Presenting a Model for Reducing the Probability of Fraud and Financial Crimes

Mohammad Reza  Rahbari Karim Tehrani; Mohammad Reza Pourali; Mahmoud  Samadi Largani

Authors

Mohammad Reza Rahbari Karim Tehrani Department of Accounting, To.C., Islamic Azad University, Tonekabon, Iran Author https://orcid.org/0000-0002-7737-8314
Mohammad Reza Pourali Department of Accounting, Cha.C., Islamic Azad University, Chalous, Iran https://orcid.org/0000-0003-1871-9286
Mahmoud Samadi Largani Department of Accounting, To.C., Islamic Azad University, Tonekabon, Iran Author https://orcid.org/0000-0003-4396-4478

Keywords:

Forensic accounting tools, fraud, forensic accounting, financial crimes

Abstract

Today, with the increasing complexity of fraud and financial crimes, the use of traditional approaches for detection and prevention is no longer sufficient, and there is a need for an integrated and coherent model capable of reducing different levels of fraud and restoring public trust in the economy and financial institutions. Therefore, the present study was conducted with the aim of presenting a model for reducing the probability of fraud and financial crimes. The required data were collected through semi-structured interviews with 15 expert forensic accountants using the snowball sampling method. In this study, an Interpretive Structural Modeling (ISM) approach was employed to design a proposed model. Based on the interpretive structural analysis, the exploratory research model consisted of 19 factors. The results indicated that forensic accounting, through three categories of tools including legal tools, accounting tools, and other tools, contributes to reducing the occurrence of fraud and financial crimes. The accounting tools of forensic accounting included components such as data analysis, accounting standards, auditing standards, financial ratio analysis, Benford analysis, and cloud-based tools. The legal tools of forensic accounting included components such as criminal and penal laws, criminology, legal monitoring of individuals’ accounts, interviewing and interrogation, forensic analysis, and legal documentation. Other forensic accounting tools included components such as information technology, employee monitoring tools, and fraud psychology.

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