rss_2.0Journal of Forensic Accounting Profession FeedSciendo RSS Feed for Journal of Forensic Accounting Professionhttps://sciendo.com/journal/JFAPhttps://www.sciendo.comJournal of Forensic Accounting Profession Feedhttps://sciendo-parsed.s3.eu-central-1.amazonaws.com/66a9d590244b564e1ba037ea/cover-image.jpghttps://sciendo.com/journal/JFAP140216Catalysts of Sustainability: The Transformative Role of Small and Medium Enterprises in ESG Practices of EU Candidate Countrieshttps://sciendo.com/article/10.2478/jfap-2024-0008<abstract><title style='display:none'>Abstract</title> <p>Environmental, Social, and Governance (ESG) criteria have emerged as pivotal benchmarks for assessing corporate sustainability and ethical business practices. This study investigates the transformative role of small and medium-sized enterprises (SMEs) in advancing ESG practices, with a particular emphasis on countries aspiring to European Union membership. Employing a quantitative methodology through a survey questionnaire the research analyzes the challenges and opportunities associated with ESG implementation. Data collected from 51 SMEs across the Balkan region reveal substantial benefits of ESG integration, notably in enhancing operational efficiency and market reputation, with transparency and strategic planning identified as critical drivers. However, SMEs face significant obstacles such as complex regulatory frameworks, limited access to financing, and inadequate training resources.</p> <p>The article proposes targeted strategies to strengthen SME capacity, emphasizing investment in education, technological solutions, and partnerships with key stakeholders. By adopting ESG standards, SMEs not only contribute to sustainable development but also bolster their competitiveness and resilience in a rapidly evolving global market.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00082025-01-20T00:00:00.000+00:00The Impact of Various Factors on the Effectiveness of Internal Audit in the Public Sector: The Case of Bosnia and Herzegovinahttps://sciendo.com/article/10.2478/jfap-2024-0006<abstract><title style='display:none'>Abstract</title> <p>The paper focuses on analyzing key factors influencing the effectiveness of internal audit in the public sector of Bosnia and Herzegovina (BiH). Through multiple regression analysis (Ordinary Least Squares-OLS), the impact of five independent variables (competence of internal auditors, size of internal audit department, relationship between internal and external auditors, management support for internal audit, and independence of internal auditors), two control variables (organization’s sector and total number of employees in the organization), on the dependent variable (effectiveness of internal audit) was measured.</p> <p>Research results indicate that a significant portion (.2 = 45.00%, Adj .2 = 40.90%) of the variability in the effectiveness of internal audit can be explained by the variability of the five independent variables in the model. The largest positive impact on the effectiveness of internal audit is attributed to the size of the internal audit department and the independence of internal auditors. Conversely, management support for internal audit had the least impact, which contradicts our predictions and the results of previous research. The limited impact of management support on the effectiveness of internal audit in the public sector of BiH may stem from a lack of understanding regarding the role and importance of internal audit, as well as from perceiving it as merely a formal legal requirement without substantial value.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00062025-01-20T00:00:00.000+00:00Impact of Marketing Research on Business Performance: A Case Study of Firms in Eket Metropolis, Akwa Ibom Statehttps://sciendo.com/article/10.2478/jfap-2024-0009<abstract><title style='display:none'>Abstract</title> <p>This study examined the implications of marketing research on the management of business performance. Marketing research is one of the major bases for the formulation of marketing strategy, which aids in better decision making by providing additional information that is relative to a particular marketing problem. Business organizations must therefore be based on fact and not intuition, to put in appropriate strategies to avert such marketing problems. Five marketing firms in Eket metropolis, Akwa Ibom State were chosen for this study, comprising 20 respondents from each of the firms totaling 100 respondents. The major research instruments were questionnaires, relevant textbooks, and journals. The data collected were analyzed using simple percentages and chi-square (x<sup>2</sup>) statistics to test the hypotheses. The results indicated, among others, that effective marketing research has a significant relationship with the performance and success of the firms under study.</p> <p>To this end, the study recommended among others: frequent conduct of articulate and well-organized marketing research, employment of professional marketing researchers, or training up staff purely on marketing research from time to time and motivating them so as to bridge the gap between the producer and the consumer.