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Abstract
The main purpose of this study is to examine the level of awareness, perception,
and usage of forensic accounting among accounting educators at Holy Angel
University. A questionnaire survey was used to collect data from a total of 30
accountants. Research method is descriptive based on which the author has used
Likret 4 options-questionnaire to satisfy research objectives. The Pearson
coefficient of correlation is used to determine the relationships of variables. The
research results indicate a high level of awareness of forensic accounting among
the accountants which is correlated with their level of perceived effectiveness of
forensic accounting mechanisms to detect and prevent fraudulent activities. The
perception of the respondents is significantly related to the intent to use and actual
usage of forensic accounting. Recommendations to enhance the accountants
awareness perception and ultimately usage of forensic accounting are presented.
only as a legitimating device for the market economic system, but also as a form of
social language and certainly a business language, through which meanings and
are heavily exposed to fraud due to their influence on numerous crucial decisions that
affect various key social actors with far reaching implications. Corporate crises and
failures early in the twenty first century (e.g. Enron and WorldCom in the USA and HIH
confidence in financial reporting and raised serious concerns over the effectiveness of
recent years and increased the demand for forensic accounting practices as a means to
prevent, detect and respond to harm caused by fraud. They are tasked, among other
things, to put together the financial puzzle after the fallout of such scandals. They
rebuild entire financial systems, uncover financial statement fraud, trace funds, discover
hidden assets, and more. Carnes and Gierlasinki (2001) noted that inevitably,
accountants are being held to higher standards in their ability to understand and find
Whereas the problem of fraud is a global one, the rate and extent to which it is
perpetrated, particularly in the public sector, is quite high and alarming Morteza
forensic accounting and the results demonstrated the low extent of accountant's
investigation of the mechanisms of fraud prevention and detection, and their levels of
effectiveness, (2) identifying the major factors that hinder the application of forensic
It was further discovered that the most effective mechanisms, like the forensic
accounting techniques, are the least used in fraud prevention and detection. This was
shown by Dr. Biswas, Kiram Hieremath, and Shalini R. (2013) who claimed that due to
the complex and traditional judicial system, political compulsion etc., forensic
accountants are facing great challenge in employing their services. This implies that the
current mechanisms of fraud prevention and detection are not proactive in dealing with
search out fraud and theft. To put it in simple words, forensic accounting involves
The word forensic is a derivative of the Latin word forensis, meaning belonging
to the forum, which was ancient Romes site for public discussion and debate. Forensic
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means relating to the use of science or technology in the investigation and
(Shieds, 2009) reveals that Forensic Accounting history dates as far back as
3300-3500 BC. The scribes of ancient Egypt, who were the accountants of their day,
were involved in the prevention and detection of fraud. In 1817, the principles of
Forensic Accounting were put into practice in court, when an accountant was needed to
legal disputes and can assist in resolving disputes, even before they reach the courtroom.
If a dispute reaches the courtroom, the forensic accountant may testify as an expert
theft, and insurance fraud have occurred. Some of the work of the forensic accountant
may include recommending actions that can be taken to minimize future damages and
Fraud is a legal term that refers to the intentional misrepresentation of the truth in
knowingly falsifying accounting records, such as sales or cost records, in order to boost
the net income or sales figures. Accounting fraud is illegal and subjects the company
and the executives involved to civil lawsuits. (Koh, Arokisamy, Lee Ah Suat, 2009).
David (2005) argues that fraud is not a possibility but a probability. Albrecht,
(2005) argues that fraud is rarely seen. However, the symptoms of fraud are usually
observed.
Ramaswamy (2005) states that poor corporate governance and accounting failure
is one of the reasons why fraud cases emerge. This is because poor corporate governance
will lead to the ability of certain individual or a group of people with the same interest to
Fraud occurs at all levels of organizations. From underlings to owners, there are
Fraudulent Activities
organization, including:
Check forgery. Essentially, an employee takes checks and signs them in a name
that is now their own in order to cash them and make off with the funds before the
Inventory theft - This can include stealing supplies, equipment or merchandise from an
organization.
