and empirical challenges for academics. The authors paper highlights potential areas for further robust academic research and the need to contribute to <IR> policy and practice. Research limitations/implications The paper provides the IIRC, academics, regulators and reporting organisations with insights into current practice and the <IRF>. The authors highlight the need for further development and evidence to help inform improvements both from a policy and a practice perspective. A key limitation of the authors’ work is that the authors draw upon a synthesis of the existing literature which is still in an early stage of development. Originality/value The paper provides the IIRC with several insights into the current <IRF> and specifically with the enablers, incentives and barriers to its implementation. Also, it provides academic researchers with a number of important observations and an agenda upon which the authors can build their future research.

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