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00092025-01-20T00:00:00.000+00:00Does Artificial Intelligence Represent a Threat to the Accounting Profession?https://sciendo.com/article/10.2478/jfap-2024-0010<abstract><title style='display:none'>Abstract</title> <p>This paper investigates the impact of artificial intelligence (hereinafter AI) on the accounting profession, emphasizing the need to adapt educational programs and business practices due to the emergence and development of AI technologies. A qualitative method with the help of a semi-structured interview was used to collect primary data. The participants were professionals in the accounting and information technology field who have the relevant knowledge and experience to consider this topic.</p> <p>The research aimed to discover the main problems that may arise when implementing artificial intelligence in the accounting profession, to determine how AI technologies affect the quality of financial reports, and whether education reform in accounting is needed due to the emergence of AI technologies. The results of the conducted research showed that AI technology will find its application in the accounting profession, that the quality of the financial report generated based on AI technology depends on the quality of the entered data, i.e. that the control function of accountants is of crucial importance, and that it is necessary to reform curricula in the context of exploiting the benefits of AI technologies.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00102025-01-20T00:00:00.000+00:00Auditors’ Evolving Responsibilities and the Rising Costs of Professional Negligence: A Comprehensive Examinationhttps://sciendo.com/article/10.2478/jfap-2024-0007<abstract><title style='display:none'>Abstract</title> <p>In recent times, professional negligence has taken centre stage in the news. The inability of auditors to uncover fraud in their clients’ financial records has become a topic of intense debate among industry professionals and regulators, with no clear consensus reached thus far.</p> <p>This paper employs a qualitative research approach to delve into the consequences of professional negligence and why auditors will continue to face the consequences of their failure to detect fraud in their clients’ financial records. Our research findings indicate that auditors will continue to bear the brunt of professional negligence until there is a fundamental shift in their mandate, prompting them to assume a more proactive role in detecting fraud within financial statements. The repercussions of professional negligence extend beyond financial losses, encompassing intangible costs that severely tarnish the reputation of the auditing profession.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00072025-01-20T00:00:00.000+00:00Impact of size of banks and insurance companies on their profitability in Bosnia and Herzegovinahttps://sciendo.com/article/10.2478/jfap-2024-0003<abstract> <title style='display:none'>Abstract</title> <p>In this paper, we investigate the determinants of bank profitability by examining endogenous factors used to measure the size of a financial institution. We underscore the significance of bank employees in embodying institutional values and playing a pivotal role in sales channels, as well as the impact of technological integration on customer expectations and workforce dynamics.</p> <p>Utilizing a dataset from regulatory agencies, which includes information from 47 banks and insurance companies in Bosnia and Herzegovina for the year 2021, the study explores the relationship between the independent variables which include the volume of total assets and the number of employees, and the dependent variable for profitability. By calculating Return on Equity (ROE) and employing a multiple linear regression model, the study finds that a statistically significant relation between independent variables and the dependent variable does not exist. Despite this, the research highlights the need for further investigation, particularly considering the differentiation between banks and insurance companies, the potential impact of outliers, and the broader economic context of the year studied. The findings suggest that a more refined model, possibly incorporating panel data, could provide clearer insights into the profitability determinants of financial institutions in Bosnia and Herzegovina.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00032024-07-31T00:00:00.000+00:00Internal Audit in the function of preventing corruptive activities in the public sector of the Federation of Bosnia and Herzegovinahttps://sciendo.com/article/10.2478/jfap-2024-0002<abstract> <title style='display:none'>Abstract</title> <p>The public sector of the Federation of Bosnia and Herzegovina (FBiH) from the aspect of complexity and comprehensiveness, includes all levels of government established within the state government, public companies, and the insurance system including: pension, health and social. The importance of performing duties and obligations in a transparent manner, and the possibility of detecting warning factors for corrupt activity are especially important in the public sector.