The Role of Forensic Accounting in Reducing Earnings Management Practices
Abstract
The importance of the research can be summarized through the contribution of forensic accounting in reducing earnings management practices through the use of forensic accounting techniques. Forensic accounting is an important issue in developing accounting and facing earnings management practices. The aim of the research is to determine the methods of forensic accounting that help reduce earnings management practices. And to identify the most important obstacles that limit the application of judicial accountability. The research reached conclusions that forensic accounting has an important role in revealing false financial statements related to taxable profits. Forensic accounting enhances the work of oversight institutions, particularly the Integrity Commission and external audit offices. Forensic accounting helps reduce creative accounting practices by identifying sources of misleading revenues, expenses and amounts disbursed through a post-audit that helps in revealing the real revenues and their timing. Forensic accounting limits creative accounting practices by recognizing true revenue. The absence of standards, legal legislation and approved guidelines regulating the work of a chartered accountant. The lack of interest in the forensic accountant on the part of universities in the educational curricula.
References
1.Adhikara, MF Arrozi.,(CREATIVEACCOUNTING: Apakah SuatuTindakan Ilegal), AKRUAL:Jurnal Akuntansi , ( 2).2 (2011): 109-135
2.Aksoy, T., & Uzay, S. (2021).Relationship between Fraudauditing and Forensic accounting.In Auditing Ecosystem andStrategic Accounting in the DigitalEra (pp. 127-146). Springer, Chamee.
3.Al-Abedi, T. K., Hasen, A. M.,Mohaisen, H. A., & Flayyih, H. H.(2022). The Impact of CorporateGovernance on AccountingConservatism in the FinancialStatements of Justice Shareholders:https://doi. org/10.37178/ca-c.23.1. 025. Central Asia and theCaucasus, 23(1), 272-281.e
4.Albizri, A., Appelbaum, D., &Rizzotto, N. (2019). Evaluation offinancial statements fraud detectionresearch: a multi-disciplinaryanalysis. International Journal ofDisclosure and Governance, 16(4),206-241e.
5.Ali Shah, Syed Zulfiqar, Safdar A.Butt, and Dr Bin Tariq ,(Use orabuse of creative accountingtechniques ),International Journalof Trade, Economics and Finance,Vol.( 2), No.(6) (2011)
6.Azadzadeh, Adeleh , (Analysis ofthe Necessity to Develop theForensic Accounting in Iran),Advances in EnvironmentalBiology, Vol.( 8), No.(19) (2014):170-173
7.Bassey, E. B., (Effect of forensicaccounting on the management offraud i microfinance institutions inCross River State), Journal ofEconomics and Finance, Vol. (9),No.(4) (2018)
8.Biswas, Mahua, Hiremath, KiranG, and Shalini R ,( ForensicAccounting in Indian Perspective) ,The 5th International Conferenceon Financial Criminology (ICFC)“Global Trends in FinancialCrimes in the New Economies ,(2013.)
9.Blazek, R. (2021). Creativeaccounting as a global tool for taxoptimization. In SHS Web ofConferences (Vol. 92). EDPSciencesee
10.Blessing. Ijeoma, ( 2015 ) ,(Empirical Analysis on the Use ofForensic Accounting Techniques inCurbing Creative Accounting),InternationalJournal of Economics;commerce and Management; Vol.( 3), Issue( 1),ISSN 2348-0386.
11.Catalina ,Ciocan Claudia, (CreativeAccounting And Fraud: AComparativeApproach), Management Strategies Journal,Vol.(42),No.(4)(2018): 157-163
12.Dharmani, P., Das, S., & Prashar,S. (2021). A bibliometric analysisof creative industries: Currenttrends and future directions.Journal of Business Research, 135,252-267e
13.Dutta, Pranjal Pratim, (Forensicaccounting in India: a new vibrantapproach to prevent white collarcrimes: an empirical study),(2018.)
14.Eko, E. N., Adebisi, AdesolaWasiu, and Moses, EseneyenJacob, (Evaluation of ForensicAccounting Techniques in FraudPrevention/Detection in theBanking Sector in Nigeria),International Journal of Financeand Accounting ,Vol.( 9),No.(3)(2020): 56-66.
