Impact of Forensic Accounting on Organisation

Running head: FORENSIC ACCOUNTING
Impact of Forensic Accounting on Organisation
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FORENSIC ACCOUNTING
Executive Summary
The study focuses on the conceptual and theoretical analysis of the forensic accounting in the
retail corporations in Australia. The retail sectors often experience a collapsing situation that
includes the date of insolvency, unauthorized leakage of commercially sensitive information, and
theft of intellectual properties. The research study intends to evaluate the extent to which the
forensic accounting helps in aiding the diverse fraudulent activities and influencing the internal
corporate governance process.
The audit profession indicates that the management ensures a chief accountability for
recognizing and preventing the fraudulent business concerns. The effective forensic accounting
procedures help in understanding the method of motivating the employees to maintain the high
level of integrity. Forensic accounting process ensures that the field of the corporate governance
takes the active participation in mitigating the emerging risks within the organisation.
The study discusses the appropriate design and data collection process for investigating the
major aspects of the research area. The use of the mixed method approach is suitable for this
study. Considering the techniques of primary and secondary data, the study will develop the
concerned ideas about the subject matter.

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FORENSIC ACCOUNTING
Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background of the Research......................................................................................................4
1.2 Problem Statement.....................................................................................................................5
1.3 Research Aim.............................................................................................................................6
1.4 Research Objectives...................................................................................................................6
1.5 Research Questions....................................................................................................................7
2.0 Literature Review......................................................................................................................7
2.1 Concept of Forensic Accounting...............................................................................................8
2.2 Conceptual Analysis of ‘Fraud’...............................................................................................10
2.3 Corruption and Fraud in Australian Corporations...................................................................10
2.4 Impact of Forensic Accounting in Detecting the Frauds.........................................................12
2.5 Financial Accounting Benefits in providing the connected link.............................................13
2.6 Effectiveness of the Forensic Accounting on Improving Corporate Governance...................13
2.7 Article relevancy with the literature........................................................................................14
2.8 Gap in the literature.................................................................................................................15
3.0 Research Methodology............................................................................................................16
3.1 Research Type.........................................................................................................................16
3.2 Research Approach..................................................................................................................16
3.3 Data Collection Type...............................................................................................................17
3.4 Sampling..................................................................................................................................17
3.5 Data Analysis...........................................................................................................................18
3.6 Ethical Concerns......................................................................................................................18

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References......................................................................................................................................19

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1.0 Introduction
The current business world has been facing the considerable challenges from the
fraudulent activities and numerous scandals in every industry. The forensic accounting is a
terminology that deals with the accounting, investigation, and auditing skills to examine the
financial statement of the company. With the help of a structured forensic accounting document,
a company can present the proof to the court if any fraudulent act is suspected. According to
Seda and Kramer (2015), it is important for each organisation to investigate the fraud and
corruption, which are the significant elements of the role of a forensic accountant. In addition to
this, forensic accounting even deals with several mismanagements occur within the organisation.
The study will thus focus on the conceptual and theoretical analysis of the forensic accounting in
the retail corporations in Australia. The identification of the research aim, objectives, and
research questions will be connected to the findings obtained from the literature. The use of the
appropriate methodologies will also be discussed in this study to gather the insightful knowledge
on this context.
1.1 Background of the Research
The current business scenario is widely surrounded by the extensive competition. Each of
the organisations strives to achieve excellence and strengthen the competitive position. Louwers
(2015) identified that this entire business arena has been experiencing the continuous frauds and
scandals regularly. Forensic accounting is a practice that audits the internal financial statements
of a firm to identify the loopholes and undertake the fruitful steps to mitigate the issues. Bhasin
(2017) even defined that forensic accounting generally uses the different accounting skills that
are effective enough to conduct an investigative act against the fraudulent activities underlying

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the organisational functions. The report acts as the proof for the fraudulent activities that can be
shown to the court or any legal proceeding. It has been observed that the retail corporations face
such discrepancy in their financial activities on a regular basis. Bhasin (2015) observed that the
retail sectors often experience a collapsing situation that includes the date of insolvency,
unauthorized leakage of commercially sensitive information, and theft of intellectual properties.
In fact, in some of the cases, it is also observed that the retail corporations fail to comply with the
regulatory governance, such as Competition and Consumer Act 2010 (Bologna and Shaw,
2013). The development of the forensic auditing process would be helpful in such case to
identify the discrepancy and take the action against it to mitigate the challenges quickly.
1.2 Problem Statement
The research study is entirely concentrating on exploring the conceptual and theoretical
underpinning related to the forensic accounting system. The research study is focusing on
critically examine the recognizable impacts of the forensic accounting process for addressing and
resolving the fraudulent activities within the retail firms. The observation of this examination
report would suggest the appropriate corporate governance process that can be undertaken to
mitigate the challenges in a significant manner. The research study intends to evaluate the extent
to which the forensic accounting helps in aiding the diverse fraudulent activities and influencing
the internal corporate governance process. Botes, and Saadeh (2016) implied that the external
auditing credibility generally depends on the techniques and procedures undertaken by different
countries. This analysis even involves with numerous criticisms directed by the external
activities. Such financial scams cause the lack of integrity among the public that leads towards
property losses, which is a greater concerns for the business.