</p> <p>Corrupt activities at all levels of the state structure of Bosnia and Herzegovina (BiH), as well as fraudulent behaviour and abuses within it, are precisely the consequences of the complexity of the state system, and the impossibility of efficient and rational use of public funds. Adequately organized, in accordance with the law, and accepted as such by employees within a certain public sector organization, internal auditing contributes to more efficient operations and prevention of corrupt practices. The aim of the subject research is to look at the process of functioning of the internal audit in the public sector of FBiH in the field of prevention of corrupt activities. The results of the research indicate the non-functioning and non-establishment of the internal audit in the manner specified by law, as well as the inadequate implementation of its recommendations, degrading and derogating its role, importance and contribution in the prevention of corrupt activities in the public sector of FBiH.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00022024-07-31T00:00:00.000+00:00Innovative approaches in forensic accounting: The role of data analyticshttps://sciendo.com/article/10.2478/jfap-2024-0001<abstract> <title style='display:none'>Abstract</title> <p>The integration of data analytics into forensic accounting has revolutionized the detection and prevention of financial fraud. This paper conducts a comprehensive analysis of recent advancements in this field, highlighting the application of machine learning, data mining, and big data techniques in identifying fraudulent activities. By reviewing the latest research and examining case studies, we demonstrate the enhanced accuracy and efficiency these technologies offer over traditional methods. The findings suggest that financial institutions should adopt these advanced tools to mitigate fraud risks and improve overall financial security.</p> <p>The paper also explores future research directions, emphasizing the need for developing hybrid models and real-time detection systems to further enhance fraud detection capabilities.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00012024-07-31T00:00:00.000+00:00Fınancıal sustaınabılıty and rısk in antı-agıng startupshttps://sciendo.com/article/10.2478/jfap-2024-0005<abstract> <title style='display:none'>Abstract</title> <p>The anti-aging industry has experienced rapid growth driven by significant advancements in biotechnology, consumer interest in longevity, and substantial investment. This study explores the financial sustainability and risk management practices of anti-aging startups, highlighting key challenges and opportunities. Through case studies, the research examines funding strategies, regulatory hurdles, and market dynamics. Successful startups demonstrate robust financial planning, strategic partnerships, and innovative technological approaches, while unsuccessful ventures reveal the high risks associated with clinical development. The findings underscore the importance of comprehensive risk management and strategic financial planning in achieving long-term sustainability. This research provides valuable insights for entrepreneurs, investors, and policymakers aiming to navigate the complex landscape of the anti-aging market.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00052024-07-31T00:00:00.000+00:00The role of IT capabilities and managerial support in advancing digital transformation and internal audit: a literature reviewhttps://sciendo.com/article/10.2478/jfap-2024-0004<abstract> <title style='display:none'>Abstract</title> <p>This literature review focuses on concepts related to the role of information technology (IT) capabilities and managerial support in the context of advancing digital transformation and improving internal audit in the institutional environment. Through the synthesis of relevant academic sources, it is investigated how IT capacities and strategic management support influence the organizational ability to adapt to digital innovations. Special emphasis is placed on the complex dynamics that shape the interactions between these factors and their impact on institutional responsibility and performance.</p> <p>The results of the literature review illustrate the key mechanisms that support the digital transformation process, including the integration of technological systems, the development of digital competencies, and the role of management in providing resources and support. Further, a deeper understanding of the complexity of these interactions serves as a basis for further research in the field of digital transformation management and internal audit in an institutional context.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2024-00042024-07-31T00:00:00.000+00:00The Role of Forensic Accountants in Fraud and Corruption Cases and Its Impact on Business Development: The Case of Saudi Arabiahttps://sciendo.com/article/10.2478/jfap-2023-0007<abstract> <title style='display:none'>Abstract</title> <p>The purpose of this study is to investigate the role of forensic accountants in different fraud and corruption cases and its impact on business development. Drawing on the Fraud Triangle Theory by Cressey (1953) and the theoretical concept of capability by Wolfe and Harmanson (2004) this study focuses on the significance of ‘opportunity’, ‘pressure’, ‘rationalization’ and ‘capability’ for forensic accountants in addressing fraud and corruption issues and evaluates the influence of their findings on business development. The study relied on a mixed method design to conduct the research.