Preface
If you ask about Enron, Conrad Black, Kimberly Rogers, WorldCom, you will definitely think about theft, bribery and fraud. The key word here is "fraud". Many researches are being done on this subject. What is a fraud, how is it detected, dealt with, and how is it protected? Such questions and answers are important terms in the field of forensic accounting as fraud plays an important role in the existence of accounting, ie forensic accounting. What is legal accounting, how it entered the system, how we deal with the problems we face, how much it contributed to specific problems of fraud, and even strengthened For those who want to understand what to do, the general accounting system (Economist Intelligence Unit, 2007).
Research is being done on fraud and various definitions are given. All of these definitions are consistent with each other. Other researchers have been made to emphasize the task of internal control in order to minimize the possibility of theft or misuse. However, little research has been done on the dissemination and appropriate implementation of forensic accounting.
Fraud is manipulating, stealing, and destroying many companies and industries. In order to face such harmful trends, a fraud exam was created. Great efforts are being made to prevent detecting, investigating, and encountering similar behaviors. These precautions focus on new concepts and practices known as "forensic accounting (FA)", which is a general notice against fraud and similar unethical behavior. Regardless of how much fraud it increases, there must always be a fraud prevention scheme to prevent it. The main reason FA is present is to provide balance and protection availability.
Nevertheless, the laws, supervision and regulatory systems of financially corrupt countries make important opportunities and tools for washing and protecting criminal revenues, and criminals using these systems can conduct effective investigations Or punishment. Transactions involving national entities and accounts are used for illegal purposes because there is no country's commitment to bank confidentiality and certain key oversight and enforcement mechanisms intended to prevent and detect money laundering The possibility increases.
Since one of the most powerful tools at the moment is forensic accounting, it is necessary to consider its possible implementation in an opaque business of the business and establish implementation of this procedure in various fields and various levels It is useful to investigate basic basic methods. Therefore, in order to achieve these goals, it is necessary to investigate the next research topic "What are the conditions of the possibility of implementing FAs in countries characterized by the opaque financial sector?" Specifically, this research has two objectives.
1. Identify the best way to emphasize the importance of using forensic accounting activities to clear the future course of business activities. By learning from past mistakes such as Enron and WorldCom and using cases of financial fraud similar to international ones,
2. When used as an expert, identify ways to diffuse and implement forensic accounting as an important tool that greatly contributes to the fight against fraud.
There is also a gap that forensic accounting is not known in many countries. FA is not very popular in the world, but it is only known in the United States and some developed countries. This survey, in particular, contributes to finding the best way to implement FA with existing gaps. This is mainly because it is very difficult to implement forensic accounting, especially because it is not spread all over the world. The objective is to show how forensic accounting is implemented in countries that reach an answer to a research question and are characterized by an opaque financial sector. The overall objective is to achieve this goal.
literature review
A variety of studies are related to the definition of fraud, including types of fraud, such as Gilbert (1997, 124). What is defined as "fraud" is that "to obtain secretive distortion or value of the truth of false expression, or to deprive other rights, an unfair benefit than others Obviously it is a serious fact to get.
Farrell & Healy (2000) clarifies that fraud is increasing all over the world, and as companies use complicated ways to commit criminal acts or commit criminal acts, companies are costly every year It is. The consequences of fraud may vary depending on public moral corruption, weak organizational beliefs, loss of market valuation, trust of stakeholders, and so on.
Other investigations, where various definitions are attributed to fraud, emphasize the importance of internal controls to limit ongoing fraud. External audits are also being conducted to ensure that the anti-fraud mechanisms enacted within the company are appropriate within the scope of application, effective for application and compliance. However, the complexity of the human brain and the dynamic method of its reasoning make it impossible to realize the ideal of today's true corporate governance, from the form of cheating that has been known until now, greatly reducing the current fraud We are diversifying it.
