Factors affecting organizational intention to adopt forensic accounting practices: A case of Jordan
-
DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.27
-
Article InfoVolume 21 2023, Issue #3, pp. 343-350
- Cited by
- 506 Views
-
226 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Lack of effective internal control, subpar financial reporting, and inefficient audits have all harmed an organization’s ability to operate efficiently. Organizations are now under pressure to enhance their auditing procedures in order to stop and catch fraud. Forensic accounting techniques have gained attention in this direction as a fraud identification and prevention tool. This study aims to examine the factors that affect an organization’s intention to adopt forensic accounting practices. The analysis is based on primary data and uses a sample of 273 employees from listed firms in Jordan to examine this phenomenon. Specifically, the study used correlation and regression analysis to investigate whether coercive, mimetic, and normative pressures determine organizations’ intentions to use forensic accounting practices. The results confirm a significant positive relationship between coercive, mimetic, and normative pressure and the organizations’ intentions to use forensic accounting practices among Jordanian firms. These results highlight the importance of management consultants and training of the employees for appropriate fraud risk management.
- Keywords
-
JEL Classification (Paper profile tab)M41, M42, M48
-
References42
-
Tables7
-
Figures0
-
- Table 1. Sample description
- Table 2. Number of respondents
- Table 3. Reliability test
- Table 4. Demographic profile of respondents
- Table 5. Descriptive statistics
- Table 6. Correlation results
- Table 7. Regression results
-
- Al-Abbadi, H. M., Alrawashdeh, B., Dabaghia, M. N., & Darwazeh, R. N. (2021). The challenges of application of forensic accounting in Jordan. Academy of Strategic Management Journal, 20(si2), 1-10.
- Alrawashedh, N. H. (2020). Management of earnings and shareholding structure: Evidence from Jordan. Test Engineering and Management, 83(5), 8724-8740.
- Alrawashedh, N. H. (2022). Evaluation of continuity impact under the Covid 19 pandemic, during the preparation of 2020 financial reports, and external auditors report of public limited shares companies in Jordan. Academy of Accounting and Financial Studies Journal, 26(si2), 1-17.
- Alrawashedh, N. H. (2023). The reality of social responsibility accounting in commercial banks listed on the Amman Stock Exchange. Banks and Bank Systems, 18(2), 63-74.
- Ashworth, R., Boyne, G., & Delbridge, R. (2009). Escape from the iron cage? Organizational change and isomorphic pressures in the public sector. Journal of Public Administration Research and Theory, 19(1), 165-187.
- Bhasin, M. L. (2013). Corporate governance and forensic accountants’ role: Global regulatory action scenario. International Journal of Accounting Research, 1(1).
- Bhasin, M. L. (2017). Integrating corporate governance and forensic accounting: A study of an Asian country. International Journal of Management Sciences and Business Research, 6(1), 31-52.
- Bologna, G., & Lindquist, J. (1995). Fraud auditing and forensic accounting: New tools and techniques (2nd ed.). New York: John Wiley & Sons.
- Boys, J. (2008). Forensic accounting in New Zealand: Exploring the gap between education and practice. Accounting & Finance Association of Australia and New Zealand.
- Bovens, M. (2007). Analysing and assessing accountability: A conceptual framework 1. European law journal, 13(4), 447-468.
- Bressler, L. (2012). The role of forensic accountants in fraud investigations: Importance of attorney and judge’s perceptions. Journal of Finance and Accountancy, 9.
- Button, M., Johnston, L., Frimpong, K., & Smith, G. (2007). New directions in policing fraud: The emergence of the counter fraud specialist in the United Kingdom. International Journal of the Sociology of Law, 35(4), 192-208.
- Carpenter, V. L., & Feroz, E. H. (2001). Institutional theory and accounting rule choice: An analysis of four US state governments’ decisions to adopt generally accepted accounting principles. Accounting, Organizations and Society, 26(7-8), 565-596.
- Clement, R. W. (2005). The lessons from stakeholder theory for US business leaders. Business Horizons, 48(3), 255-264.
- Curtis, G. E. (2008). Legal and regulatory environments and ethics: Essential components of a fraud and forensic accounting curriculum. Issues in Accounting Education, 23(4), 535-543.
- Cyert, R. M., & March, J. G. (1983). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice-Hall.
