Research Topic blockchain -accountants
To develop forensic accounting an education program that can fit in most Saudi universities.
Introduction:
Forensic accounting is an emerging area of accounting that became an essential part of every organization and institution.
In the recent years the result of numerous accounting researches, forensic accounting became the newest topic to affect the university business curriculum. In addition, the accounting practices used to identifying fraudulent activities, these financial frauds have also considerably changed. For example, the "forensic audits" have potential effect on practice is seeming in the report entitled Serving “Global Capital Markets and the Global Economy” (Global Public Policy Symposium, 2006). The Global Report is a defense of the accounting profession, but it also represents a potential strategic shift for practitioners to bring forensic practices into the consultative track of available accounting services. Both in academic circles and within accounting practice, forensic accounting is being widely discussed, but a clear definition has not yet been articulated.
Forensic Accounting may be defined as;
"The application of special skills in accounting, auditing, finance, quantitative methods, certain areas of the law and research, and investigative skills to collect, analyze, and evaluate evidential matter and to interpret and communicate findings in a consulting or expert witness capacity" (Crumbley, Heitger, & Smith, 2007).
Fraud has been defined as a series of activities performed to obtain money, property or services, to escape payment or services or to secure personal or business compensations (Ratlift, 1996). These demonstrations are not needy upon the use of threat of violence or of physical power Moreover, it is contended that extortion hazard increments especially when the preventive and investigator instruments are not effective, frail, either missing or non-existent (Adefila, Kasum, & Olaniyi, 2005). As such, all government organizations are expected to give importance to the justification of fraud using the most effective fraud avoidance and detection instruments (Kasum, 2012)
Mounce and Frazer (2002) have argued that forensic accounting is one emerging business and mechanism existing to accounting professionals for actual prevention and recognition of fraud. It is for the most part concurred that forensic accounting, otherwise called forensic investigations, looks past the figures in financial records and arrangements specifically with the business reality within reach (Enyi, 2008). Comprehensively, forensic accounting is the claim to fame that involves the incorporation of accounting, auditing and investigative abilities. It gives accounting analysis that is appropriate to the court, which will shape the reason for discussion, debate and eventually assists in dispute resolution. It is further contended that this part of accounting includes both prosecution support and investigative accounting. (Chary, 2005; Owojori & Asaolu, 2009).
The educational sector is the one and only sector that should assist as the beginning point in identifying solution to any problem of this nature. In a recent study (Efiong, 2012); it has been claimed that education has an influential effect on the character, mind and physical ability of individuals through the spreading of knowledge. Educational institutions should therefore be responsible for providing the opportunity through which this knowledge can be distributed, since they provide the standard for measurement of the possible distribution of new ideas and definitely its future development.
Here, it is claimed that the development of new curricula needs to be strengthened with an understanding of the fundamental differences that may exist in “fraud versus forensic” concepts. The course developers need to identify the foundation for introducing “fraud/forensics” into the accounting curriculum. It is also consider that auditing, traditional fraud examinations, or forensics provide the underlying foundation for accounting curriculum development. The Forensic Accounting Curriculum is the combination of these three approaches (auditing, traditional fraud examinations, or forensics). The knowledge and abilities of auditing, fraud examination, and forensic accounting are interrelated to each other.
Approaches of Forensic Accounting Curriculum
Forensics
Traditional Fraud
Auditing
Figure.1. Approaches of Forensic Accounting Curriculum
Auditing:
Auditing is a Foundation for Fraud/Forensic Curriculum. Auditing courses also integrate the study of fraud. In a previous research, Peterson & Reider (2001) found in their survey that 78.3% of the first auditing courses integrated discussions of fraud topics. For example, auditing discussions cover frauds from check kiting, asset misappropriations, net worth analysis, and financial statement misrepresentation. These topics are similar to those included in fraud examination courses, but with several other audit topics to cover, such fraud topics cannot be as fully developed within an auditing course.
Fraud Examination:
If auditing courses are unable to develop a fraud/forensic curriculum, course developers and specialized trainers are considering using a fraud examination or a forensic accounting approach. Fraud examination courses also cover topics such as internal control analysis, fraudulent payment schemes, payroll fraud, cash theft, and flowcharting (for internal control). Although there is similar content found in auditing and fraud examination courses, the fraud content and topic depth is more expansive in a fraud examination course as compare to the auditing.
Forensics:
These three Approaches are interlinked and most emerging approaches that are using in the tertiary education throughout the world, but in Saudi Arabia a less considerations on the Forensic accounting as a part of curriculum. There is highly demand for a course related to identify frauds and corruption in the financial fields in the Saudi Universities that should be compulsory as a part of syllabus.
