Impact of forensic accounting on fraud detection and prevention: a case of firms in Pakistan

Iram Naz and Saleh Nawaz Khan

Journal of Financial Crime, 2024, vol. 32, issue 1, 192-206

Abstract: Purpose - This study aims to assess the effectiveness of forensic accounting techniques to prevent and detect fraudulent activities in firms in Pakistan. Design/methodology/approach - A descriptive research approach has been adopted in this study. Primary data has been collected through structured questionnaires distributed to professionals from investigating firms, professional bodies and field researchers. The independent variables that were analyzed included fraud investigation, litigation support and dispute resolution, whereas the dependent variables were fraud detection and prevention. The Statistical Package for Social Sciences has been used for data analysis to derive objective results. Findings - This research reveals that forensic accounting techniques such as fraud investigation, litigation support and dispute resolution have a positive impact on fraud detection and prevention in Pakistani firms. Practical implications - Firms should train staff on forensic accounting techniques, implement fraud risk management and anti-corruption policies, conduct regular financial statement audits and develop a whistleblower protection program to encourage employees to report fraudulent activities. The government should develop regulations and guidelines to promote the use of forensic accounting in firms. Originality/value - This study is covering the gap in literature on financial fraud and forensic accounting practices concerning emerging economies such as Pakistan. This study can serve as a valuable resource for firms and policymakers to strengthen their fraud prevention efforts and build a more robust culture of financial integrity.

Keywords: Financial fraud (K42); Forensic accounting (M4); Fraud detection; Fraud prevention; Forensic accounting (K41) in firms (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-01-2024-0010

DOI: 10.1108/JFC-01-2024-0010

Access Statistics for this article

Journal of Financial Crime is currently edited by Dr Paul Gilmour

More articles in Journal of Financial Crime from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().