Theft of services. Some of the most common everyday examples of this type of
Bribery and corruption. This type of fraud is often associated with big
businesses, politics, and the blurry line that separates the two. Bribery involves paying
investors, shareholders, and any number of other audiences that might be put off or
scared away by the less-than-ideal financial health of an organization. The basic types of
Payoffs and kickbacks. These are situations in which employees accept cash or
The forensic accountants trace out fraud and criminal transactions from financial
records of the public and private organizations. They look for indisputable evidences.
External auditors find out the deliberate fraudulent statement only but the forensic
present complex financial information. Normally, accountants, especially CPAs, act like
watchdogs; a forensic accountant is trained to act more like an FBI Special Agent with a
CPA designation. Generally, they work for lawyers, police forces, insurance companies,
government regulatory bodies and agencies, banks, courts, and business community.
Their chief work is to testify civil and criminal court hearings by presenting evidences;
In the research conducted by Enofe, Okpako, Atube, (2013), they concluded that
the traditional auditing has limitation in detecting fraudulent practices which the forensic
accountants will effectively fill. They have the professional ability back up by law to
break into the organization system and examine the books, make discoveries and present
tests of
accounting records to investigate financial discrepancies. Kent, ( n.d.) lists and describes
Direct and indirect methods. The Direct Method is also called the Transaction
Method. When using the Direct Method of forensic accounting, the accountant examines
cancelled checks and invoices, contracts, agreements and public records and notices.
Cash T method and source and application of funds method. The Cash T
Method compares cash received to the amount of cash spent. It is used to determine if a
company or individual had understated income. Similarly, the Source and Application of
Funds Method examines the amount spent on lifestyle versus assets and investments.
Net worth method. The Net Worth Method calculates total assets and subtracts
worth. Net worth is compared to reported income over several periods. When there are
differences.
Bank deposit method. The Bank Deposit Method analyzes total deposits during
the year and compares it with total expenses. Transfers between accounts and checks
redeposited are subtracted from total deposits for the year to arrive at net deposits. Total
cash expenditures for the year are added to net deposits to arrive at total receipts for the
year. This number is compared to funds from known sources to determine the total funds
Jurado (2010) claims that the Philippines suffers from widespread corruption.
and patronage in a report by Australia and New Zealand Banking Group Limited,
commonly (ANZ).
Electronic fraud. These are Email scams and fake websites. A number of
Internet users have received emails claiming to be from financial institutions or other
legitimate organizations.
Job scams. Bogus overseas companies have been targeting unwitting victims to
act as money transfer agents in the sale of goods and services via methods such as job
gather your personal details in order to gain some sort of financial or other benefit,
often leaving the real owner of that identity with a large debt, a negative credit history,
Credit/debit card fraud. There are several ways that fraud can occur on your
strip is stolen when your card is swiped during a transaction. Thieves are then able to
reproduce fake cards using your stolen details. Once completed, these cards can be used
to make purchases using your account. Credit or debit card fraud can also occur when
your card is lost or stolen and used by a third party to purchase goods or to withdraw
cash from the card. Cards can also be intercepted in transit while being sent to you.
