Contribution of Forensic Accounting to Corporate Governance: An Exploratory Study of an Asian Country

International Business Management, 10 (4), 2016

14 Pages Posted: 20 Oct 2015

Date Written: August 20, 2015

Abstract

The recent accounting scandals (viz., Enron, WorldCom, Madoff, Satyam, etc.) have induced a crisis of confidence in financial reporting practice and effectiveness of corporate governance (CG) mechanisms. Indeed, Forensic accounting (FA) integrates accounting, auditing and investigative skills to conduct investigations in variety of fraud cases. Thus, an increasing number of researchers are finding that ‘poor’ CG is a leading factor in dismal performance, manipulated financial reports, and unhappy stakeholders. Some leading corporations and regulatory bodies, however, are trying their best efforts to analyze and correct the existing loopholes in the reporting system. In the 21st century, the Forensic Chartered Accountants (FCAs) are in great demand and “FA is listed among the top-20 careers of the future.” During 2011-12, a questionnaire-based survey was conducted in the National Capital Region of India using a sample size of 120 practicing chartered accountants, accounting academics, and potential users of FA services. In fact, this study is a ‘preliminary’ investigation of the necessary skills, education and training requirements for the professional community. The results of this ‘exploratory’ study, with few minor differences, indicate that potential practitioners, academics and users agree that “critical thinking, written & oral communication, legal knowledge, auditing skills, deductive analysis, investigative flexibility, analytical proficiency and unstructured problem-solving are the most important skills required for the FCAs.” Moreover, we found that all of the skills investigated in this study are ‘potentially’ important for the FCAs, which the educators at the Universities should use as an overall guide while designing their FA curriculum.”

Keywords: Forensic accounting, forensic chartered accountants, corporate governance, Asian country, financial reporting, regulatory bodies

Suggested Citation

Bhasin, Madan Lal, Contribution of Forensic Accounting to Corporate Governance: An Exploratory Study of an Asian Country (August 20, 2015). International Business Management, 10 (4), 2016, Available at SSRN: https://ssrn.com/abstract=2676488 or http://dx.doi.org/10.2139/ssrn.2676488

Madan Lal Bhasin (Contact Author)

Universiti Utara Malaysia ( email )

Sintok, Kedah Darul Aman 06010
Malaysia
01114567247 (Phone)

HOME PAGE: http://www.uum.edu.my

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