Evaluating the perceived usefulness and fairness of forensic accounting and investigation standards
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 25 August 2023
Issue publication date: 27 October 2023
Abstract
Purpose
This study aims to investigate the perceived willingness to adopt and use Forensic Accounting and Investigation Standards (FAIS) in Forensic Accounting and Investigation (FAI) assignments. The study also analyses the usefulness of FAIS in achieving the principle of natural justice (PNJ) concerning fairness.
Design/methodology/approach
The respondents comprised 118 accounting professionals whose online survey responses were analyzed descriptively. This study also uses a 2 × 2 contingency analysis representing two levels of usefulness and fairness.
Findings
The results revealed that FAIS 410 received the highest mean rating while FAIS 240 received the lowest mean rating in willingness to adopt and use FAIS, and most of the standards were related to the PNJ concerning fairness. The study shows the accounting professionals’ readiness to adapt and flourish with the help of these Standards in FAI assignments.
Practical implications
The findings of this study will increase practitioners’ awareness of the usefulness and fairness of FAIS, which will enhance their understanding of the significance of implementing these newly developed standards to harmonize the investigative process in forensic audits. Additionally, the findings may encourage regulators, researchers, accounting bodies and their members to adopt and conduct further FAIS studies that can advance financial crime prevention, detection and investigation knowledge.
Originality/value
This paper substantially contributes to the literature as it is the first to examine the usefulness and fairness of “Forensic Accounting and Investigation Standards” in the context of forensic audits and investigations, which has not been previously explored.
Keywords
Acknowledgements
The authors express sincere gratitude to the Editor-in-Chief and the anonymous referees for their meticulous and insightful comments, which significantly contributed to the improvement of the paper. The authors would like to acknowledge the Ministry of Social Justice & Empowerment, Government of India, for generously supporting the research with National Fellowship for Scheduled Caste (NFSC) scheme, executed by the esteemed National Scheduled Castes Finance and Development Corporation (NSFDC). We also extend our appreciation to the participants for their invaluable responses to the study.
Citation
Mandal, A. and S., A. (2023), "Evaluating the perceived usefulness and fairness of forensic accounting and investigation standards", Journal of Financial Regulation and Compliance, Vol. 31 No. 5, pp. 754-769. https://doi.org/10.1108/JFRC-12-2022-0157
Publisher
:Emerald Publishing Limited
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