The Impact of Company and Board Characteristics on the Adoption of Forensic Accounting Services

Shroug Fahd Almousa (), Nafisah Yami () and Suhaib B. Bani Kinana
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Shroug Fahd Almousa: King Saud University
Nafisah Yami: King Saud University
Suhaib B. Bani Kinana: Hashemite University

A chapter in Innovative Law and Business in the Digital Era, 2025, pp 151-162 from Springer

Abstract: Abstract This investigation examines how the attributes of companies and their boards influence the choice to implement forensic accounting services, specifically targeting firms in Jordan and Saudi Arabia. It emphasizes the influence of economic and governance factors on companies’ decisions regarding the employment of forensic accountants. The findings indicate that elements like size, leverage, and corporate governance significantly influence the likelihood of companies utilizing forensic accounting services. Companies with substantial financial resources are more inclined to invest in these services, whereas smaller firms often exercise caution due to the related expenses. The study highlights the important influence of board characteristics, including board independence and the inclusion of non-executive directors, on promoting the use of forensic accounting services to enhance transparency and accountability. The study also pinpoints how local regulations and governance structures shape the adoption of these services. The findings indicate that enhancing corporate governance practices and establishing a conducive regulatory framework are crucial for increasing the efficacy of forensic accounting in identifying fraud and promoting financial transparency, especially in developing nations such as Jordan and Saudi Arabia..

Keywords: Forensic accounting; Financial fraud prevention; Audit quality; Fraud detection; Corporate governance; Governance mechanisms (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-5773-5_15

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DOI: 10.1007/978-981-96-5773-5_15

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