Forensic accounting tools for fraud deterrence: a qualitative approach
| DOI | https://doi.org/10.1108/JFC-03-2022-0068 |
| Published date | 16 May 2022 |
| Date | 16 May 2022 |
| Pages | 840-854 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Alberto Clavería Navarrete,Amalia Carrasco Gallego |
Forensic accounting tools for
fraud deterrence: a
qualitative approach
Alberto Clavería Navarrete
Faculty of Economics and Business Sciences, University of Seville, Sevilla, Spain, and
Amalia Carrasco Gallego
Department of Accounting and Financial Economic,
Faculty of Economics and Business Sciences, University of Seville, Sevilla, Spain
Abstract
Purpose –The purpose of this paper is to understand if forensic accounting techniques and tools could
contribute to the deterrenceof fraud in financial statements, considering the expertise of forensicaccountant
on ex post activitiesand that the traditional mechanisms to preventthis type of fraud have not been sufficient
to stop the impacton companies, investors, auditors, employeesand on society in general.
Design/methodology/approach –This research was carried out using a qualitative exploratorystudy
with a phenomenological approach conducted through in-depth interviews with professional experts in the
forensicfield.
Findings –The findings confirm that the use of forensicaccounting techniques and tools could contribute
to the preventionof fraud in financial reporting not only when the risk of fraud has beenmaterialized. Similar
studies, about fraud prevention addressingthe situation under a qualitative approach from the perspectives
of its protagonists, have not been observed in the bibliographical review, so this research contributes to
expandingthe scientific research, the study and practice of forensic accounting.
Originality/value –From a business management perspective, this study contributes a paradigm shift
from the traditional ex post forensic auditing activity toward an ex ante activity to improve management
control systems within organizations anywhere in the world. Because this study is guided to prevent
fraudulent financial statements, other fraud categories such as misappropriation or corruption could be
addressedin other studies and various countries.
Keywords Fraudulent financial reporting, Forensic accounting, Fraud deterrence,
Forensic data analytics, White-collar crimes, Financial crimes
Paper type Research paper
Introduction
In recent years, fraudulent financial reportshave significantly affected market participants,
including investors,creditors, pensioners and employees (Zainudin and Hashim, 2016).
Although financial statement frauds are the least common, with 10% of cases, they are
the most expensive (ACFE, 2020) and despitereceiving less attention, they can have a grave
and enormous impact on the world economy (Abdullah and Said, 2019). The potential
deterioration associatedwith financial report fraud could therefore affect the reputation and/
or brand of the entity (e.g. Enron), its financialsituation (e.g. Adelphia) or its ability to retain
JEL classification –M41, M42, M48
Statements and declarations: The authors did not receive support from any organization for the
submitted work. The authors have no relevant financial or nonfinancial interests to disclose.
JFC
30,3
840
Journalof Financial Crime
Vol.30 No. 3, 2023
pp. 840-854
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2022-0068
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