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00072024-01-26T00:00:00.000+00:00Qualitative insight into the internet frauds within` the context of consumers in Bosnia and Herzegovinahttps://sciendo.com/article/10.2478/jfap-2023-0006<abstract> <title style='display:none'>Abstract</title> <p>Online shopping helps consumers search for information about products and services, makes it easier to compare prices and product features, and enables a quick and easy exchange of positive and negative experiences. However, through numerous positive advantages, there is inevitably a constant increase in the negative consequences of online shopping, especially from the consumer's perspective.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00062024-01-26T00:00:00.000+00:00Going concern assessment: a literature reviewhttps://sciendo.com/article/10.2478/jfap-2023-0009<abstract> <title style='display:none'>Abstract</title> <p>This paper addresses a underlying assumption of financial statements: going concern assumption. The going concern assumption constitutes a foundational premise presuming that the entity will conduct its operations in the forthcoming period (at least 12 months) without significant risk of business interruption. The primary objective of financial reporting is to provide information regarding the entity's financial position and performance to diverse users. Management is obligated to apprise users, and auditors are tasked with scrutinizing the assertion that the entity will continue its operations for a period exceeding 12 months. This paper meticulously examines the regulatory framework grounded in International Financial Reporting Standards and International Standards on Auditing. It particularly scrutinizes the role and significance of auditors in assessing the going concern assumption, encompassing an analysis of factors influencing the auditor's opinion on the going concern assumption and addressing criticisms directed at auditors. Furthermore, the paper explores past experiences in developing models for evaluating going concern assumptions, potentially aiding forensic accountants in uncovering irregularities in financial statements, given the correlation between a heightened bankruptcy risk and fraudulent activities.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00092024-01-26T00:00:00.000+00:00Bridging the Gap: Integrating Forensic Accounting Skillsets for Enhanced Audit Quality in the Post-Pandemic Erahttps://sciendo.com/article/10.2478/jfap-2023-0010<abstract> <title style='display:none'>Abstract</title> <p>In response to recent high-profile accounting scandals, the auditing sector is undergoing a critical review of practices. Despite regulatory changes and technological advancements, doubts persist about auditors' effectiveness in identifying financial statement fraud. This article advocates for a paradigm shift in auditors' skillsets, especially amid challenges posed by remote and hybrid work scenarios.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00102024-01-26T00:00:00.000+00:00Position of a forensic accountant in the Federation of Bosnia and Herzegovina finance sectorhttps://sciendo.com/article/10.2478/jfap-2023-0008<abstract> <title style='display:none'>Abstract</title> <p>The paper aims to identify the possibility of positioning the profession of forensic accountant in the financial sector of the Federation of Bosnia and Herzegovina (hereinafter FBiH). To answer the question of how the profession of forensic accountant could be introduced into the financial sector, qualitative research was conducted using the method of interviews with respondents who have many years of experience in the financial sector of FBiH.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00082024-01-26T00:00:00.000+00:00Role of Digital Forensics in Combating Financial Crimes in the Computer Erahttps://sciendo.com/article/10.2478/jfap-2023-0003<abstract> <title style='display:none'>Abstract</title> <p>Information and communication technologies (ICT) have changed every area of our lives. Cyberspace-related areas have reflected these shifts. Cyberspace has an undeniable positive impact on information, trade, industry, and communication. On the other hand, cybercrime is a dark side of the Internet that degrades its peaceful use. Any illegal activity carried out by or via cyberspace and its electronic environment is characterized as cybercrime. Unlike traditional crimes, cybercrimes present a real dilemma because the identities of criminals may be hidden in the virtual domain. Digital forensics has emerged to formulate possible ways for cybercrime investigation and analysis process. In this paper, we deplore the idea of digital forensics in the context of cybercrimes. An investigation of the positive impact of digital forensics in combating cybercrimes is discussed. In today’s world of computers, any information can be made available within a few clicks for different endeavors. The information may be tampered with by changing the statistical properties and can be further used for criminal activities.