15.Elzain, E. O. (2021). ShouldForensic Accounting Be Includedin Curricula of AccountingDepartments: The Case of SaudiArabia. International Journal ofHigher Education, 10(4), 258-267
16.Emmanuel ,Uniamikogbo,(Forensic audit and fraud detectionand prevention in the Nigerianbanking sector) , InternationalAccounting and Taxation ResearchGroup, Faculty of ManagementSciences University of Benin, Benin City, Nigeria, (2019.)
17.Flayyih, H. H. (2015). Enhancefinancial reporting of companies touse economic value added. Journalof Baghdad College of Economics,43, 379-408.e
18.Flayyih, H. H. (2015). Evaluate thefinancial performance of theeconomic entities Using theeconomic value added AnEmpirical Study in State Company.In Third Conference of the FederalFinancial Control Bureau (pp. 1-19).e
19.Flayyih, H. H. (2016). Factorsaffecting of the audit quality Andits role in enhancing dimensionsthat is quality. Journal of theAccountant, 23(46), 201-219.
20.Flayyih, H. H., (6102). The role ofopen budget in achieving of thetransparency and responsibility andReflect it on the administrative andfinancial corruption. journal ofEconomics And AdministrativeSciences, 22(90).e
21.Flayyih, H. H., Al-Mufraji, S. H.,& Alhelle, M. H. (2019). IslamicBanks: Basic Concepts andApplied Cases.
22.Ikechukwu, O. E, John, N. U.,Nkiruka, A.B., (Effect of ForensicInvestigation Techniques inDetecting Occupational Fraud InThe Public Sector: A Study OfMinistry Of Finance, AnambraState), International Journal ofInnovative Finance and EconomicsResearch,V0l.( 8), No.(1) (2020.)
23.M., Sousa, M., Silva, R., & Santos,T. (2021). Strategy and humanresources management in non-profit organizations: Its interactionwith open innovation. Journal ofOpen Innovation: Technology,Market, and Complexity, 7(1), 75e.
24.Menicucci, E. (2020). Earningsquality and earnings management. In Earnings quality (pp. 53-82). Palgrave Pivot, Cham.ee
25.Mohammed, A. M. (2021). TheRole Of Creative AccountingInحRomoting Entrepreneurial E-Commerce For Companies.Academy OF EntrepreneurshipJournal, 27(3), 1-10
26.Okenwa, O. C. (2021). EffectiveDeploy Of Digital ForensicTechniques And The SustenanceOf Material Misstatement-FreeFinancial Reporting In Nigeria.Journal Of Academic Research InEconomics, 13(3.)
27.OYIER ,Omondi, Erick,( Theimpact of forensic accountingservices on fraud detection andprevention among CommercialBanks in Kenya), Diss. Universityof Nairobi,( 2013.)
28.OZCAN, Ahmet , (Analyzing theimpact of forensic accounting onthe detection of financialinformation manipulation) , ManasSosyal Araştırmalar Dergisi, Vol.(8),No.(2) (2019): 1744-1760
29.Salman, M. D., Mohammed, A. M.R. H., & Flayyih, H. H. (2021).Financial Safety Indicators underFinancial Crises and their Impacton Banking Finance: An AppliedStudy in Iraqi Banks Indicadoresde Seguridad Financiera BajoCrisis Financieras y su Impacto enla Financiación Bancaria: UnEstudio aplicado en los Banc. 39 (November), 1–10.e
30.Shah, Syed Zulfiqar Ali, and Butt,Safdar , (Creative accounting: Atool to help companies in a crisis ora practice to land them into Crises),International Conference onBusiness and Economics Research,Vol. (16)( 2011
31.Shibli, Abdulhussain Tofeeq, Salih,Jalil Ibrahim and Abdul Rahman,Nahla Ghalib, (Importance of theApproach to Forensic Accountingin Reducing Financial Fraud: AField Study on a Number ofAuditing Offices and JudicialCourts Operating in Basra),International Journal ofPsychosocial Rehabilitation, Vol.(24), Issue( 07)( 2020)
32.Smart, R., & Pacula, R. L. (2019).Early evidence of the impact ofcannabis legalization on cannabisuse, cannabis use disorder, and theuse of other substances: findingsfrom state policy evaluations. TheAmerican journal of drug andalcohol abuse, 45(6), 644-663ee.