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Cheque fraud. Cheque fraud is the use of a cheque to obtain financial
advantage by:
cheque for payment knowing that insufficient funds are in the account to
Al Capones taxes. Al Capone was one of the most legendary gangsters of the
1920s and 1930s and he was able to avoid being caught by many of the best FBI agents
and detectives of the day. However, the famous gangster was finally brought down by an
Capone by uncovering his tax evasion. The IRS tracked all of the earnings that Capone
brought in from his illegal activities and then nailed him when he didnt report them for
been embezzling funds from shareholders, clients and more for years when he died in
1991. As soon as he passed away, his entire company started to crumble as it was mostly
built on deceit and lies and the games he had played with funding and loans. A team of
forensic accountants spent 14 years figuring out the entire mess and discovered that
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Maxwell had embezzled approximately $1 billion. Clarke, (1993) dubbed him as the
PDAF scam. The Priority Development Assistance Fund scam, also called
the PDAF scam or the pork barrel scam, is a political scandal involving the alleged
Development Assistance Fund (PDAF, popularly called "pork barrel"). Napoles has
been linked with an alleged misuse of the Priority Development Assistance Fund,
together with Philippine Senators Bong Revilla, Jinggoy Estrada,Juan Ponce Enrile, and
government was defrauded of some 10 billion in the course of the scam,[1] having been
Plunder case against the Binays. In an article in the Philippine Inquirer on July
23, 2014, Jejomar Binay and his son Jun jun Binay over the alleged unconscionable
overpricing in the construction of an 11-story parking building that the city government
All Certified Forensic Accountants must exemplify the highest moral and ethical
standards and must agree to abide by the bylaws of the and Code of Professional Ethics.
fraud examination, litigation support, due diligence and money laundering etc
Some of the findings of Huber (2011) showed that there are for-profit forensic
accounting corporations that do not disclose their legal status; a sinificant number of
forensic accountants do not know the legal status of the corporations that issued their
certifications and may incorrectly believe that the corportations that issued their
profession then the necessity of having and complying with a strong, effective, and
on a more urgent appeal. However, the differences in the legal structures of forensic
accounting corporations have to this point hindered the development of a common code
more companies are recently experiencing incidents of fraud than in prior years; taking
measures to combat fraud; and launching new antifraud initiatives and programs.
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The study undertaken by Ramazani, Rafiei Atani, (2010) indicates the low level
encouraged that all businesses should put in place forensic accounting as a tool to
these have led to better performance and encouraged individuals to commitment to the
some factors that hinder the acceptance of forensic accounting as a means to curtail
fraudulent activities.
accounting in these economies is niche field. Many still perceive forensic accounting as
just an extension of investigative auditing. There not enough qualified accountants with
In India, for example, according to Biswas, et. Al. (2003), most of the corruption
cases that have been discovered showed that politicians and bureaucrats were involved.
They further noted that due to the complex and traditional judicial system and political
against such big shots that is admissible in the court of law. The admissibility, of
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evidence in compliance with the laws of evidence is crucial to successful prosecutions
Biswas, et.al. (2003) added that it will be quite costly if the issues were brought
to court and where it involves expert witnessing. Thus, most companies prefer to settle
the issue outside the court to avoid the expensive cost and the risk of bad publicity on
significant economic crimes with the average loss per company of $2,199, 930 (PWC
2003). These survey results underscore the importance of forensic accounting practice
and education
practices, certifications, and education. These studies also provide evidence indicating
that forensic accounting education has evolved from being limited, to continuing
Buckhoff and Schraders study (2000, 135) finds, adding a forensic accounting
course to the accounting curriculum can greatly benefit the three major stakeholders in
graduates.
Efiong, Zadeh , and Ramazani (2012) observed that there is less number of
integrating forensic accounting into accounting curriculum in the universities (Razaee et.
al, 1992).