Educational institutions can become a right path for setting free a people from ignorance (Efiong, 2012). This is because knowledge is only that can easily passed through students who are establishing future values and character. It is the fact that students are the future work force of any country’s economy, and therefore they should be empowered with sufficient and appropriate knowledge and skills for their estimated tasks. It is argued in the study that forensic accounting education and services would provide the solution for fraud prevalence in Saudi Arabia. Due to the changing social, regulatory and economic environment the Forensic accounting become an interesting topic of to many current researches. Results of a recent researches show that the demand for forensic accounting is estimated to continue to increase and numbers of universities are planning and formatting to provide forensic accounting education as a part of curriculum (Rezaee, Crumbely, & Elmore, 2006). The previous perception studies have also shown that various stakeholder groups reach agreement on the core skill sets required of the modern Forensic accounting. There is an excess of research on forensic accounting especially on the skill sets required of such a professional. In Nigeria, forensic Accounting presents a relatively new area of enquiry. To the best of the researchers knowledge, only very few tertiary institutions (including Nnamdi Azikiwe University) are offering courses in Forensic Accounting. Correspondingly, few local researches are available in this area going by the extensive literature review undertaken by the researcher in the course of this study. As forensic accounting is a new growth area in Nigeria, it is important that perception studies are done particularly in respect of accounting academics that will drive the needed change in forensic accounting education. This is the gap this research will help to fill.
The financial corruption and fraud are increased in many third world countries, Saudi Arabia included. Several cases of corruption and misappropriation of funds have been committed in both government and corporate sector and these could increase in the coming years if nothing is done. There is increasing pressure on government and corporate organizations to develop effective systems to curb corruption and fraud. One of the surest ways of dealing with these issues is the introduction of forensic accounting into the auditing and accounting courses in the country's tertiary learning institutions such as universities and colleges offering such courses. The technique of forensic accounting is useful and has been used to detect fraud in many developed countries. This research focuses on exploring how forensic accounting education and practice would enhance fraud prevention and detection in Saudi Arabia if it became a part of curriculum at tertiary level. The main focus of this research study is to describe the promise and reality of creating fraud and forensic accounting courses and curriculum in Saudi Universities.
The financial corruption and fraud is increased in many third world countries, Saudi Arabia included. Several cases of corruption and misappropriation of funds have been committed in both government and corporate sector and these could increase in the coming years if nothing is done. So one of the surest ways of dealing with these issues is the introduction of forensic accounting into the auditing and accounting courses in the country's tertiary learning institutions such as universities and colleges offering such courses. There is need to provide guidance for training and development in the area of fraud and forensic accounting for executives, management, attorneys, board members, audit committee members, and other interested stakeholders. So this study aims to develop forensic accounting an education program that can fit in most Saudi universities.
Objectives of the study
The objectives of the study will be as under:
1. To develop a holistic education model to consider incorporating fraud and forensic accounting education in the curriculum for tertiary programs in Saudi Universities.
2. To identifying the knowledge and skills necessary to enter in the field of fraud and forensic accounting as a part of tertiary education in Saudi Universities.
3. To develop educational guidelines for educators, trainers, and students interested in fraud and forensic accounting through a course/training module.
Research Questions
1. How can fraud and forensic accounting are incorporate into the existing accounting curriculum in Saudi Universities.
2. What would be the necessary the knowledge and skills that need to be introduced in the curriculum model of forensic accounting for tertiary education in Saudis Universities?
3. How will be the educational guidelines for educators, trainers, and students interested in fraud and forensic accounting through a course/training module?
Significance of the study:
The deep study on the Forensic Accounting would help to analyze the key challenges to incorporating fraud and forensic accounting into existing accounting curriculum in Saudis Universities. Moreover, an education system that includes fraud and forensic accounting will be very essential in countries that face corrupt and fraudulent government and corporate institutions all over the world. This study will be also helpful in identifying the knowledge and skills necessary to enter in the field of fraud and forensic accounting as a part of territory education in Saudi Universities. This study will also motivate to the curriculum wings to introduce integrating fraud and forensic accounting program into tertiary education in Saudi universities. This Current study will also provide a way to understand that how forensic accounting education and practice would enhance fraud prevention and detection.
Research Design
The conduct of this research would be based on the pragmatic epistemology, combining both the positivism and social constructionism (interpretivism) paradigms. It would be begun with critical review of literature and underpinning theories. The Model Curriculum guidelines for fraud and forensic accounting would be developed in three main phases:
1. To constitute a planning panel to guide the project and selecting the members of a technical working group of subject matter experts,
2. To develop the curriculum guidelines
3. To field-testing those guidelines.
In order to complete these three phases researcher would need to adopt as a mixed methods approach that employs both qualitative as well as quantitative methods. The mixed methods research Design would be preferred because the qualitative and quantitative method gives a better understanding of the study. The qualitative method will employs a combination of semi-structured, face-to-face in-depth interviews Protocol and Focus Group Discussion (FGD). The qualitative method would cover first (to constitute a planning panel to guide the project) and second (To develop the curriculum guidelines) phase while the quantitative method will involve a survey technique in order to cover the third (To field-testing those guidelines) phase.
