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Forensic accounting theory

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  • Ozili, Peterson K

Abstract

This article presents a forensic accounting theory. Forensic accounting theory is an explanation of why and how the choice of methods and techniques used to detect creative accounting or fraudulent manipulations in financial reporting, and the outcome of using such methods or techniques, depends on the accounting and non-accounting decisions taken into consideration by the forensic accountant or investigator. The forensic accounting theory developed in this paper is useful to both practitioners and academics, and the resulting contribution to accounting theory and forensic science are useful to the problem-solving process in the global fight against financial crime.m

Suggested Citation

  • Ozili, Peterson K, 2020. "Forensic accounting theory," MPRA Paper 102566, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102566
    as

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    File URL: https://mpra.ub.uni-muenchen.de/102566/1/MPRA_paper_102566.pdf
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    References listed on IDEAS

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    1. Erik Lie, 2005. "On the Timing of CEO Stock Option Awards," Management Science, INFORMS, vol. 51(5), pages 802-812, May.
    2. Erickson, M & Mayhew, BW & Felix, WL, 2000. "Why do audits fail? Evidence from Lincoln Savings and Loan," Journal of Accounting Research, Wiley Blackwell, vol. 38(1), pages 165-194.
    3. Burns, Natasha & Kedia, Simi, 2006. "The impact of performance-based compensation on misreporting," Journal of Financial Economics, Elsevier, vol. 79(1), pages 35-67, January.
    4. Denis, David J. & Hanouna, Paul & Sarin, Atulya, 2006. "Is there a dark side to incentive compensation?," Journal of Corporate Finance, Elsevier, vol. 12(3), pages 467-488, June.
    5. Mark E. Lokanan, 2015. "Challenges to the fraud triangle: Questions on its usefulness," Accounting Forum, Taylor & Francis Journals, vol. 39(3), pages 201-224, September.
    6. Ozili, Peterson K, 2015. "Forensic Accounting and Fraud: A Review of Literature and Policy Implications," MPRA Paper 77236, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    fraud; forensic accounting; financial reporting; fraud detection; forensic accounting theory; accounting; financial accounting; forensic science; accounting education; forensic accountant.;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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