A Qualitative Perspective of Practical Implication of Forensic Accounting for Fraud Detection and Prevention in Pakistan

Abstract

<jats:p>The staple objectives of this study are to determine the importance and worth of forensic accounting in the context of Pakistan. Accounting frauds are increasing day by day, especially in the commercial sector of Pakistan. In the majority of Pakistani companies' accountants are inexperienced and nonprofessional and unable to understand the new financial reporting standard that becomes a cause of enhancing accounting frauds. This study followed a qualitative approach to collect data through interviews from both participants, including academicians and practitioners who are working in a prestigious academic institution and business organization where the concept of forensic accounting is taught and implemented with the right letter and spirit. Finding have been derived by transcribing data through coding and taking essential themes regarding the practical implementation of forensic accounting practices in Pakistan by using NVIVO software. The findings of the study indicated that forensic accounting scope is broad, especially regarding the increasing ratio of white-collar crimes and digital crimes, and in a near-future lot of opportunities will be arises in Pakistan in the context of forensic accounting. Both academicians and practitioners agreed that the importance of forensic accounting could not be overlooked, especially concerning digital and white-collar frauds both in the private sector and public sector organizations.</jats:p>

Auditors' perspectives on financial fraud in Pakistan – audacity and the need for legitimacy

“…This conclusion is consistent with Khan et al's (2020) argument, based on quantitative analysis of nearly 300 questionnaires sent to members of firms listed on the Pakistan Stock Exchange, that the internal audit function in the nation would benefit from greater independence and a more "rigorous" (p. 49) hiring process. Another recent study, Iqbal and Aslam (2020), supports the contention that the problems in financial reporting outcomes are widespread, with significant growth across Pakistan in digital and white-collar crime levels more generally the result. The authors suggest that one of the main problems is that a majority of the nation's company accountants are inexperienced, lacking professional qualifications and therefore unable to fully understand new financial reporting standards.…”