- Digabriele, J. A. (2008). An empirical investigation of the relevant skills of forensic accountants. Journal of Education for Business, 83(6), 331-338.
- DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147-160.
- Einwiller, S. A., Carroll, C. E., & Korn, K. (2010). Under what conditions do the news media influence corporate reputation? The roles of media dependency and need for orientation. Corporate Reputation Review, 12, 299-315.
- Fichman, R. G. (1992). Information technology diffusion: A review of empirical research. Proceedings of the 13th International Conference on Information Systems (pp. 195-206). University of Minessota, Mineapolis.
- Gomes, R. C. (2006). Stakeholder management in the local government decision-making area: Evidences from a triangulation study with the English local government. Revista de Administração Contemporânea (Journal of Contemporary Administration), 10(spe), 77-98.
- Hashem, F. (2021). The role of forensic accounting techniques in reducing cloud based accounting risks in the Jordanian five stars hotels. WSEAS Transactions on Business and Economics, 18, 434-443.
- Houck, M. M., Kranacher, M. J., Morris, B., Riley Jr, R. A., Robertson, J., & Wells, J. T. (2006). Forensic accounting as an investigative tool. The CPA Journal, 76(8), 68-79.
- Ibex, J. T., & Grippo, F. J. (2008). Forensic accounting: Should it be a required course for accounting majors? Journal of Applied Business Research (JABR), 24(1).
- James, W. (2009). Rationality, institutionalism and accounting change: Understanding a performance management system within an Australian public sector entity. Journal of Accounting & Organizational Change, 5(3), 362-389.
- Järvinen, J. (2006). Institutional pressures for adopting new cost accounting systems in Finnish hospitals: Two longitudinal case studies. Financial Accountability & Management, 22(1), 21-46.
- Khadaroo, M. I. (2005). An institutional theory perspective on the UK’s Private Finance Initiative (PFI) accounting standard setting process. Public Management Review, 7(1), 69-94.
- Krejcie, R., & Morgan, S. (1970). Sample size determination. Business Research Methods, 4(5), 34-36.
- Levin, C., & Coburn, T. (2011). Wall Street and the financial crisis: Anatomy of a financial collapse (Majority and Minority Staff Report). United States Senate, Permanent Subcommittee on Investigations, Committee on Homeland Security and Governmental Affairs.
- Maingot, M. (2006). The evolution of the standard unqualified auditor’s report in Canada/L’évolution du rapport type du vérificateur au Canada. Canadian Accounting Perspectives, 5(1), 19-36.
- Muthusamy, G. (2011). Behavioral intention to use forensic accounting practices for the detection and prevention of fraud by large Malaysian companies. Curtin University.
- Okoye, E. I. (2009). Forensic accounting in developing economies: Problems and prospects. The University Advanced Research Journal, 1, 1-13.
- Oliver, C. (1991). Strategic responses to institutional processes. The Academy of Management Review, 16(1), 145-179.
- Porter, S. F., & Crumbley, D. L. (2012). Teaching interviewing techniques to forensic accountants is critical. Journal of Forensic & Investigative Accounting, 4(1), 122-146.
- PwC. (2022). Protecting the perimeter: The rise of external fraud (PWC’s Global Economic Crime and Fraud Survey 2022).
- Ramaswamy, V. (2005). Corporate governance and the forensic accountant. The CPA Journal.
- Rezaee, Z., Crumbley, D. L., & Elmore, R. C. (2004). Forensic accounting education: A survey of academicians and practitioners. Advances in Accounting Education.
- Sahdan, M. (2018). Organisational Intention to Use Forensic Accounting Services in Detecting and Preventing Fraud: The Case of English Local Authorities. University of Huddersfield.
- Smith, G. S., & Crumbley, D. L. (2009). Defining a forensic audit. Journal of Digital Forensics, Security and Law, 4(1), 3.
- Teo, H. H., Wei, K. K., & Benbasat, I. (2003). Predicting intention to adopt interorganizational linkages: An institutional perspective. MIS Quarterly, 27(1), 19-49.
- Wesley Lane, S. (2011). Are local authority fraud teams fit for purpose? Journal of Financial Crime, 18(2), 195-213.
- Yoon, T. E., & George, J. F. (2013). Why aren’t organizations adopting virtual worlds? Computers in Human Behavior, 29(3), 772-790.