rss_2.0Sciendo RSS Feed for Journal of Forensic Accounting Professionhttps://sciendo.com/journal/JFAPhttps://www.sciendo.comhttps://sciendo-parsed-data-feed.s3.eu-central-1.amazonaws.com/63be5c6cba938b7823b4a1b6/cover-image.jpghttps://sciendo.com/journal/JFAP140216https://sciendo.com/article/10.2478/jfap-2022-0008<abstract> <title style='display:none'>Abstract</title> <p>COVID-19 is behind us, that is, it no longer poses a direct threat to the normal functioning of higher education. Nevertheless, the answers to the challenges in teaching, brought with it by COVID-19, have become an integral part of the curriculum of higher education institutions. When it comes to online teaching in accounting courses, additional creativity was expected from the teaching staff to successfully transfer knowledge. This was a particularly difficult challenge for those institutions and teaching staff who had not previously applied online teaching and online tools in the teaching process.</p> <p>The research was conducted on students of the Faculty of Economics of the University of Mostar (EF Mostar, FEM) and students of the Faculty of Economics of the University of Split (EF Split, FES), who took one or more accounting courses in the pandemic academic year 2020/2021 and partly in the academic year 2021/2022. The paper tried to offer answers to the questions about the degree of student satisfaction with online teaching, what are the advantages and disadvantages of this kind of teaching, and in which aspects there is room for improvement when considering the teaching of accounting courses in the context of online teaching.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00082023-01-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0007<abstract> <title style='display:none'>Abstract</title> <p>Aware of the danger that the risk of money laundering and terroist financing has on the whole society, and with the aim of increasing awareness of the effective fight against the same risk in Bosnia and Herzegovina (BiH), the paper deals with the research of mechanisms for managing the risk of money laundering and terrorist financing activities.</p> <p>The research of this work will be focused on determining the degree of application of the requirements of the legislative and institutional framework for the fight against money laundering and terrorist financing by those obliged to apply law. Also, the paper points to the cooperation of state institutions with entities of the BiH, and examines the degree of compliance of the BiH system with international standards related to the fight against money laundering and terrorist financing. In order to assess the management of this risk as efficiently as possible, the paper will cover financial and non-financial money transfer systems, and indicate the level of measures taken in this fight by the competent institutions. For the purposes of research in the paper, the data published by the competent institutions through their reports/publications will be used, with a special focus on the data published by the Banking Agency of the Federation of Bosnia and Herzegovina as the legal entity that reported the largest number of suspicious transactions in the analyzed period. The results of the research indicate that there is no concern regarding the management of the risks of money laundering and terrorist financing in BiH, and that the risk can be quantified in the category of moderate risk.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00072023-01-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0009<abstract> <title style='display:none'>Abstract</title> <p>This paper investigated the opportunities for public sector improvement by digitalization Financial Management and Control (FMC) system in the Western Balkans (WB) countries. Optimizing business processes within public sector through the digitalization of the FMC system offers opportunities for public sector improvement.</p> <p>The idea is to analyze the existing legal solutions on FMC system in the WB countries and evaluate the current level of digitalization of the system to find the abilities for improvement FMC. The data obtained through an interview with management persons in the Ministry of Finance of the WB Countries and key experts who worked on behalf of the EU as expert consultants on EU-funded projects. Also, we use secondary data collected by exploring literature and OECD reports. Since the database is limited, we use descriptive statistics to analyze the data and the case-study method. The digitalization of the entire system presented only at the entity and state level in Bosnia and Herzegovina. The research showed that the development of a quality FMC system can be enabled by the digitalization of the entire system. The main contribution of this paper is its focus on digitalization of FMC system, since there is limited research paper on this subject.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00092023-01-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0006<abstract> <title style='display:none'>Abstract</title> <p>Considering the burning problem of corruption and non-transparency of public enterprises in the Federation of Bosnia and Herzegovina (FBiH), the paper aims to investigate whether the Beneish M-score model can be used to predict inaccurate financial statements. Where, the cause of inaccurate financial statements are intentional or unintentional errors.