33.Tapang, Arzizeh Tiesieh, andIhendinihu, John Uzoma , (Effectof forensic accounting services onunethical practices in Nigerianbanking industry) ,The Journal ofAccounting and Management,Vol.( 10) , No.(1) (2020)
2.Aksoy, T., & Uzay, S. (2021).Relationship between Fraudauditing and Forensic accounting.In Auditing Ecosystem andStrategic Accounting in the DigitalEra (pp. 127-146). Springer, Chamee.
3.Al-Abedi, T. K., Hasen, A. M.,Mohaisen, H. A., & Flayyih, H. H.(2022). The Impact of CorporateGovernance on AccountingConservatism in the FinancialStatements of Justice Shareholders:https://doi. org/10.37178/ca-c.23.1. 025. Central Asia and theCaucasus, 23(1), 272-281.e
4.Albizri, A., Appelbaum, D., &Rizzotto, N. (2019). Evaluation offinancial statements fraud detectionresearch: a multi-disciplinaryanalysis. International Journal ofDisclosure and Governance, 16(4),206-241e.
5.Ali Shah, Syed Zulfiqar, Safdar A.Butt, and Dr Bin Tariq ,(Use orabuse of creative accountingtechniques ),International Journalof Trade, Economics and Finance,Vol.( 2), No.(6) (2011)
6.Azadzadeh, Adeleh , (Analysis ofthe Necessity to Develop theForensic Accounting in Iran),Advances in EnvironmentalBiology, Vol.( 8), No.(19) (2014):170-173
7.Bassey, E. B., (Effect of forensicaccounting on the management offraud i microfinance institutions inCross River State), Journal ofEconomics and Finance, Vol. (9),No.(4) (2018)
8.Biswas, Mahua, Hiremath, KiranG, and Shalini R ,( ForensicAccounting in Indian Perspective) ,The 5th International Conferenceon Financial Criminology (ICFC)“Global Trends in FinancialCrimes in the New Economies ,(2013.)
9.Blazek, R. (2021). Creativeaccounting as a global tool for taxoptimization. In SHS Web ofConferences (Vol. 92). EDPSciencesee
10.Blessing. Ijeoma, ( 2015 ) ,(Empirical Analysis on the Use ofForensic Accounting Techniques inCurbing Creative Accounting),InternationalJournal of Economics;commerce and Management; Vol.( 3), Issue( 1),ISSN 2348-0386.
11.Catalina ,Ciocan Claudia, (CreativeAccounting And Fraud: AComparativeApproach), Management Strategies Journal,Vol.(42),No.(4)(2018): 157-163
12.Dharmani, P., Das, S., & Prashar,S. (2021). A bibliometric analysisof creative industries: Currenttrends and future directions.Journal of Business Research, 135,252-267e
13.Dutta, Pranjal Pratim, (Forensicaccounting in India: a new vibrantapproach to prevent white collarcrimes: an empirical study),(2018.)
14.Eko, E. N., Adebisi, AdesolaWasiu, and Moses, EseneyenJacob, (Evaluation of ForensicAccounting Techniques in FraudPrevention/Detection in theBanking Sector in Nigeria),International Journal of Financeand Accounting ,Vol.( 9),No.(3)(2020): 56-66.
15.Elzain, E. O. (2021). ShouldForensic Accounting Be Includedin Curricula of AccountingDepartments: The Case of SaudiArabia. International Journal ofHigher Education, 10(4), 258-267
16.Emmanuel ,Uniamikogbo,(Forensic audit and fraud detectionand prevention in the Nigerianbanking sector) , InternationalAccounting and Taxation ResearchGroup, Faculty of ManagementSciences University of Benin, Benin City, Nigeria, (2019.)
17.Flayyih, H. H. (2015). Enhancefinancial reporting of companies touse economic value added. Journalof Baghdad College of Economics,43, 379-408.e
18.Flayyih, H. H. (2015). Evaluate thefinancial performance of theeconomic entities Using theeconomic value added AnEmpirical Study in State Company.In Third Conference of the FederalFinancial Control Bureau (pp. 1-19).e
19.Flayyih, H. H. (2016). Factorsaffecting of the audit quality Andits role in enhancing dimensionsthat is quality. Journal of theAccountant, 23(46), 201-219.
