Volume 29, Issue 5, 2020
DOI: 10.24205/03276716.2020.1142
The Causes of Accounting Frauds and an Alternative Approach to Prevention of Frauds and Corruption in Banks Forensic Accounting
Abstract
The leverages enabled by thriving IT technologies have set the stage for increasingly growing and more complex fraud and corrupt practices. Occurring in different forms across businesses, accounting frauds lead to major economic losses. Preventability of these losses underpinned the extended scope of the accounting and the birth of the “forensic accountingâ€. And the insufficiency of the current audit system has turned forensic accounting practices into a requirement. The increased power and authority of the banks, which is one of the industries fraught with the fraud and corruption, has been misappropriated by the individuals, and therefore, they have become one of the major targets of attempts of fraud and corruption. This study aims at evaluating the attitudes credit officers of business credit service of the banks against the financial manipulations, identifying if such attitudes vary by the demographic groups, revealing the financial statements accounts which prone to manipulations and those accounts which positively contribute in the creditworthiness of the businesses, and explaining the importance of the concept of forensic accounting in prevention of the manipulation of financial information.
Keywords
Accounting frauds, forensic accounting, froud audit.