Inattentional blindness and its relevance to teaching forensic accounting and auditing

Kleinman, Gary; Anandarajan, Asokan

doi:10.1016/j.jaccedu.2011.08.002

Cited by 18 publications

(11 citation statements)

References 9 publications

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“…Kassem and Higson (2012) argued that due to factors that were ignored such as the fraudster's capabilities and skills, it is hard to identify the reasons for fraud appearances. Furthermore, a phenomenon of inattentional blindness may also contribute to fraud occurrence as individual may fail to see other things surrounded them that permit fraud occurrence (Kleinman and Anandarajan, 2011). As fraud becoming more complicated and sophisticated, Ozili (2020) suggested for fraud investigators to integrate into their practice the complexity of fraud before undergo fraud investigation process.…”

Section: Fraud Triangle Theorymentioning

confidence: 99%

The risk of financial fraud: a management perspective

Hashim

Salleh

Shuhaimi³

et al. 2020

JFC

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Purpose A number of highly publicised scandals such as Enron, Lehman Brothers, Parmalat, Satyam, Toshiba and 1MDB (to name a few) have heightened the awareness of the effects of fraudulent financial reporting. While enormous measures have been taken to curb the fraudulent activities among large and small businesses, the issues are still alarming worldwide. Thus, this study aims to explore the extent to which the prevalence of fraud risk in state-controlled companies and to enhance understanding of the underlying reasons of the fraudulent activities. Design/methodology/approach As this study is a descriptive and exploratory in nature, an exploratory case study method was used in four state-controlled companies. Using the fraud triangle theory to underpin this study, the qualitative face-to-face interviews were carried out with top management of the companies. Findings The study reveals a high risk of fraud occurrence at state-controlled companies that involve dealing with various suppliers, governments, customers and shareholders, even when standard operating procedures and rules and regulation are in place. The apparent reason for this phenomenon is attributed to not only opportunities but also incentives and rationalisations in engaging fraudulent activities. Originality/value As there are relatively few qualitative studies conducted in this area specifically among Malaysian state-controlled companies, this study extends the fraud literature by examining risk exposure and reasons underlying the fraudulent activities. The findings demonstrate that to a certain extent, the fraud triangle theory explains the motivations behind the fraudulent activities. The finding from this study is relevant to regulators, investors, companies and academicians in understanding, preventing and combating fraud.

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Section: Fraud Triangle Theorymentioning

confidence: 99%

The risk of financial fraud: a management perspective

Hashim

Salleh

Shuhaimi³

et al. 2020

JFC

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“…The significance of building potential forensic accountants' capacity through proper training and education (Carpenter et al, 2011) is highly reflected in the development of the conceptual model, which is expected to benefit the discipline from several angles -education, practical training, and capacity development -a novel initiative that contributes to and fills the current void in the literature (see also Kleinman & Anandarajan, 2011). The framework apprises all stakeholders on the flaws present in their respective contributions to the discipline's development.…”

Section: Resultsmentioning

confidence: 99%

“…In the aftermath of several accounting scandals such as Enron and WorldCom in the USA, HIH Insurance in Australia, Royal Ahold in the Netherlands, Parmalat in Italy, and Equitable Life Assurance Society in the UK (Kleinman & Anandarajan, 2011), as well as the collapse of one of the "Big Five" auditing firms (Arthur Anderson), and the two episodes of financial crises that followed afterwards, awareness about white-collar frauds committed by employees through embezzlement of funds, ensuring personal financial and non-financial gains at a cost to the society, and fraudulent financial reporting, has increased over the past (McMullen & Sanchez, 2010); Harris, 2012). Despite criminal prosecutions and formal punishments (see Carnes & Gierlasinski, 2001), accounting as a professional has had legitimacy and trust shocks experienced as a result as well (see Carnegie & Napier, 2010;Konishi, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…Despite criminal prosecutions and formal punishments (see Carnes & Gierlasinski, 2001), accounting as a professional has had legitimacy and trust shocks experienced as a result as well (see Carnegie & Napier, 2010;Konishi, 2010). The accounting and auditing professions were particularly hit hard at the collapse of Enron (Kleinman & Anandarajan, 2011). The promulgation of the Sarbanes-Oxley Act 2002 and later on the Public Company Accounting Oversight Board (PCAOS) and the Statement of Accounting Standards No.…”

Section: Introductionmentioning

confidence: 99%

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Culture-Specific Forensic Accounting Conceptual Framework: A Skills Set Theoretical Analysis

Shanikat

Khan²

2013

IJBM

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Forensic accounting, given its peculiar investigative stance, requires a specific skills set on the part of the forensic accountant, that integrates accounting, auditing and investigative skills. The Jordanian Anti-Corruption Commission's (JACC) struggle to investigate Maward's, a Jordanian state-own company, suspected corruption has raised serious concerns regarding the weak state of forensic accounting in Jordan, and the need for its adaptation to suit the country's peculiar context, to successfully institutionalize at the wider societal level and benefit the state in its aim for ensuring efficient utilization of the scarce resources at its disposal. This study is an attempt to deduce a country-specific conceptual framework for forensic accounting, which can be replicated, with suitable adaptations, to other countries with similar cultural backgrounds, and put forth some theory-supported suggestions to help guide future research in the area.

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“…the behavioural aspects of fraudsters. They should have an understanding of the fraud-facilitating environment (Kleinman and Anandarajan, 2011). Forensic accountants should possess mentality, method and experience (Prabowo, 2013).…”

Section: Discussionmentioning

confidence: 99%

Forensic accounting: a blend of knowledge

Tiwari

Debnath

2017

JFRC

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Purpose The purpose of this paper is to develop an insight into the skill sets that forensic accounting practitioners need to possess to succeed in the practice of forensic accounting. Design/methodology/approach The present paper is based on a literature review. Findings Forensic accounting education is multi-disciplinary. It encompasses auditing, accounting, statistics, information technology (IT), legal rules and human skills. It is similar to auditing, yet different. Hands-on statistical tools act like an additional equipment for quick delivery of the output when data are large. Proficiency in using IT tools is a must to detect cybercrimes. Human skills are gaining importance because of social engineering attacks. Forensic accountants must be acquainted and updated with the relevant laws. Various investigative skills and knowledge are also essential in forensic accounting. Practical implications Forensic accounting education can be developed as a separate discipline for proper regulation of forensic accounting profession. In that case, the need for development of separate forensic accounting standards may arise. This issue needs to be dwelt upon by the academia and professional bodies. Originality/value The paper will enable the universities/institutes to design the appropriate curricula, assigning due consideration to the required knowledge and skill sets in forensic accounting education.

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Inattentional blindness and its relevance to teaching forensic accounting and auditing

Cited by 18 publications

References 9 publications

The risk of financial fraud: a management perspective

The risk of financial fraud: a management perspective

Culture-Specific Forensic Accounting Conceptual Framework: A Skills Set Theoretical Analysis

Forensic accounting: a blend of knowledge

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