fraudulent financial statements, the demand for forensic accounting educations was
further highlighted in Carnes and Gierlansinki (2001). The authors examined the
mismatch between the supply of and demand for auditors with forensic accounting
skills. They noted that the universities have been slow in responding to this demand,
particularly in designing courses. Rezaee and Burton (1997) and Gierlasinki et al. (1998)
The reasons always given during surveys for this slow pace in change of accounting
curricular include: not having enough room in the curricular to include additional
training in fraud or forensic accounting, or /and, that the school must stick to the basics
already offering forensic accounting courses while some are even introducing full
academic program in the area. Kleyman (2006) reviews some examples of these
institutions and the program they offer in forensic accounting. For example, he notes
that California State University, Northbridge has been teaching forensic accounting
like the Philippines has not received adequate coverage in accounting curriculum as
demanded by investors and the business community who are deeply concerned with
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reported financial and accounting scandals. In fact, only the University of the Cordilleras
arise from the fact that forensic accounting service is still new to most of the businesses
and even to the public. Some may even be unaware of the existence of the system and so
benefit, perceived risks, perceived susceptibility to and perceived severity of fraud, will
regarding the awareness and engagement of forensic accounting services needed to curb
the growing fraudulent activities in business. Cognizant of this reality the researcher
was motivated to conduct this study, although to a very limited scale, that examined the
fraud cases in Philippine companies. Generally, the study was designed to explore the
Forensic Accounting.
use it. The theoretical framework of this research was based on the Theory of Planned
Behavior.
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The Theory of Planned Behavior (abbreviated TPB) links beliefs and behavior.
The concept was proposed by Icek Ajzen (1991) to improve on the predictive power of
the theory of reasoned action by including perceived behavioral control. The theory of
planned behavior has frequently been applied to predict the likelihood that individuals
will engage in various pro-social behaviors. The theory states that attitude toward
individuals behavioral intentions and behaviors. The constructs of the theory are:
effect) about performing the target behavior (Fishbein and Ajzen , 2005) In this study
the effectiveness of the forensic accounting mechanisms and prevention constituted the
Attitude variables.
behavior should be performed. The factors that hinder the use of forensic accounting
and the perceived benefits derived from forensic accounting were considered the
to perform a given behavior. This construct was represented by the professional skills
1.
Behavior. This is the actual observable thing that you do. Obviously, item
A general rule, the more favorable the attitude and the subjective norm, and the
greater perceived control the stronger should the persons intention to perform the
behavior in question.
To further clarify the rationale of the adjusted TPB framework awareness and
perception were clearly differentiated. These two key metrics are typically done
together in the same tracking study to measure product strength in the market in the field
research due to their parallel essences with forensic accounting as the product brand.
measured through surveys that ask participants a series of questions like What brand
comes to your mind if want ? without any kind of hint. For top brands like Coke,
brand. For example, perception for Volvo will be safety. Survey will have questions
like How do you rank car brands in terms of safety? And various questions will be
asked on quality,
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performance, or green. Questions depend on what is goal for the brand and how you
Thus, the research model assumed that awareness gives rise to perception.
The perception constructs were brought about by the level of awareness which affected
the intensity of intention to use timeliness and educational activities and ultimately
actual usage.
Perception
Perceived
Effectiveness of
Mechanisms
Extent
Perceived Benefits - Intent to use Usage
Perceived
Hindrances
Ease to do
Perceived behavior
control
-CPA practitioners
Figure 1: Research Model
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The following questions were framed to attain the objectives of the study.
prevention.
3. What was the degree of intent to use forensic accounting among the accountants in
terms of:
Timeliness
Educational activities
4. What was the extent of actual usage of forensic accounting among the CPA educators
Based from the statement of the problem stated, the hypotheses were assumed.
1. There was no significant relationship between the level of awareness and the
educational activities.
actual usage.
The importance of the study came from its attempt, which might be widely
outbreak that would many organizations. The initial conception of the idea to study
forensic accounting was born out of the need to enhance fraud prevention and detection
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in the Philippines. Fraud and corrupt practices have slowed down the pace of the
countrys development. The menace is rather existent in this country despite the
The study is relevant in a sense that the fraud prevention and detection
mechanisms currently in use are not effective. This study could motivate Philippine
undergraduate curriculum or
(CHED) now has information at hand which could persuade accountancy departments
are accredited.