</p> <p>On a sample of 200 financial statements of public enterprises and related audit reports issued by the Audit Office of the Institutions in FBiH, we made a link between the Beneish M score model with its partial indicators (DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, TATA) and four types of opinions: positive, opinion with distraction, negative and refraining from giving opinions. The research was conducted using descriptive statistics and an artificial neural network with the “scaled conjugate gradient backpropagation (trainscg)” algorithm for pattern recognition and classification. The research results show that it is possible on the basis of 8 partial indicators (DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, TATA) i.e. 24 balance sheet position for their calculation, predict the auditor’s opinion on the quality of financial statements of public companies with an accuracy ranging between 98 and 100% in repeated procedures. The results of the research have their practical usefulness and can serve to researchers, creditors, customers, suppliers and state auditors in planning resources and priorities for performing financial audits at public companies in the FBiH.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00062023-01-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0010<abstract> <title style='display:none'>Abstract</title> <p>This paper is dealing with one of the major challenges confronting the development of forensic accounting primarily legislation to combat fraudulent practices in the Kingdom of Saudi Arabia. The focus of our research is corporate and practice in the finance and banking sectors, since business operations are becoming more complex, especially with the recent developments in information and communication technology and as a consequence of the global pandemics of Covid-19 and the looming economic crisis. This has changed the nature of corporate fraud and fraudulent practices. This study has a primary goal to investigate the theoretical aspects of the integration of forensic accounting and corporate law and related regulation as tools for combating corporate and cyber fraud. In that sense, forensic accounting with a more than strong backing in the legislative aspects is strongly geared towards the minimization of the cost of employed capacities for forensic accounting activities to mitigate and eventually eliminate cyber fraud.</p> <p>The study also explores the effect of integrating forensic accounting and management control systems on banks’ reputations and the huge loss of revenue resulting from cyber fraud. The study develops a conceptual model to show the relationship between forensic accounting, the management control system, and cyber fraud in the banking sector. A legal context analysis methodological research approach was employed to express the relationship amongst the variables considered in this study to reduce corporate and public sector fraud, minimize cost and improve the reputation of corporate and public government sectors. Preliminary research in the formulation of clear conclusions gives an idea of the feasibility of combining the components of forensic accounting, corporate and related laws and regulations, management control systems, and corporate reputation to combat business fraud. This was validated in some general conclusions which resulted in an acceptable, logical, and feasible model of forensic accounting solidly founded in corporate law and structure. Some of the findings are that the speed and ease of convergence process symbiotic integration of forensic accounting and corporate law is the best solution that is feasible and suitable for achieving the set objectives. Our initial conclusion and recommendation are that the government of the Kingdom of Saudi Arabia should introduce legislation that would ensure strict corporate disclosure standards, requirements, and norms as this would defend companies’ critical assets as well as its anti-fraud programs.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00102023-01-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0005<abstract> <title style='display:none'>Abstract</title> <p>Although forensic accounting is a relatively young scientific discipline, it will certainly be one of the most sought after areas in the coming period, and it is important that activities be undertaken for its development and improvement as soon as possible.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00052022-07-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0002<abstract> <title style='display:none'>Abstract</title> <p>The aim of this paper is to approximate the current state of risk management in irregularities and fraud in public sector organizations. Current regulations in the field of financial management and control in the public sector in the Federation of Bosnia and Herzegovina define the concepts of irregularities and fraud within the system of internal controls in public sector organizations, the responsibility of management and employees for reports and actions. The paper will present data from official consolidated reports on the functioning of the financial management and control system, which indicate that the management of risks of irregularities and fraud and the implementation of actions to prevent and eliminate irregularities and fraud by users are still insufficiently developed. The possible causes of such a situation will be analyzed, and possible solutions will be considered: elaboration of legal enactments and concretization of individual roles in taking actions against irregularities and fraud.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00022022-07-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0004<abstract> <title style='display:none'>Abstract</title> <p>This paper is dealing with the first pioneering steps to introduce continuous fraud risk assessment tools and techniques in the medium size audit clients in Montenegro. Based on the available experience and audit evidence data gathered in the period 2019 to 2021 statutory audits of medium size enterprise the clients were open and perceptive to adopt simple techniques of the continuous fraud assessment by applying the MS Excel templates. The beforementioned approach is improving the quality of internal control, lowering the levels of asset’s misappropriation, improving the quality of financial and non-financial reporting, regulatory compliance and significantly preventing illegal acts within the enterprise.