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Forensic accounting theory

Author

Listed:
  • 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
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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

    as
    1. 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.
    2. 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.
    3. 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.
    4. Ozili, Peterson K, 2015. "Forensic Accounting and Fraud: A Review of Literature and Policy Implications," MPRA Paper 77236, University Library of Munich, Germany.
    5. Erik Lie, 2005. "On the Timing of CEO Stock Option Awards," Management Science, INFORMS, vol. 51(5), pages 802-812, May.
    6. Erickson, M & Mayhew, BW & Felix, WL, 2000. "Why do audits fail? Evidence from Lincoln Savings and Loan," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 38(1), pages 165-194.
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    Keywords

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    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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