Applicability of forensic accounting to reduce fraud and its effects on financial statement of jordanian shareholding companies from the perspective of judiciary and certified public accountant

Abstract

This research aimed to investigate the applicability of forensic accounting to reduce fraud and its effects on the financial statement of Jordanian Shareholding Companies from the perspective of Judiciary and Certified Public Accountant. This study used a descriptive-analytical method. To elicit data from the participants, the researcher used a questionnaire survey distributed over a randomly selected sample from competent authorities in the financial criminal cases in the Jordanian Courts (Judges, and Public Prosecutors), Certified Public Accountants licensed to practice auditing, and chartered accountants with expertise in financial cases in the Jordanian courts, to investigate their perceptions and views about the applicability of Forensic Accounting to reduce fraud and its effects on the financial statement of Jordanian Shareholding Companies. The researcher used the statistical analysis program (SPSS) to analyze the collected data besides the regression equation test, the statistical differences test for the non-scientific samples. The findings of the study showed that there is a necessity for providing the requirements, components, procedures, and activities of Forensic Accounting in Jordan to reduce fraud and its effects on the financial statement of Jordanian Shareholding Companies from the perspective of Judiciary and Certified Public Accountant. Also, the results of the study indicated that there is a difference between judicial authority and Certified Public Accountants' perceptions. Based on these findings, the study lists a set of recommendations the most important of which is adopt the requirements and principles of applying Forensic Accounting by decision-makers and professional organizations, and to establish an official and independent professional association of Forensic Accountants to develop forensic accounting standards and legislation, and to raise the awareness of the judicial authorities concerning the importance of the concept of Forensic Accounting in resolving financial criminal cases, and the extent of its contribution in rationalizing judicial decisions.