Investigation and prevention of fraud are considered hot issues in modern financial settings, especially at the Securities Commission of Jordan. This, in essence, was why this paper asked the following question: to what extent do forensic accounting techniques impact the detection of financial fraud within the Commission, with a special emphasis on two of its important directorates—the Inspection Directorate and the Legal Studies and Consultations Directorate? The study sampled 178 forensic accountants from both directorates and analyzed data using Structural Equation Modeling. This research offers findings of positive significant relationships between forensic accounting techniques applied to detect financial fraud within the Jordanian financial market. The results also indicate that forensic accounting techniques enhance the power of fraud detection when properly integrated with internal controls and legal processes. The present research contributes to the nascent but growing literature of forensic accounting with empirical evidence from Jordan, which evidence that the adoption of advanced forensic techniques within regulatory bodies is necessary to ensure the integrity of financial markets. Another very useful contribution of the study is that, practically, it provides recommendations for improving fraud detection strategies: better training, investments in technologies, and more collaboration between legal and inspection departments.

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Evaluation of Forensic Accounting Techniques in Detecting Financial Fraud: An Evidence from Emerging Economy

  • Anber Abraheem Shlash Mohammad,
  • Asokan Vasudevan,
  • Suleiman Ibrahim,
  • Rabindra Dev Prasad Prasad,
  • Khaleel Al-Daoud,
  • Hassan Ali Al-Ababneh,
  • Mohammad Motasem Alrfai,
  • Thulasi Manoharan,
  • Ali Mahmoud Abdallah Alrabei

摘要

Investigation and prevention of fraud are considered hot issues in modern financial settings, especially at the Securities Commission of Jordan. This, in essence, was why this paper asked the following question: to what extent do forensic accounting techniques impact the detection of financial fraud within the Commission, with a special emphasis on two of its important directorates—the Inspection Directorate and the Legal Studies and Consultations Directorate? The study sampled 178 forensic accountants from both directorates and analyzed data using Structural Equation Modeling. This research offers findings of positive significant relationships between forensic accounting techniques applied to detect financial fraud within the Jordanian financial market. The results also indicate that forensic accounting techniques enhance the power of fraud detection when properly integrated with internal controls and legal processes. The present research contributes to the nascent but growing literature of forensic accounting with empirical evidence from Jordan, which evidence that the adoption of advanced forensic techniques within regulatory bodies is necessary to ensure the integrity of financial markets. Another very useful contribution of the study is that, practically, it provides recommendations for improving fraud detection strategies: better training, investments in technologies, and more collaboration between legal and inspection departments.