The Role of Forensic Accounting in Detecting and Combating Manipulation through Creative Accounting Practices

Abstract

This study aims to examine the role of forensic accounting in uncovering creative accounting practices and enhancing the reliability of financial reports. It investigates the justifications and implications of creative accounting, as well as the role of forensic accounting methods, techniques, and procedures in detecting such practices. This includes the application of post-audit techniques, interactive and continuous auditing, completeness testing, and the enhancement of internal control systems and financial report auditing as tools for identifying creative accounting practices and improving the credibility of financial reporting.

The study concludes that greater attention should be given to the field of forensic accounting by incorporating it into the accounting curricula of universities and institutes. This is essential to raise awareness of forensic accounting and to highlight its importance in dispute resolution and litigation. Furthermore, the study recommends the establishment of specialized forensic accounting units within courts. It also finds that applying forensic accounting methods, stages, and procedures significantly increases the likelihood of detecting creative accounting practices and improves the reliability of financial reports.