Population
The population of this study will comprise four different groups including academics, users of financial statements, managers (preparers of financial statements) and the auditors in western region of Saudi Arabia. The various stakeholders in accounting education system in institutions of Saudi Arabia will also include in Population. All tertiary institutions, Students, Professors, and administrators in accounting schools who have the relevant knowledge regarding accounting into auditing that is needed in this research will be the Part of this Research study. Academics will be chosen because they are involved in developing the curricula of accounting, auditing and forensic accounting.
Sample:
Three samples were selected from three populations (accounting practitioners, accounting undergraduate students and accounting academics) for this study
A sample of 800 respondents from four different groups includes users of financial statements, accounting practitioners, accounting undergraduate students and accounting academics in western region of Saudi Arabia will be selected through multistage sampling technique.
Sampling Technique:
Multistage sampling technique will be used to select sample of this research study.
1. In the first stage, 3 states of western region of Saudi Arabia will be selected randomly. This selection will be based on the availability of fraud cases and practitioners who had been involved in their prosecution or defense.
2. In the second stage, nine Public and private Sector Accounting Universities and institutions in the three states of western region of Saudi Arabia whom the accounting academic-respondents will be selected using purposive sampling technique. These institutions will be chosen because they have forensic accounting course in their accounting programme.
3. In the third stage, we will be sampled practitioners, administrator and managers in the three states, with four practitioner-groups drawn from eight organizations purposively.
4. In fourth stage, all male and female respondents will be selected through convenient sampling technique.
Research Instrument
For the Data collection of this study “The Curriculum Development Model” would be adopted for the Building Knowledge, Skills, and Abilities in Financial Crime, Fraud, and Forensic Accounting. This Curriculum Model of Kranacher, Morris, Pearson, & Riley, (2008) will be adopted with slightly modification according to the nature of this current study. Questionnaire will be used as the tool of research for collecting data which will divide into two parts. First part of the questionnaire would be consisted of demographic variables while the second part would be consisted of interval scale about Forensic Accounting.
Furthermore, a semi structured questionnaire for interview protocol and focus group discussion will be used for more understanding of the terms
Data Collection
The researcher will be visited personally in the selected universities, institutions and stakeholders across the country and administers questionnaires in order to collect data. First part of the questionnaire will be consisted of demographic variables while the second part will be consisted of interval scale. Data would also be gathered with the help of interview protocol and focus group discussion.
Data Analysis
Data would be analyzed with the help of descriptive and inferential statistics. For this purpose SPSS version 21 will be used to perform the analysis. Descriptive statistics will be used to determine the mean and standard deviation. The Chi-Square (test of independence) test will also be applied in research for two categorical variables in the population. The content analysis will be used to evaluate the content of the current accounting syllabus in Saudi universities and other tertiary learning institutions. Nvivo 10, a qualitative data analysis software package, would be used to analyze qualitative data. These would be done in order to achieve the objectives of the study and test the propositions were necessary
References
Adefila, J. J., Kasum, A. S., & Olaniyi, T. A. (2005). The global endemic nature of financial malpractices: an analytical appraisal. African Journal Of Management, 11-20.
Chary, T. S. (2005). How forensic accounting can check corporate ills. The Chartered Accountant, 1040 – 1043.
Crumbley, D. L., Heitger, L. E., & Smith, G. S. (2007). Forensic and Investigative Accounting (3rd ed.). Chicago: Commerce Clearing House.
Efiong, E. J. (2012). Forensic Accounting Education: An Exploration of Level of Awareness in Developing Economies-Nigeria as a Case Study. International Journal of business and management, 7(4), 26-34.
Enyi, E. P. (2008). Detecting causes of variances in operational outputs of manufacturing organization: a forensic accounting investigation approach. Retrieved 11 09, 2018, from http://ssrn.com/abstract=1144783
Kasum, A. S. (2012). Forensic Accounting for Financial Malpractices in Developing Countries: An Analytical Review of the State of the Art. In Emerging Fraud, 65-73.
Kranacher, M. J., Morris, B. W., Pearson, T. A., & Riley, R. A. (2008). A Model Curriculum for Education in Fraud and Forensic Accounting . ISSUES IN ACCOUNTING EDUCATION, 505–519.
Owojori, A. A., & Asaolu, T. O. (2009). The role of forensic accounting in solving the vexed problem of corporate world. European Journal of Scientific Research, 29(2), 183-187.
Ratlift, R. L. (1996). Internal Auditing: Principles and Techniques ( 2nd ed ed.). Florida: The Institute of Internal Auditors.
Rezaee, Z., Crumbely, L. D., & Elmore, R. C. (2006). Forensic accounting education: A survey of academicians and practitioners. Advances in Accounting Education. .