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00032023-07-16T00:00:00.000+00:00Forensic Accounting: Time for a Unified Global Approachhttps://sciendo.com/article/10.2478/jfap-2023-0002<abstract> <title style='display:none'>Abstract</title> <p>Forensic accountants need to respond to the ever-growing global threat of financial crime and the continuing need for expertise within the area of financial dispute work. The global development of forensic accounting as a discipline has been ad hoc, and this paper will focus on the two most developed nations regarding the expansion of forensic accounting i.e., the USA and the UK. From this study two major themes have emerged: that of the status of the regulation and education of forensic accountants within the USA and the UK and we ultimately call for radical reform in both areas. Currently there is no recognised regulatory body which encompasses all aspects of a forensic accountant’s role, thus there is no standard code of ethics which practicing forensic accountants are obliged to follow. In addition, the absence of a recognised educational route to becoming a forensic accountant has resulted in a lack of awareness of the role as a potential career path and makes succession planning within forensic accounting firms problematic.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00022023-07-16T00:00:00.000+00:00Exploring the Current State of Forensic Accounting in Saudi Arabia and Possible Ways of Elevating It to Assist the Government Fighting Corruptionhttps://sciendo.com/article/10.2478/jfap-2023-0001<abstract> <title style='display:none'>Abstract</title> <p>Corruption occurs when there is a misuse of current resources to maximize personal benefits at the expense of other parties, causing financial problems and preventing the development of emerging economies.</p> <p>Forensic accounting services utilize financial data to solve legal disputes. Saudi Arabia’s government does not tolerate obstacles that impede the realization of its ambitious Vision 2030, a long-term plan for transforming society and reforming the economy. The war on corruption has been observed in Saudi Arabian domestic policy. Whether the forensic accounting profession and the readiness of accountants qualified to conduct forensic inquiries and investigations are effectively accompanied by the government’s fight is probed. This study explores the current state of forensic accounting in Saudi Arabia. Potential means of employing such status to make Saudi Vision 2030 a reality to combat corruption and the ability of forensic accounting to ease the government’s fight are also investigated. A questionnaire was conducted on 181 participants comprising accountants, auditors, judges, accountancy academics, Oversight and Anti-Corruption Authority employees, and any supervisory body in Saudi Arabia. The results show that 46% of the surveyed participants were unaware of forensic accounting, implying that despite its significance and demand for its services, forensic accounting is undersupplied in Saudi Arabia. Thus, it is inferred that the current state of forensic accounting is below the required level. To address this issue, forensic accounting should be incorporated into accounting curricula, accountants should join specialized scholarship programs and seek to be certified forensic accountants. Policy-makers must develop charter institutions and related forensic accounting standards.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00012023-07-16T00:00:00.000+00:00Brand risk as the neglected phenomenon: an insight into publishing trendshttps://sciendo.com/article/10.2478/jfap-2023-0005<abstract> <title style='display:none'>Abstract</title> <p>In today’s increasingly connected and digitized business environment, brands face numerous challenges that can significantly affect their reputation and value, and one of the key challenges that many organizations across the world face is brand risk. Due to its role in many aspects of business, the main purpose of this paper is to revitalize this phenomenon by exploring it through bibliometric indicators, publishing trends and analyzing it through the current literature. In this sense, the paper adresses two research questions, both related to revealing the scope and nature of brand risk as the construct of a great relevance in many scientific fields, whereas a special attention has been given to the analysis of the most cited papers on this matter. The findings show that the construct although presented two decades ago is still in infancy phase, and quite neglected in the current body of knowledge.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00052023-07-16T00:00:00.000+00:00Analysis of special credit risk in the function of real financial reportinghttps://sciendo.com/article/10.2478/jfap-2023-0004<abstract> <title style='display:none'>Abstract</title> <p>Banks and banking business are exposed to the influence of numerous risks, of which the importance of credit risk management stands out, because credit risk is the only risk that banks are obliged to measure, record in accounting and report. Banks monitor credit risk through the segmentation of the credit portfolio according to the level of risk. This paper is focused on research related to the management of the riskiest category of the credit portfolio, for which we will use the term special credit risk (SCR) in this paper.</p> </abstract>ARTICLEtruehttps://sciendo.com/article/10.2478/jfap-2023-00042023-07-16T00:00:00.000+00:00en-us-1