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00042022-07-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0003<abstract> <title style='display:none'>Abstract</title> <p>Public procurement system, which is being implemented in Bosnia and Herzegovina, is an integrated system that includes a large number of actors. This system is described, including the identified competencies and responsibilities of all participants, by law and bylaws. And, corruption is one of the social phenomena whose definitions change in time and space. Many behaviors that are considered corruption today have been an integral part of regular behavior in the past.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00032022-07-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2022-0001<abstract> <title style='display:none'>Abstract</title> <p>Fraud in accounting, as well as falsification of financial statements, has a long history, and in recent years their scale has been growing and with much more serious consequences. Decisions made by investors and other users of financial statements based on erroneous financial information cause enormous damage to users of financial information, but also to the general public. Many major financial frauds are only detected when companies reach the point of financial collapse, in a situation where it is difficult to do something to repair major damages.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2022-00012022-07-11T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0008<abstract> <title style='display:none'>Abstract</title> <p>Forensic accounting as a profession plays a major role in preventing and detecting frauds and almost in all areas of business there is a need for the services of forensic accountants. In modern conditions, when the whole world is struggling with the COVID-19 pandemic and the consequences it brings, an increase in the number of frauds is expected, which will result in an increase of demand for specially trained experts in the area of fraud prevention and detection. In this context, this paper emphasizes the role of forensic accountant in the fight against fraud and presents the occupational standard and qualification standard developed for this profession in the Republic of Croatia. The occupational standard identifies key jobs within the profession as well as the competences that a person needs to possess to successfully perform jobs within the profession.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00082022-01-18T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0007<abstract> <title style='display:none'>Abstract</title> <p>Fraud has existed throughout history. Yet, it is estimated that today's occurrence has a huge impact on global revenues, highlighting the importance of fraud examination and forensic accounting. Although the roles of the two disciplines appear to be similar (e.g. litigation support), they differ significantly in their objectives, with the goal of fraud auditing being to determine whether fraud has occurred and, if so, who is responsible. Forensic accounting has the additional objective of assessing the financial consequences and determining whether the allegations have a factual basis by analyzing the financial evidence.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00072022-01-18T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0006<abstract> <title style='display:none'>Abstract</title> <p>The primary purpose of this work is to provide an overview and comparative analysis of various Information System Audit Quality measures, as well as to test the validity of the chosen measurement scale empirically. In this regard, a thorough literature study was undertaken, followed by primary empirical research, and the reliability and validity of the measurement scale were tested. Based on the identified papers, a questionnaire was created and evaluated by a panel of experts. Following that, data was collected from respondents who were either managers inside the organizational unit responsible for information technology or those designated as adequate by the heads of IT departments.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00062022-01-18T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0009<abstract> <title style='display:none'>Abstract</title> <p>Large corporate scandals in the US and Europe, from the early 21^st century, such as Enron, Parmalat, WorldCom and many others, have seriously shaken public confidence in the auditors’ work. Consequently, many countries have recognized the need for introduce the forensic accounting as a more advanced and reliable form of protection against manipulative financial reporting by companies, and have completed the accounting profession with the forensic accountant title, as an active fighter against various types of frauds in companies.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00092022-01-18T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0010<abstract> <title style='display:none'>Abstract</title> <p>The aim of this paper is to shed light on the two most common examples of financial fraud, which occur in most businesses in Bosnia and Herzegovina. The causes and consequences of the mentioned financial frauds will be analyzed, as well as the reasons why they were not procedurally discovered in time. The first example is related to the inflow of money from abroad, which creates doubts about merits, while the second example is related to the presentation of operating losses and reduced tax liabilities of related legal entities. Each of the examples will be analyzed in detail in terms of the causes of financial fraud, the manner of their implementation, the relevant accounting records, and finally the manner of their detection.