Method
Research Design
The research design used in this study is based on both survey and descriptive
methods. A descriptive research method is used when the researcher intends to describe
specific behavior as it occurs in the environment. Descriptive studies are usually the best
methods for collecting information that will demonstrate relationships and describe the
world as it exists. This research employed this research design to demonstrate the
levels of awareness and perception of the CPA faculty members on forensic accounting
Surveys are commonly used to collect self-report data from the participants of
the study. The survey method was implemented to gather sufficient amount of primary
Participants
regarding forensic accounting. For the purposes of the study, a certified accountant is an
certified accountants are more likely to be familiar with forensic accounting than an
College of Business at Holy Angel University were selected as purposive samples, but
Procedure
Holy Angel University, all of them were selected as respondents of this study. However,
a purposive or judgmental sampling was used instead because out of 47 CPA accounting
educators, only 30 completed the data in the questionnaire. This involves the selection of
samples which in the opinion of the researcher are representative in the sense that they
will provide the needed answers to the research question(s) thereby enabling the
researcher to meet the objectives of the study (Saunders, Lewis and Thornhill, 2009).
instrument. Therefore, this study used the same method as the previous studies (Evaz
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zadeh and Ramazani, 2012; Koh, Arokiasamy,and Lee Ah Suat, 2009; Zadeh and
To enhance the response rate and understanding of the expected respondents, the
questionnaire was designed such that questions and possible responses were arranged
correspondingly in columnar form. The purpose of the survey was clearly stated to
enable the respondents see the need to give accurate answers to the questions in the
questionnaire.
Only twenty six respondents completed and delivered the questionnaire to the
researcher. A response rate of 64% which is computed as the quotient of the number of
low response rate could be attributed to the lack of qualification of the teachers.
The questions in the questionnaire were divided into eight groups. The
Accounting; (E). Perceived factors that hinder the use of forensic accounting in the
Except for the first part which collected information about demographic profile
of the respondents, all the other parts used the 4 Likert-scale types of questions. The
scale values were adjusted according to the appropriateness of the needed response with
Descriptive statistics and correlations among the research variables were computed. The
of observations that exist for each data point or grouping of data points.
values.
It is defined as the sum of all given values divided by the total number of values.
the relations between variables. A strong, or high, correlation means that two or more
variables have a strong relationship with each other while a weak, or low, correlation
means that the variables are hardly related. The most widely used type of correlation
correlation. The degree of relationship between the perception constructs and awareness
were computed. Similarly, correlational analysis was used to measure the relationship
between level of intention and educational activities and awareness were also calculated.
The list below represents how the computed correlation values were interpreted.
Results
The demographic profile of respondents are presented in tables 1-4. The respondents
Table 1
Gender of respondents
Gender N %
Male 17 56.7
Female 13 43.3
30 100
Most of them 22 (73.33%) were 21-35 years old. Those 36-45 years old constituted
20% (6) of the respondents. Two (6%) of the respondents were aged 46-55 years old.
Table 2
26-30 7 23.33
31-35 6 20.00
36-40 3 10.00
41-45 3 10.00
46-50 1 3.33
51-55 1 3.33
30 100
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Additionally, the results indicated that 11 (37%) held BSA degree while 18 (60%)
Table 3
BSA 11 36.67
MBA 18 60
PhD 1 3.33
Total 30 100
One-third (9) of the number of respondents were relatively new in the profession with
only 1-5 years of practice. More than half (53.33%) had been in the profession for 6-15
years. Only a handful, 5 (16.67%) had 16-20 years of experience in the field.
Table 4
1-5 9 30
6-10 9 30
11-15 7 23.33
16-20 5 16.67
30 100
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Level of Awareness of Respondents
Table 5
Yes 25 83.33
No 5 16.67
Of those who answered yes they were aware of the existence of forensic
accounting, 15 (60%) replied highly aware while 6 (24%) indicated only moderately aware
and 4 (16%) replied low or very low. Table 6 presents the responses on this parameter of
awareness.
