The role of forensic accounting in preventing and detecting financial reporting fraud

5^th International Conference on Forensic Research & Technology

October 31-November 02, 2016 San Francisco, USA

Zabihollah Rezaee

University of Memphis, USA

Posters & Accepted Abstracts: J Forensic Res

Abstract :

Organizations of all types and sizes are susceptible to employee fraud including embezzlements, thefts and misappropriations of assets as well as Financial Reporting Fraud (FRF) of disclosing a rosy picture of the organization. The 2016 Association of Certified Fraud Examiners (ACFE) Report to the Nations reveals that the â�?�?typical organization loses 5% of revenues in a given year as a result of fraud, which exceeded $6.3 billion, with an average loss per case of $2.7 millionâ�?. The existence and persistence of FRF has undetermined the integrity and reliability of public financial information, eroded investor confidence, and has had detrimental effects on the safety, soundness and efficiency of financial markets worldwide. The very viability of the business as well as the safety and efficiency of financial markets in general are threatened when the existence and persistence of FRF go undetected. Financial reporting fraud can be detected with effective corporate governance, which includes effective antifraud policies and programs by the board of directors, management, and auditors. Effective antifraud programs of focusing on fraud awareness and education in the workplace environment, whistle-blowing policies and procedures, adequate and effective internal controls and the use of forensic accounting techniques can significantly reduce FRF.

Biography :

Email: zrezaee@memphis.edu