It is worth noting that the Auditing Standards Council (ASB) in 2002 issued Auditing Standard 99 (SAS 99) which introduced the "fraud triangle" in order to prevent fraud. Fraud Triangle states that management or other employees are incentive or under financial pressure, conditions that provide opportunities for managers and employees to commit misconduct, or the ethical values that cause them In the presence of characteristics, management staff and employees can streamline misconduct (Maranjan, 2010).
Fraud is detected and investigated to prevent possible damage caused by activities. What advice will be given to companies that legal accountants have been cheating? Professionals can cite four things you can do to reduce the occurrence of fraud, including fraud prevention, fraud detection, fraud investigation, follow-up legal action or resolution. Any company's fraud prevention program should focus on all four.
Over the past two decades there has been a significant change in the business environment, including globalization, advances in technology, high-level financial scandals, methods for improving public credit, investor confidence in financial reporting, and more. Emerging regulations, society, economics, ethics, and legal challenges facing the business world contribute to increased demand for FAs that encourage accounting.
In the survey conducted in October 2003, the demand for interest in FA continues to increase, and it is guaranteed that accounting programs providing FA education are increasing. Business community and accounting jobs were reported financial and accounting scandal. However, there are few studies to study the proper spreading and implementation of forensic accounting in an opaque business practice country.
Research framework
Many factors in the national business mechanism are responsible for misconduct in the financial sector. For example, fraud has become easier as it is considered to be a weak tax haven for bank confidentiality control, money washing activities, corporate corporate governance. All of these are the result of national corruption that causes the need to introduce FA. However, before the introduction of the opaque financial nature of the country and the introduction of FA, major changes must be made to prepare the dissemination and implementation of FA at both the macro level and the micro level mentioned above.
As mentioned earlier, the causes of corruption that are present in most corruption countries are the lack of malfeasance anti-corruption mechanism, the lack of awareness of corruption, its causes, the result, the weak legal framework, and the absence appropriate legal In addition to this, the implementation mechanism, the confession regime, the inefficiency of regulatory agencies, the low-level treaties of public sector employees, the political influence on justice, the lack of citizen education, the foreign interference to internal affairs, the selective or Generous enforcement, inefficient media. In other words, factors that contribute to fraudulent business practices can be classified under four concepts. Culture, education, administration, administration, law, etc. are included. The four categories, such as the lack of awareness of FA (culture and education) and the advantages it can bring, corruption of control, inefficiency of supervisory committee, lack of law to implement FA (government and law) I worked on finishing cheating.
For example, the lack of internal alerter protection law prevented citizens from reporting political corruption in Congress and other departments of the government. In the private sector and the public sector, access to the information law is inadequate, and the conflict of interest law and other disclosure and transparency mechanisms are a major obstacle to completeness.
Results and discussion
In the literature review, we explain the different meanings of fraud, forensic accounting, unclear business country's characteristics, and how FA can help the way criminals can keep cheaters by limiting fraud explained. In addition FA acts as a free trading country for countries with opaque business practices such as Luxembourg, Austria and Lebanon and ends business corruption that is taking place in government and other private sector and different departments of the private sector You can be a public institution. However, in order to obtain the best result of the FA, a proper diffusion and implementation process has to be done. The process employs universities and other academic institutions with the ability to teach forensic accountants and FAs, knowing the FA's views and consciousness of the people in the state, the government itself, the cultural point of view, FA Companies that have to request from employees things.
Countries with opaque business practices tend to share similar traits that justify the spread of cheating. As mentioned earlier, factors contributing to misbehavior in the financial sector can be divided into four categories. (Macro level), management, education (micro level).
In this way, the importance of adopting forensic accounting is emphasized, but the introduction process is not a process in the field. On the contrary, in order to recognize the importance of FA, it takes time and effort to move cultural awareness. In other words, with the government as the main facilitator, the education system needs to participate in enhancing consciousness to FA and changing cultural psychology. Management also needs to educate employees with FA and adopt it as part of that system.