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00102022-01-18T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0003<abstract><title style='display:none'>Abstract</title><p>We are witnessing an increasing frequency of illegal actions and fraud in the business of legal entities, which directly reflects on the quality of information presented in financial statements. Internal audit does not primarily deal with the audit of financial statements, but through verifying the application of accounting policies and procedures it helps to gain reasonable assurance that the financial statements are reliable and that they are presented fairly. The role of internal audit in the fraud detection process is reflected in the fraud risk assessment in the internal audit planning process, and through performing work engagements to detecting them. In this paper, we will present risk assessment techniques, which the internal auditor can apply in quantitative and qualitative assessment of fraud risk, and in identifying priority areas/audit processes. The aim of this paper is to point out the importance of the role of internal audit, through the application of techniques, tools and prescribed responsibilities for risk assessment, in the process of detecting fraud in companies that cause incalculable damage on a daily basis.</p></abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00032021-07-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0002<abstract><title style='display:none'>Abstract</title><p>This study explores revenue recognition and reporting expenses relevant to the stage of completion of the contract agreements. Literature suggests that the taxation effects financial reporting, realization of capital gains as well as revenue recognition. We argue that construction firms make use of these estimates to postpone revenue and value added tax recognition. The analysis grounds on the assumption that the value added tax effects timely recognition of revenues from construction agreements, where managers are incentivized to underestimating stage of completion and suppress recognition of gross earnings to better align emerging of the value tax related liability with contracted and expected inflows of cash. Results show that the revenue recognition is positively associated with reported income before tax and cost of material as a direct expense that can be allocated to the execution of construction agreements. These findings build baseline for future research that assesses effects of newly adopted standard IFRS 15 on real earnings management practice in construction industry of Bosnia and Herzegovina.</p></abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00022021-07-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0001<abstract><title style='display:none'>Abstract</title><p>The field of business ethics has received considerable attention from the corporate, academic, and public sectors over the past several decades. A key purpose of this paper is to examine existing research and knowledge creation in the field of business ethics. The paper includes systematic literature review using bibliomteric analysis which covers 50 articles, published in 11 peer-reviewed journals from 1994 to 2019, examining the methodological and theoretical approaches, as well as the main research focus areas. We found significant amount of studies concerning business ethics appeared mostly in business ethics journals. We identified seven areas of research covered by numerous authors in the observed period, of which three predominate: corporate culture; education; and national (cultural) approach to business ethics.</p></abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00012021-07-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0005<abstract><title style='display:none'>Abstract</title><p>Groups of companies have existed ever since the early 20^th century in the legal and economic terms. Over time, their concept was complemented, both in legislation and in the corporate practice. The issue of establishing and managing groups of companies is regulated by the corporate legislation. It particularly regulates the concept of the controlling and subsidiary company, company with mutual shares, holding, concern, association of companies and other forms of company associations. In terms of the legal definition, these are associated companies composed of two or more companies that are affiliated to each other as follows: by share in equity or membership interests (equity-related companies), by contract (contract-related companies); by equity and contract (mixed-related companies). These associated companies include a parent company and one or more subsidiary companies, which may be related by equity, contract or both. Besides the general concept of the associated companies, the author aims to point to the liability in a common activity as a group of companies. A particular attention is drawn to the legal treatment and obligations resulting from the International Accounting Standards and binding financial statements related to them.</p></abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00052021-07-17T00:00:00.000+00:00https://sciendo.com/article/10.2478/jfap-2021-0004<abstract><title style='display:none'>Abstract</title><p>Forensic accounting in scientific sense is the part of accounting that assumes the practice of scientific techniques and methods in conducting investigations and detecting criminal activities in financial statements, business statements and companies. One such tool in detecting anomalies in accounting records is the Benford’s Law, which gives the expected pattern of digit frequencies in numeric data sets according to their position in numbers. Because of this property, Benford’s law has become a significant forensic tool for the detection of anomalies, especially in financial business. One of the most important sources is account turnover data in the observed period, which has a debt and credit side. A classic way of analyzing these liabilities is to merge them and then look for a pattern of leading digits. In such approach, it is not possible to properly determine the source of anomalies, which are a guide to deeper analysis. For such purposes, a variant of the Hosmer-Lemeshow test is designed.</p></abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2021-00042021-07-17T00:00:00.000+00:00en-us-1