20.Flayyih, H. H., (6102). The role ofopen budget in achieving of thetransparency and responsibility andReflect it on the administrative andfinancial corruption. journal ofEconomics And AdministrativeSciences, 22(90).e
21.Flayyih, H. H., Al-Mufraji, S. H.,& Alhelle, M. H. (2019). IslamicBanks: Basic Concepts andApplied Cases.
22.Ikechukwu, O. E, John, N. U.,Nkiruka, A.B., (Effect of ForensicInvestigation Techniques inDetecting Occupational Fraud InThe Public Sector: A Study OfMinistry Of Finance, AnambraState), International Journal ofInnovative Finance and EconomicsResearch,V0l.( 8), No.(1) (2020.)
23.M., Sousa, M., Silva, R., & Santos,T. (2021). Strategy and humanresources management in non-profit organizations: Its interactionwith open innovation. Journal ofOpen Innovation: Technology,Market, and Complexity, 7(1), 75e.
24.Menicucci, E. (2020). Earningsquality and earnings management. In Earnings quality (pp. 53-82). Palgrave Pivot, Cham.ee
25.Mohammed, A. M. (2021). TheRole Of Creative AccountingInحRomoting Entrepreneurial E-Commerce For Companies.Academy OF EntrepreneurshipJournal, 27(3), 1-10
26.Okenwa, O. C. (2021). EffectiveDeploy Of Digital ForensicTechniques And The SustenanceOf Material Misstatement-FreeFinancial Reporting In Nigeria.Journal Of Academic Research InEconomics, 13(3.)
27.OYIER ,Omondi, Erick,( Theimpact of forensic accountingservices on fraud detection andprevention among CommercialBanks in Kenya), Diss. Universityof Nairobi,( 2013.)
28.OZCAN, Ahmet , (Analyzing theimpact of forensic accounting onthe detection of financialinformation manipulation) , ManasSosyal Araştırmalar Dergisi, Vol.(8),No.(2) (2019): 1744-1760
29.Salman, M. D., Mohammed, A. M.R. H., & Flayyih, H. H. (2021).Financial Safety Indicators underFinancial Crises and their Impacton Banking Finance: An AppliedStudy in Iraqi Banks Indicadoresde Seguridad Financiera BajoCrisis Financieras y su Impacto enla Financiación Bancaria: UnEstudio aplicado en los Banc. 39 (November), 1–10.e
30.Shah, Syed Zulfiqar Ali, and Butt,Safdar , (Creative accounting: Atool to help companies in a crisis ora practice to land them into Crises),International Conference onBusiness and Economics Research,Vol. (16)( 2011
31.Shibli, Abdulhussain Tofeeq, Salih,Jalil Ibrahim and Abdul Rahman,Nahla Ghalib, (Importance of theApproach to Forensic Accountingin Reducing Financial Fraud: AField Study on a Number ofAuditing Offices and JudicialCourts Operating in Basra),International Journal ofPsychosocial Rehabilitation, Vol.(24), Issue( 07)( 2020)
32.Smart, R., & Pacula, R. L. (2019).Early evidence of the impact ofcannabis legalization on cannabisuse, cannabis use disorder, and theuse of other substances: findingsfrom state policy evaluations. TheAmerican journal of drug andalcohol abuse, 45(6), 644-663ee.
33.Tapang, Arzizeh Tiesieh, andIhendinihu, John Uzoma , (Effectof forensic accounting services onunethical practices in Nigerianbanking industry) ,The Journal ofAccounting and Management,Vol.( 10) , No.(1) (2020)
Authors
[1]
“The Role of Forensic Accounting in Reducing Earnings Management Practices”, Soc. sci. humanities j., vol. 6, no. 6, pp. 2774–2787, Jun. 2022, Accessed: Nov. 23, 2024. [Online]. Available: https://sshjournal.com/index.php/sshj/article/view/806
Copyright and license info is not available