A. Forensic Accounting in Culture
Koh et al. (2009) conducted a survey to examine Malaysian public acceptance levels for forensic accounting. In this survey, the problem became apparent from the fact that FA service is still new to most companies and is also open to the public in Malaysia. This may cause confusion among the public, and some may not know the existence of the system. Therefore, the importance of the service is ignored (unaware).
There are two variables that affect public acceptance levels for practicing forensic accounting as the main tool in investigating corporate accounts for detecting fraud. Variables include general understanding of forensic accounting functions and perception of the implementation of forensic accounting in the survey. With public understanding and forensic accounting functions, Malaysian civilians decide whether to accept it as the main tool in investigating company accounts in case of fraud. The public's perception of the implementation of forensic accounting in the investigation of the company's financial statements also determines the acceptance level of forensic accounting in the country.
This survey shows the importance of the two basic elements available to make the basis for forensic accounting implementation. These elements are false prevention tools as forensic accounting recognition and knowledge, recognition of the implementation of forensic accounting. These two elements are regarded as key elements of the acceptance level of such tools.
In other words, if the cultures of financially corrupt, opaque business practices change, it will change people's practices, norms, values and therefore their behavior. Ultimately it creates awareness and knowledge about fraud and methods of fighting it and tools that can be used to deter it. In addition, this process also applies to forensic accounting.
B. Forensic Accounting in Education:
Demand for fraud and forensic accounting globally is rising, but much of the progress and adoption of accounting curricula at universities is taking place in developed countries. Adopting forensic accounting in the accounting curriculum of the university has a great potential to enhance students' abilities. It can provide skills and competencies and can be used as a true resource to mitigate fraud.
In many cases, it is clear that those who conduct fraud are not necessarily geniuses, but have creative minds. They are typical accountants who copy fraudulent acts from the past. Therefore, the emphasis on the importance of fraud prevention / detection education and training programs, and whether or not university business schools provide adequate programs to educate accounting and auditing specialists for fraud prevention / detection A question is raised.
Forensic accounting is not limited to university programs, but there are special certificates related to forensic accounting. This is a survey and diploma in the forensic accounting (DIFA) program. DIFA is designed to provide a wide range of knowledge and skills to conduct financial investigations. This range includes accounting, auditing, knowledge of income tax, knowledge of fraud, rules of law and evidence, clinical psychology and critical skepticism, understanding of psychology and motivation, strong communication skills.
The DIFA program focuses on the knowledge and skills to be taught and examined in the best way, such as face to face with the client directly, interview skills, testify as a professional witness in the court, and so on.
In conclusion, the foundation of forensic accounting is knowledge which is fundamental understanding of accounting, auditing, internal control, risk assessment, fraud detection, legal environment, the legal environment supports litigation, proofs like DIFA A diploma specialized in forensic accounting given by the educational institution giving the letter. These formal certificates will refine the knowledge and skills of the student 's forensic accounting.
C. Forensic Accounting in Management:
Poor corporate governance will guide certain individuals or groups of people with the same interests to act in order to conduct cheating within the enterprise. This will be strengthened by the fact that the top management will follow the company's policy and help companies improve their performance.
Even if companies apply an excellent internal control system, management remains a major factor affecting implementation. Since forensic accounting may be a workaround for problem solving, enterprises should focus on new approaches rather than following traditional approaches.
Loebbecke and Willingham (1998) conclude that the possibility of serious financial misstatement by fraud is a function of three factors. The reasons for this include the reasons why a person with the authority of the company adheres to the management fraud to some extent, the extent to allow the condition to commit a control fraud, the extent to which the authorized person has to comply with ethical values Abuse . These three factors indicate that management may merely conduct misconduct because shareholders are unaware of the measures to be taken to prevent financial crime. In order to take action in the event of a financial fraud, we insist that a series of guidelines are needed to be prepared by the public and management.
