Proceedings of the 5th International Conference on Future of Business, Management and Economics
Year: 2023
DOI:
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New Variables and Measurements of Forensic Accounting: Implications on Financial Reporting and Auditing
Hashem Alshurafat
ABSTRACT:
Forensic accounting is a specialized field that investigates financial fraud and other white-collar crimes and provides evidence in legal proceedings. Forensic accounting literature has been criticized for lacking applied research that examines the actual role of forensic accountants in practice. One reason for this gap is the challenge of measuring the variables involved in forensic accounting cases. The purpose of this research is to introduce new variables and measurements of forensic accounting to bridge the gap of applied research in forensic accounting area. This research proposes appropriate measures for the variables involved in forensic accounting, identifying the key variables that are most important in determining the impact of forensic accounting services and techniques. The proposed variables in this paper are (1) Forensic accounting service index; (2) Audit quality in term of forensic accounting service; (3) Audit committee characteristics in term of forensic accounting service; (4) Litigation risk and (5) Fraud risk. This research has significant implications for future applied research in the field and provides a roadmap for further research. By providing a foundation for applied research, this research will contribute to the development of a stronger and more evidence-based forensic accounting profession.
keywords: Forensic accounting, variable measurements, conceptual-review, financial reporting and auditing