IDEAS home Printed from https://ideas.repec.org/a/alu/journl/v2y2020i22p53-69.html
   My bibliography  Save this article

Instrumental Context Of A Forensic Accounting Investigation: A Systematic Review Of The Current Literature

Author

Listed:
  • Adrian GROŞANU
  • Camelia-Melania MUREŞAN
  • Cristina BOŢA-AVRAM
  • Paula Ramona RĂCHIŞAN

Abstract

The aim of the manuscript is to provide a review of the studies on the professional methodology of a forensic accounting investigation. The review presents various types of analyses that could prove to be effective in detecting and proving fraud such as industry analysis, financial analysis, nonfinancial data analysis, and internal control. A considerable part of this review is dedicated to the exhibit of several statistical and data mining techniques, as nowadays a forensic accounting investigation implies the work with and analysis of huge amounts of data. As this research is a descriptive one, the methodology used for elaborating this paper comprised an extensive literature review on the given subject, including a wide range of specialized works such as articles, researches, surveys, statistics, books, websites etc., and due to research's nature, it made use of the content analysis method. There is a wide-range of technical instruments available for a forensic accounting investigation that goes from financial analyses to business intelligence. It is the forensic accountant prerogative to choose the appropriate methods and tools according to the nature of the investigation, its complexity and its purpose, as some of them proved to be more useful than others. There has to be used several methods which can validate each other's results and together lead to a final conclusion on the occurrence or dimension of fraud.

Suggested Citation

  • Adrian GROŞANU & Camelia-Melania MUREŞAN & Cristina BOŢA-AVRAM & Paula Ramona RĂCHIŞAN, 2020. "Instrumental Context Of A Forensic Accounting Investigation: A Systematic Review Of The Current Literature," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(22), pages 53-69.
    • Handle: RePEc:alu:journl:v:2:y:2020:i:22:p:53-69
    as

    Download full text from publisher

    File URL: http://oeconomica.uab.ro/upload/lucrari/2220202/06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shirley Wong & Sitalakshmi Venkatraman, 2015. "Financial Accounting Fraud Detection Using Business Intelligence," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(11), pages 1187-1207, November.
    2. Shirley Wong & Sitalakshmi Venkatraman, 2015. "Financial Accounting Fraud Detection Using Business Intelligence," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(11), pages 1187-1207.
    3. Oana Raluca Ivan, 2009. "European Standardization of Audit," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(4), pages 5-14.
    4. Joseph F. Brazel & Keith L. Jones & Mark F. Zimbelman, 2009. "Using Nonfinancial Measures to Assess Fraud Risk," Journal of Accounting Research, Wiley Blackwell, vol. 47(5), pages 1135-1166, December.
    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. Williams Kwasi Peprah, 2018. "Predictive Relationships among the Elements of the Fraud Diamond Theory: The Perspective of Accountants," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 141-148, July.
    2. Wei, Lang & Zhang, Yiling, 2023. "Nonfinancial indicators in identifying stock price crash risk," Finance Research Letters, Elsevier, vol. 52(C).
    3. Muhammad Farhan Malik & Yuan George Shan & Jamie Yixing Tong, 2022. "Do auditors price litigious tone?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1715-1760, April.
    4. Mingzi Song & Naoto Oshiro & Akinobu Shuto, 2016. "Predicting Accounting Fraud: Evidence from Japan," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 6, pages 17-63, December.
    5. Cline, Brandon N. & Walkling, Ralph A. & Yore, Adam S., 2018. "The consequences of managerial indiscretions: Sex, lies, and firm value," Journal of Financial Economics, Elsevier, vol. 127(2), pages 389-415.
    6. Chen, Yuh-Jen & Wu, Chun-Han & Chen, Yuh-Min & Li, Hsin-Ying & Chen, Huei-Kuen, 2017. "Enhancement of fraud detection for narratives in annual reports," International Journal of Accounting Information Systems, Elsevier, vol. 26(C), pages 32-45.
    7. Herron, Eddward T. & Cornell, Robert M., 2021. "Creativity amidst standardization: Is creativity related to auditors’ recognition of and responses to fraud risk cues?," Journal of Business Research, Elsevier, vol. 132(C), pages 314-326.
    8. Omondi-Ochieng, Peter, 2019. "Financial performance trends of United States Hockey Inc: a resource-dependency approach," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 24(48), pages 327-344.
    9. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, vol. 11(6), pages 1-31, March.
    10. Hoberg, Gerard & Lewis, Craig, 2017. "Do fraudulent firms produce abnormal disclosure?," Journal of Corporate Finance, Elsevier, vol. 43(C), pages 58-85.
    11. Dan Amiram & Zahn Bozanic & James D. Cox & Quentin Dupont & Jonathan M. Karpoff & Richard Sloan, 2018. "Financial reporting fraud and other forms of misconduct: a multidisciplinary review of the literature," Review of Accounting Studies, Springer, vol. 23(2), pages 732-783, June.
    12. Raghunandan, Aneesh, 2021. "Financial misconduct and employee mistreatment: evidence from wage theft," LSE Research Online Documents on Economics 109863, London School of Economics and Political Science, LSE Library.
    13. Joseph F. Brazel & Lorenzo Lucianetti & Tammie J. Schaefer, 2021. "Reporting Concerns About Earnings Quality: An Examination of Corporate Managers," Journal of Business Ethics, Springer, vol. 171(3), pages 435-457, July.
    14. Nerissa C. Brown & Richard M. Crowley & W. Brooke Elliott, 2020. "What Are You Saying? Using topic to Detect Financial Misreporting," Journal of Accounting Research, Wiley Blackwell, vol. 58(1), pages 237-291, March.
    15. Anna Schultzová & Jaroslava Šepeľová & Marcela Rabatinová & Juraj Válek, 2022. "Identifikácia potenciálne nezodpovedného správania sa spoločností voči správcovi dane [Identification of Potentially Irresponsible Behaviour of Companies Towards the Tax Administrator]," Politická ekonomie, Prague University of Economics and Business, vol. 2022(3), pages 341-360.
    16. Abdullah Albizri & Deniz Appelbaum & Nicholas Rizzotto, 2019. "Evaluation of financial statements fraud detection research: a multi-disciplinary analysis," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 16(4), pages 206-241, December.
    17. Yang Bao & Bin Ke & Bin Li & Y. Julia Yu & Jie Zhang, 2020. "Detecting Accounting Fraud in Publicly Traded U.S. Firms Using a Machine Learning Approach," Journal of Accounting Research, Wiley Blackwell, vol. 58(1), pages 199-235, March.
    18. Wright, William F., 2016. "Client business models, process business risks and the risk of material misstatement of revenue," Accounting, Organizations and Society, Elsevier, vol. 48(C), pages 43-55.
    19. Aneesh Raghunandan, 2021. "Financial misconduct and employee mistreatment: Evidence from wage theft," Review of Accounting Studies, Springer, vol. 26(3), pages 867-905, September.
    20. Iselin, Michael & Johnson, Bret & Ott, Jacob & Raleigh, Jacob, 2022. "Protecting wall street or main street: SEC monitoring and enforcement of retail-owned firms," LSE Research Online Documents on Economics 117743, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    forensic accounting; systematic review; financial and nonfinancial analyses; statistics models and techniques;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    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:alu:journl:v:2:y:2020:i:22:p:53-69. 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: Dan-Constantin Danuletiu (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.