The main problem or problem is that the role and responsibility of the auditor is constantly misunderstood because the auditor expects to detect false or misbehavior of the financial assets in the financial statements. This has long recognized the responsibilities of the auditor. Therefore, this perception should be regenerated and corrected. An auditor with a forensic accounting background is specifically designated as a forensic accountant to investigate the company's financial statements. These people are responsible for detecting financial misstatements. If appropriate public education is given to the public, this awareness to the auditor may be strengthened.
D. Forensic Accounting in Government and Legislation:
Forensic accounting has played an important role in detecting, investigating and improving expression of all incidents in court in judicial proceedings. Companies who wish to use information on misconduct in court law serve as forensic accountants because they can work on the investigation in a way that is totally acceptable in court.
Forensic accounting is a specialization in accounting that describes contracts arising from actual or anticipated disputes or litigation. "Forensics" means "to be suitable for use in court" and is a standard and a potential outcome that forensic accountants have to work generally. Forensic accountants often present evidence of experts in temporary trials.
Forensic accounting should be part of the criminal investigation of evidence related to the financial implications that the report of the forensic accountant should be regarded as evidence, evidence to be filed in court.
Countries that established forensic accounting in the legal system have law enforcement agencies and forensic accountants who are in the position of local lawyers. Like other types of evidence, procurement acquires a search warrant to identify financial information and interviews or holds knowledgeable people about the situation of the problem.
Forensic accountants can also provide litigation support. Lawyers review the existing documents and testimonials and explain the importance of finance by using the service of a forensic accountant. The forensic accountant can tell the lawyer about additional information necessary to ask the witness and to prove the question. The forensic accountant may review the damaged report, support the report if it is compiled correctly, and support the case.
Government agencies such as FBI, the Internal Revenue Service, alcohol, tobacco, firearms department have a forensic accountant who investigates everything from money laundering and identity theft fraud to profits and arson for tax evasion. The law firm uses a forensic accountant so that you will not inform your divorce about your exes. Hidden assets.
Conclusion
In this article I will explain the importance of having a survey system that restricts frequent financial fraud and business opacity occurring globally. In this regard, forensic accounting is presented as a tool to prevent general fraud, money laundering and theft. However, in order to obtain better results, since they play a major role in management accounting, education, and government / law, focusing on raising public (cultural) awareness, spreading forensic accounting appropriately Have to.
For example, the public may not know the significance of forensic accounting, and may lack knowledge knowledge to introduce it into research items. Therefore, it is necessary to incorporate forensic accounting in the culture of financially corrupt country, it is necessary to recognize forensic accounting as a fraud prevention tool and to implement the means to investigate financial statements. This procedure can be treated as a major facilitator by government or law.
In addition, the importance of adopting forensic accounting at university is emphasized that the accounting curriculum, especially the demand for it gradually increases. Such adoption holds great potential to enhance students' abilities. It can provide skills and competencies and can be used as a true resource to mitigate fraud. New graduates can also obtain diplomas with the Investigative & Forensic Accounting (DIFA) program that provides broad knowledge and skills to conduct financial investigations.
Management needs to develop adequate corporate governance and internal control systems, among which highly authorized persons are responsible for fraudulent and unethical fraud and are responsible.
In short, incorporating forensic accounting into academic curriculum is a long process somehow. The first step that needs to be established is to create awareness of ethical issues. As discussed, cultural change towards the importance of FA has to be maintained and the government, law, education system and management must share their roles in the proliferation and implementation of forensic accounting .
References
Farrell, BR, & Healy, P. (2000). White color crime: evaluation of perpetrator 's profile and its responsibility for prevention and discovery.
See Gilbert (1997), Law Dictionary, Harcourt Brace Legal and Professional Publications.
Kohl AN, Arokiasamy L., Ah Suat CL (2009). Forensic Accounting: Public acceptance for detection of fraud
Loebbecke, JK, Eining, MM Willingham, JJ (1989). Judge's important irregular experience.
Maranjan, S. (2010). Surprising plaque kills retail profit.
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