The Impact of Implementing Forensic Accounting in Reducing Financial Fraud in Public Financial Management Sector in Jordan

  • Dr. Mai Salim Odeh AL-Zboun

Abstract

The study aims at exploring the impact of the applying of forensic accounting in reducing financial fraud through its dimensions (reducing embezzlement, reducing fraud, reducing unauthorized lending, reducing estimation manipulation, and reducing impersonation) in the public financial management sector in Jordan. The descriptive and deductive approach is used as it is commensurate with the objectives of the study. The study population consists of all the employees of the government financial management units that formulate the national financial policy and supervise its implementation, collect public revenues, prepare the state budget, supervise and control the public expenditures, and manage lending and debts. There are (6) government administrative financial units employing (7975) male and female employees where a proportional stratified random sample of (375) employees is selected. The Statistical Package for Social Sciences (SPSS) program is also used in conducting descriptive and deductive analysis and several statistical methods that fit the study’s objectives. Of the most noteworthy results of this study is that there is a statistically significant impact at the significance level (a≤0.05) for applying forensic accounting in reducing the cases of financial fraud in the public financial management sector in Jordan. Also, the results show that the Jordanian public financial management sector’s implementation of the concept of forensic accounting and the laws and legislations contained in this concept and with a high degree of importance has significantly contributed to reducing cases of financial fraud, indicating that the public financial management sector in Jordan adopts the concept of forensic accounting and harnesses all practical tools to apply it to achieve positive results in reducing cases of financial fraud. The study also concludes with a set of important recommendations such as the continuous interest and care of the public financial management sector institutions in Jordan in the concept of forensic accounting and the main contents of this concept and the legislation and laws that govern the work of forensic accounting. Besides, all forensic authorities in Jordan must provide all governmental institutions and bodies, whether working within the public financial management sector in Jordan or institutions that fall outside this scope, with forensic accounting procedures to prevent the occurrence of fraud cases within other institutions.

 Keywords: Forensic Accounting, Financial Fraud, Embezzlement, Fraud, Unauthorized Lending, Estimation Manipulation, Impersonation, Public Financial Management Sector.

Published
2021-02-03
Section
Articles