Advances and issues in fraud research: a commentary
| Pages | 92-103 |
| DOI | https://doi.org/10.1108/JFC-01-2019-0012 |
| Date | 22 January 2020 |
| Published date | 22 January 2020 |
| Author | Peterson K. Ozili |
| Subject Matter | Financial risk/company failure,Accounting & Finance |
Advances and issues in fraud
research: a commentary
Peterson K. Ozili
Financial System Stability Directorate, Central Bank of Nigeria, Abuja, Nigeria
Abstract
Purpose –This purpose of this paper is to discuss some observations in the forensic accounting-based
fraud literature. Theauthors identify recent advances in the literature and highlight several importantissues
that are worth noting.
Design/methodology/approach –The authorsuse a commentaryanalysis.
Findings –The main message of thiscommentary paper is that fraud is complicated, and fraud complexity
can significantlyimpact the way researchers undertake forensic accounting-basedfraud research.
Practical implications –The practical implication is thatforensic accountants and forensic accounting
researchersshould incorporate into their practice the complexityof fraud regardless of whether they follow an
empirical,experimental, exploratory, analyticalor critical approach to fraud investigation.
Originality/value –In contrast to previous studies,this study identifies the most recent issues emerging
in fraud literature.
Keywords Fraud, Forensic accounting, Fraud detection, Financial reporting, Data mining,
Forensic accounting education, Banking
Paper type Viewpoint
1. Introduction
According to the Association of Chartered Fraud Examiners,fraud is defined as “the use of
one’s occupation for personalenrichment through the deliberate misuse or misapplication of
the organisation’s resources or assets”. Fraud has implications for investors, firm owners,
regulators, auditors and the public around the world (Albrecht et al.,2008). Accounting (or
financial) fraud has played a major role in the failure of many financial and non-financial
institutions around the world. The negative publicity from the media towards firms that
commit fraud continues to pose serious concernfor the integrity of the audit profession and
other supervisory bodiesacross several industries and puts pressure on fraud researchers to
suggest solutionsto deal with corporate and public fraud.
Fraud research can provide answers to some but not all questions regarding the
complexity of fraudulent behaviour by individuals and organisations. One approach to
understand the issues regarding fraudcomplexity is to begin from the simple issues to the
complex ones. Accordingly, we highlight some factors that led to the growth in the fraud
and forensic accounting literature, and also identify notable advances in the literature and
the challenges that fraud poses to academic research and corporate practice, and finally, we
suggest some directionfor future research.
We commend prior review articlesthat examine fraud and forensic accounting practices,
skills and certifications, and the need for forensic accounting education (Rezaee, 2002;
Crumbley, 2009;Rezaee and Burton, 1997;Sharma and Kumar Panigrahi, 2012;Ozili, 2015).
Building on these articles, this commentary article elaborates on some fraud themes in the
JEL classification –M41, M42
JFC
27,1
92
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 92-103
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-01-2019-0012
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