The increasing awareness of financial crimes is growing the demand for forensic accountants to help find against the law financial activity by companies, individuals, and organized crime rings. No subject how much fraud activities increase, there has to always be an anti-fraud scheme to shield against it. To provide availableness of balance and safety from illegitimate business serves is the key reason why Forensic Accounting (FA) is available. Irenas Bookkeeping
Together with the pressing need for Forensic Accounting as a tool to fight fraudulence, this article studies it is applicability in countries of opaque business practices, probe the accessible means that might help in introducing it to the culture, and spots the areas where it is radically needed especially in the countries of financial cloudiness and opacity. The results are based on quantitative and qualitative studies in Lebanon for being perceived as an opaque country, sharing with us the same characteristics that define nations with deceitful financial behaviour suffering from a high level of financial corruption such as money laundering, lack of transparency or satisfactory financial disclosures as well as corruption at the amount of management, supervisory boards and even governments themselves.
The results of the studies uncover that Forensic Accounting is perceived as a means to overcome fraudulent actions. Most of the participants either agreed or firmly agreed on the need to incorporate it in order to prevent scams as well as for detection purposes as , the burkha need. However, the respondents considered this to be new in Lebanon with a highest ratio of men and women (56. 36%) confirming it wasn’t employed by Lebanese companies due to the lack of awareness, personal privacy issues, the nature and type of businesses (family businesses and SMEs), shortage of guidance concerning the standards (local or international) which should be applied and shortage for proper regulations. However respondents showed a positive attitude on the implementation in Lebanon as financially damaged country. Thus with such an encouraging perception between respondents, the issue remains in the introduction and diffusion of Forensic Accounting.
The outcomes of the studies also supported the idea of setting a law that mandates all sectors to submit a Forensic Accounting report. The thought of setting a law that enforces companies to data file such a report was embraced by the vast majority of respondents who also considered that the best means of introducing this system in a country of opaque business country is through the academics curriculum via the graduate student programs. DIFA (Diploma in Investigative & Forensic Accounting) as well as the CPA (Certified Public Accountant) were recommended as the certifications that should be granted in the dangerous countries as in the truth of Lebanon.
Research Problem and Hypotheses
The conversation of the study results are based on the study questions that investigated “To what extent is Forensic Accounting applicable? And how is it introduced? ” In order to answer these questions, there is a need to identify if such a scheme is known at any levels and sectors or whether it is employed or applied as a procedure by financially damaged companies or governmental establishments.
The suggested hypotheses are analysed and evaluated in line with the findings.
Hypothesis 1: Countries with Opaque Business Methods Need Forensic Accounting as a Tool to Deal with Fraud and Corruption.
This kind of study revealed that there is an eagerness to have Forensic Accounting in financially fraudulent countries because of the intensive corruptive acts that are committed and still are without the observation and punishment because the fraudster always gets away with it due to the absence the enough and proper tool to spot and discover these acts. Hereby the urgent need to introduce it in countries with opaque business procedures and create awareness regarding this procedure in several fields and sectors mainly in the financial fields and government sectors.