The paper 'Fraud Detection in Australian Organizations' is a wonderful example of a financial and accounting research proposal. This study examines the effects of fraud detection in Australian organizations. The aim of the survey is to determine the degree of interrelatedness between fraud detection and forensic accounting. Primary data was collected using applicable methods of collecting data, and analysis of the data performed, and there is a great relationship between forensic accounting and fraud detection. Therefore confirming that there is a great benefit of the forensic accounting department in the organization to reduce and control fraud. In the past years, there has been a significant increase in white-collar crimes and accounting scandals.
Enron and world com debacles illustrated by Crumbley, 2005 are some of the examples of accounting scandals that have faced the world in the recent past. Due to this, it has caused the spotlight to be on the accounting profession, therefore, the creation of a new niche, forensic accounting. Demand for forensic accountants was high so in June 2008 there was the establishment of the certified in financial forensic (C. F.F) by the American Institute of certified public accountants.
In that year, they had a target of 900 certifications, but they surpassed this objective, the year ended, and they achieved three thousand five hundred certifications. It proved that many organizations require this accountant and the desire to have the skill set by various analysts was eminent. Fraud, (Mark, 2011) is the intentional act of manipulation, deceit, deception, and cheating in the reporting of financial information. Therefore, this is an intention that is purposed by an individual to alter the financial reporting to change stakeholder judgment on the company, or to enable the individual to embezzle funds for his gain.
Cases of fraud in the organization have been on the constant increase in recent years, mainly perpetrated by the top management through their subordinates. This is the case not only in Australia but also in the world over (Gordon, 2010), where employees of a company are manipulating their financial statements to lure in investors and to have a greater competitive edge on their competitors. (Arokiasamy and Cristal, 2009) Forensic accounting is the application of financial knowledge and investigative mindset so as to uncover issues that can be used as evidence of fraudulent activities.
The primary consumers of forensic accounting knowledge are attorneys of the law who require such information so as to provide evidence for them in the court proceedings. It is a discipline that engages in the knowledge of fraud, financial know-how, and a good understanding of the activities that take place in an organizational set up (Bologna and Lindquistn, 1987). Traditional accountants and forensic accountants are different in that for one to be a forensic accountant a different skill set is required for the job.
An individual should possess professional responsibilities and practice management, should be equipped in law, courts and dispute resolution techniques, planning and preparation skills, information gathering reporting, and testimony. Communication skills are a valuable skill that a forensic accountant should have and also the ability to simplify information. In regards to the Australian case, there is enough suspicion to prove that it has not been spared from fraudulent activities. Many cases can act as evidence to prove the validity of this statement and it just goes to show that forensic accounting knowledge is of high importance in today’ s society.
Forensic accounting is a field that encompasses accounting, auditing and investigative skills (Dhar and Sarkar, 2010) define the profession as a science that deals with the application of accounting competencies, auditing methods and techniques, and methods of conflict resolution that require one to have investigative knowledge. Therefore, this practice is done by deeply examining the financial reports, inquiries from various stakeholders such as debtors, creditors, managers, and suppliers, then careful investigations are carried out, and the cause is noted, and answers provided.
Crumbley, D. L. (2003). What is forensic accounting? Forensic accounting: Older than you think. Journal of Forensic Accounting.
Arokiasamy, L., & Cristal-Lee. S. (2009). Forensic accounting: Public acceptance towards occurrence of fraud detection. International Journal of Business and Management.
Williams, J. W. (2002). Playing the Corporate Shell Game: The Forensic Accounting and Investigation Industry, Law, and the Management of Organizational Appearances. Doctoral Dissertation, Toronto: York University.
Dhar, P., & Sarkar, A. (2010). Forensic accounting: An accountant’s vision. Vidyasagar University Journal of Commerce, 15(3), 93-104.
Parr, Russell L.; Smith, Gordon V. (2010). Intellectual property: valuation, exploitation, and infringement damages. Hoboken, N.J.: Wiley. pp. Chapter 33.
Nigrini, Mark (2011). "Forensic Analytics: Methods and Techniques for Forensic Accounting Investigations". Hoboken, NJ: John Wiley & Sons Inc.
Bologna, G.J., & Lindquist, R.J. (1987). Fraud auditing and forensic accounting: New tools and techniques, Hoboken, New Jervey: Wiley.