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Table: 6
Very low 2 8
Low 2 8
Moderate 6 24
High 15 60
Very high 0 0
Total 25 100
The results as to their level of awareness as to the aims of forensic accounting showed
that 25 (83%) strongly agree that they were aware that one of the aims of forensic
accounting is detection and prevention. Only 3 (10%) indicated agree with a mean of
0.13. Two (7%) respondent disagreed. The mean of their responses was 3.33
Table 7
Strongly disagree 0 0
Disagree 2 7
Agree 3 10
Strongly agree 25 83
Total 30 100
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The responses as to the power of forensic accounting mechanism in fraud detection
and prevention showed that 25 (83%) strongly agreed while only 4(13% ) just agreed. 1
respondent did not agree. The mean rating of responses was 3.8.
Table 8
Strongly disagree 0 0
Disagree 1 3
Agree 4 13
Strongly agree 25 83
Total 30 100
The responses on level of perception of respondents were organized into three groups
as indicated in the research paradigm (Theory of Planned Behavior). They were: Attitude
perceived benefits and perceived hindrances; and perceived control represented by the
mean value of the responses. The mechanisms that occupied the top five ranks as most
effective which were: corporate code of conduct and ethics policy (3.83), increased role of
audit committee (3.63), fraud prevention and detection training (3.63), inventory observation,
fraud auditing, staff rotation policy ethics officer had mean ratings equal to 3.60, financial
ratios (3.57), internal controls and discovery sampling , were both rated with a mean of 3.53.
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were top five in the list of effectiveness. On the other hand, forensic accountants,
operational audit, whistleblowing , code of sanctions against suppliers/contractors and
surveillance equipment were the garnered the lowest mean ratings at 2.87. The overall mean
of the mechanisms was 3.22. Table 9 shows the complete list of ranks and means of the
mechanisms.
Table 9
of using accounting techniques, the respondents ratings showed that forensic accounting
will be sustained with a mean of 3.86 followed closely by forensic accounting prevents
fraudulent behavior with a mean of 3.80. That forensic accounting can instill ethical
behaviors was relatively moderate. Although they agreed that financial fraud can be
prevented or reduced, the mean of this benefit was merely 3.07 with forensic accounting
techniques can recover losses as the least rated at 3.0. The overall mean of the benefits was
3.49. The mean ratings and ranking of the benefits are shown in table 10.
Table 10
perception of the respondents with regard to the factors that hinder the usage of forensic
accounting was measured in terms of the composite mean of the identified barriers. The
respondents ratings showed that too much centralization of authority gathered the highest
educational system ranked third with their mean rating of 3.13. The least hindrances rated
Table11
Overall mean
3.19
of the respondents were converted into arbitrary descriptive values as follows: BSA = 2;
MBA= 3; PhD = 4. The results showed that overall mean for educational qualification 2.67.
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Table 12
MBA/MBM 3 18 54
PhD 4 1 4
Length of service: Correspondingly, the years in the profession were converted as: 1-
5 years = 1; 6-10 years = 2; 11-15 years = 3; 16-20 years = 4. The overall mean was
computed at 2.27.
Table 13
6-10 2 9 18
11-15 3 7 21
16-20 4 5 20
Timeliness. This group measures the time frame the respondents intended to use
forensic accounting. These measures were: current, near future, soon, possible.
accounting, the mean rating was highest on the possibility to use forensic techniques (3.76).
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The intent to use in the near future ranked second (3.63). Current using and will soon
acquire its services were rated equally at 3.60. Table 14. lists the items on timeliness of
Table 14
could enhance the awareness of forensic accounting, shows that seminar/workshops were
rated highest with a mean ratings of 3.90. Teachings/research came close at mean ratings
Table 15
Seminars/workshops 3.90 1
Teachings/research 3.86 2
Conferences 3.13 3
This measured the actual observable behavior that the respondents were already
engaged in. The fraud prevention and detection mechanisms that they claimed to employ in
The mechanisms rated as most widely used were password protection, reference check on
worker, code of sanction against suppliers/contractors were the top three (means are 3.60,
3.50, 3.33). The mechanisms which were rated least employed were: whistle blowing (2.23),
fraud reporting policy (2.23), fraud hotline (2.13), and surveillance (1.90).
