IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v4y2020i4p128-143.html
   My bibliography  Save this article

Awareness towards Forensic Accounting and What Non-Accounting Experts Need to Know

Author

Listed:
  • Dewan Azmal Hossain

Abstract

Multidisciplinary areas of accounting are increasing day by day. One such multidisciplinary area is forensic accounting. Due to the increase of corporate frauds like in the cases of Enron and WorldCom, organizations are putting a special effort into the investigation of frauds. To investigate fraud, corporations need to be prepared. One way of this preparation is understanding the ideas of forensic accounting and the scopes and areas of forensic accounting. Not only for corporations but also for non-accounting experts knowledge of forensic accounting is important. This theoretical review deals with these issues and explains the technical terms of forensic accounting that non-accounting experts need to know to understand the basics of forensic accounting. This theoretical review also argues that auditing and forensic accounting are not the same. To be a forensic accountant understanding the term “Due Diligence” is a prerequisite. On the other hand, auditing is merely matching the financial statement with applicable standards. After making a comparison between auditing and forensic accounting, it is discussed that non-accounting experts need to make themselves familiar with financial accounting, financial ratios and also with the specialized analytical tools to understand the nature of the work of forensic accountants, their networking techniques, relation establishing techniques and inferential analysis techniques. This study also provides an extract of awareness towards forensic accounting that Bangladeshi accounting and auditing firms, multinational and local companies have.

Suggested Citation

  • Dewan Azmal Hossain, 2020. "Awareness towards Forensic Accounting and What Non-Accounting Experts Need to Know," International Journal of Science and Business, IJSAB International, vol. 4(4), pages 128-143.
    • Handle: RePEc:aif:journl:v:4:y:2020:i:4:p:128-143
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/519.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-4-issue-4/2854
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McNichols, Maureen F., 2000. "Research design issues in earnings management studies," Journal of Accounting and Public Policy, Elsevier, vol. 19(4-5), pages 313-345.
    2. James A. DiGabriele, 2009. "Implications of regulatory prescriptions and audit standards on the evolution of forensic accounting in the audit process," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 10(2), pages 109-121, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. DEGEORGE, François & DING, Yuan & JEANJEAN, Thomas & STOLOWY, Hervé, 2005. "Does Analyst Following Curb Earnings Management?," HEC Research Papers Series 810, HEC Paris.
    2. repec:dau:papers:123456789/3278 is not listed on IDEAS
    3. Alaa Mansour Zalata & Collins Ntim & Ahmed Aboud & Ernest Gyapong, 2019. "Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle," Journal of Business Ethics, Springer, vol. 160(2), pages 515-534, December.
    4. Araceli Mora Enguidanos & Juan Manuel García Lara & Beatriz García Osma & Ana Gisbert Clemente, 2004. "La Comparabilidad De La Información Contable En Europa: Efectos De La Manipulación Contable Sobre El Nivel De Conservadurismo," Working Papers. Serie EC 2004-14, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    5. Lennox, Clive & Wang, Zi-Tian & Wu, Xi, 2018. "Earnings management, audit adjustments, and the financing of corporate acquisitions: Evidence from China," Journal of Accounting and Economics, Elsevier, vol. 65(1), pages 21-40.
    6. S. Verbruggen & J. Christiaens, 2010. "Earnings Management in Nonprofit Organizations: Does Governmental Financing Play a Role?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/665, Ghent University, Faculty of Economics and Business Administration.
    7. Peter Demerjian & Baruch Lev & Sarah McVay, 2012. "Quantifying Managerial Ability: A New Measure and Validity Tests," Management Science, INFORMS, vol. 58(7), pages 1229-1248, July.
    8. Yongtao Hong & Fariz Huseynov & Wei Zhang, 2014. "Earnings Management and Analyst Following: A Simultaneous Equations Analysis," Financial Management, Financial Management Association International, vol. 43(2), pages 355-390, June.
    9. Johnson, Marilyn F. & Nelson, Karen K. & Frankel, Richard M., 2002. "The Relation Between Auditor's Fees for Non-audit Services and Earnings Quality," Research Papers 1696r, Stanford University, Graduate School of Business.
    10. Ozili, Peterson Kitakogelu, 2021. "Bank earnings management using loan loss provisions: comparing the UK, France, South Africa and Egypt," MPRA Paper 108506, University Library of Munich, Germany.
    11. Anastasia A. Zakolyukina, 2018. "How Common Are Intentional GAAP Violations? Estimates from a Dynamic Model," Journal of Accounting Research, Wiley Blackwell, vol. 56(1), pages 5-44, March.
    12. Trimble, Madeline, 2018. "A reinvestigation into accounting quality following global IFRS adoption: Evidence via earnings distributions," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 33(C), pages 18-39.
    13. Silva, Aldy Fernandes da & Weffort, Elionor Farah Jreige & Flores, Eduardo da Silva & Silva, Glauco Peres da, 2014. "Gerenciamento de resultados e crises econômicas no mercado de capitais brasileiro," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 54(3), May.
    14. Braam, Geert & Nandy, Monomita & Weitzel, Utz & Lodh, Suman, 2015. "Accrual-based and real earnings management and political connections," The International Journal of Accounting, Elsevier, vol. 50(2), pages 111-141.
    15. Iatridis, George, 2010. "International Financial Reporting Standards and the quality of financial statement information," International Review of Financial Analysis, Elsevier, vol. 19(3), pages 193-204, June.
    16. Masahiro Enomoto & Yusuke Fukaya, 2023. "Top Executive Turnover and Loan Loss Provisions: Evidence from Japanese Regional Banks," Discussion Paper Series DP2023-06, Research Institute for Economics & Business Administration, Kobe University.
    17. Ibrahim, Salma & Xu, Li & Kalchev, Georgi & Deal, Candice Linette, 2013. "Legal Consequences of Earnings Components Management," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11, pages 229-259.
    18. Bornemann, Sven & Kick, Thomas & Memmel, Christoph & Pfingsten, Andreas, 2012. "Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germany," Journal of Banking & Finance, Elsevier, vol. 36(8), pages 2403-2415.
    19. Liu, Mingzhi & Shi, Yulin & Wilson, Craig & Wu, Zhenyu, 2017. "Does family involvement explain why corporate social responsibility affects earnings management?," Journal of Business Research, Elsevier, vol. 75(C), pages 8-16.
    20. Hibbert, Ann Marie & Kang, Qiang & Kumar, Alok & Mishra, Suchi, 2020. "Heterogeneous beliefs and return volatility around seasoned equity offerings," Journal of Financial Economics, Elsevier, vol. 137(2), pages 571-589.
    21. Pamela Kent & James Routledge & Jenny Stewart, 2010. "Innate and discretionary accruals quality and corporate governance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(1), pages 171-195, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:journl:v:4:y:2020:i:4:p:128-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.