The Role of Forensic Accounting in the Detection of the Financial Fraud: Evidence from Saudi Arabia | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Salah Ahmed Oraby: Accounting Department, Saudi Electronic University, Saudi Arabia

Abstract:

This research aimed to study the impact of forensic accounting tools on detecting and preventing different forms of financial fraud, including, but not limited to, misappropriation of assets and misleading users of financial statements by some practices that were inconsistent with generally accepted accounting and auditing standards, as well as fraud resulting from the weakness of the internal control systems in Saudi Arabia. To achieve the study goal, the study used a quantitative approach to examine the relationship between forensic accounting tools, forensic accounting financial reporting, and forensic accounting's internal control as independent variables and fraud detection and prevention as dependent variables. The study used the questionnaire tool to collect the primary data required to achieve the study' objective, and least square regression models were used to test the study's hypotheses. The statistical analysis results of the overall regression model showed positive impacts on detecting and preventing financial fraud as the parameter of adjusted R squared recorded 0.5119. While , Individual regression models for forensic accounting tools, financial and financial reporting, and internal control showed positive impacts on detecting and preventing financial as the parameter of adjusted R squared recorded 0.3370, 0.2237, and 0.3341 for Forensic accounting tools, Forensic Accounting's Financial Reporting and Forensic Accounting's internal control, respectively. The study's results will be useful for the decisions of many stakeholders, including but not limited to external and internal auditors and the regulatory authorities.

Page(s): 353-366

DOI: 10.57239/PJLSS-2025-23.1.0029

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 1, Year: 2025

Keywords:

Internal Control Financial Reporting External Auditor Creative Accounting Auditing Standards

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