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Table 16
Pearson r values were computed to determine the relationships between the variables
A. The first group of correlation values were calculated to measure the degree of
relationships between the level of awareness and perception, intent to use (behavior) and
actual usage (forensic accounting mechanisms in use). Results revealed that the level of
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awareness was very strongly related (. 902) with intent to use. It was also found that it was
strongly related with actual usage at r= .405. Perceived effectiveness showed a moderately
significant (.342) relationship with awareness. However, awareness was weakly correlated
with perceived benefits of forensic accounting (.293) and perceived hindrances in the use of
forensic accounting (.019). The relationship between awareness and educational activities
Table 17
Correlation between the level of awareness and the level of perception variables
Combination Correlation Relationship
Coefficient
Awareness and perceived effectiveness .342 Moderate relationship
relationship
B. The second group of correlation values were calculated to determine the degree of
relationships between the level of perception, intent to use (behavior) and actual usage
perceived effectiveness (.463) and intent to use was found along with perceived benefits
(.405). The extreme opposite was found in the relationship between perceived hindrances and
Correlation between the level of perception and the intent to use forensic accounting
Combination Correlation Relationship
Coefficient
Perceived effectiveness and intent to use .463 Strong relationship
relationship
C. The third group of correlation values were computed to determine the degree of
relationships between intent to use and actual usage. Intent to use as to timeliness was found
to have a strong significant relationship (.506) with actual use of forensic accounting.
However, a negligible relationship (.085) was found in the case of intent to use and
educational activities.
Table 19
Discussion
This study sought to explore the awareness, perception, and usage of forensic
accounting among CPA practitioners who were also college faculty members at Holy Angel
University. The objective of this research was to illustrate a similar concept in brand
marketing management called the hierarchy of effects, where customers must first become
aware of a product, then they develop perception or attitudes and ultimately customers
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purchase and experience the product (Farris, P., Bendle, N., Pfeifer, P., Reibstein, D. J.,
2006). By the same reasoning, awareness of forensic accounting could affect the
perception of accounting practitioners who would in turn enhance the use of this much
needed specialized area of accounting to prevent fraudulent activities in business. There were
30 respondents who were largely males mostly lower than 40 years old. They were
predominantly masters degree holders in business management with almost 1-10 years in the
accountancy profession.
The level of awareness of the respondents was high as with more than 83% of them
aware of its existence, its aims rated at 3.33 mean rating; and they agreed in its power as a
forensic accounting tool which they rated very high at an overall mean of 3.8 almost the
perfect rate.
three aspects namely, perceived effectiveness of fraud prevention and detection mechanisms
The respondents valued corporate code of conduct and ethics policy as the most
effective tool followed by increased role of audit committee as well as prevention and
detection training. Perhaps, these were the tools that they usually apply or implement in their
practice. Among those least effective were forensic accountants, operational audit, whistle
respondents might have found these tools to bring about unfavorable consequences and they
were more restrictive in using them. These described the attitude component of the research
model.
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The respondents indicated that the benefits of forensic accounting would persist and
they would be useful to prevent fraudulent behavior as well as instill ethical behaviors.
However, they claim that its capability to prevent financial fraud and recover losses would
not be as significant. This described one of the subjective norms of the research model.
The respondents attributed the greatest barrier in using forensic accounting to too
accountants, the respondents claimed the former as the greatest hindrance because of their
unhappy dealings with the government agencies such as the Bureau of Internal Revenue.
The latter might have been due to the absence of forensic accounting courses offered in the
Philippines. Besides they might have been called to handle the work of forensic accountants
even if they were not trained in the field. Those least cited as perceived hindrances in the use
transparency. They might have rated the former as least barrier in the use of forensic
accounting because they considered themselves self- sufficient in dealing with fraudulent
activities The latter mechanism not a strong hindrance because the respondents might have
Another part of the research paradigm which would be discussed here was perceived
behavioral control (ability to perform or handle the field) which was represented by the
accounting because they were mostly holders of masters degree in management and had a
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bachelors degree in accountancy. Additionally, 70% of them had more than 5 years of
The intention to use forensic accounting was assumed to be influence by the degree of
perception of the respondents. In this research timeliness was one parameter of intent to use.
The respondents revealed a strong intention to use forensic techniques because the overall
mean of their responses was 3.65 very close to the perfect value of 4. However, there were
more responses on the possibility of using it rather than soon or in the near future and
accounting education were through seminars and workshops. Teachings and researches were
less preferred. This might be explained by the wider exposure of the respondents on these
types of professional enhancement methods. Teachings and researches were less preferred
maybe because they were more time consuming. Conferences were relatively least desired
because they could be expensive and might require far venues. Nevertheless, educational
activities were favored by the respondents since they gave an overall high mean rating (3.65)
on them.
The ultimate importance of awareness and perception was the actual usage of forensic
accounting. The most widely fraud prevention and detection mechanisms used by the
respondents was password protection. This might be due to their pervasive use of devices
where passwords were the most accessible way of protecting information. Reference check
on worker came close as second choice. Reference checking was a common practice and
information could be easily accessed due to modern equipment that accountants are presently
equipped. Fraud hotline and surveillance equipment were selected as the least in use maybe
PERCEPTION ON FORENSIC ACCOUNTING 44
HOLYANGELUNIVERSITY
because the former could not be access easily and could be hacked anytime. The latter was
Discussing the degree of relationships of variables would explain the rational basis of
the research paradigm. Accordingly, the level of awareness could affect the level of
perception which could result in the intent to use and would finally lead to actual usage.
although a moderate effect was found on perceived effectiveness. The level of awareness had
respondents concern on effectiveness than other aspects of perception. They might not have
The level of awareness showed a very strong positive impact on the intent to use. On
the contrary, it did not influence the choice of educational activities. This could be attributed
to the lack of distinction between the traditional accounting course and forensic accounting.
The level of awareness exhibited a strong positive relationship with actual usage. This could
be explained by the respondent s knowledge that the mechanisms they were employing were
Perception variables were positively related with intent to use except for perceived
hindrances. Intent to use was not deterring by perceived hindrances. This could be due to the
The degree of intent to use strongly influenced actual usage as shown by the high
coefficient of correlation between them. This meant intent to use could be a reliable sign of
actual use. However, educational activities were not related with actual usage. This could
This research had some limitations. It was primarily limited by its sample size since it
was focused in one school. The sample size could have been expanded by including
accounting educators from other universities in the region. It could also include business
establishments and government agencies. The questionnaire should have been designed with
more clarity and relevance. The SPSS statistical output should have been analyzed more
Conclusion
accounting could result in a favorable perception of the field which could lead to intent to use
and consequently actual usage. Just like a product brand, higher level of awareness could be
an effective way to bring about greater perception (preference) and its application to curtail
fraudulent activities in businesses and the government where such destructive activities are
widespread.
This study provides insights into definition, research problem, literature review on the
education, and research framework. Forensic accounting is important for all organization
sizes and not limited to for small firms. In todays society, organizations have begun to
Future Research
and the growth in demand for such services. It would also be interesting to investigate the
examine the relevant skills that a forensic accountant should possess. These could be looked
at from the point of view of academicians, practitioners and users of forensic accounting
can be conducted.
Recommendations
In order to bring a high level of awareness make people understand the significance
adequate information on the subject matter could be gathered for the expansion of
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