Black Swan's Metaphorical Theory to the Study of the Effect of Forensic Accounting on Integrated Reporting Quality

Subject Areas : Management Accounting

Mohammad Asadi Chaharborj ¹ , Farhad Dehdar ² , mohammadreza Abdoli ³

1 - PhD Student, Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran
2 - Assistant Professor, Department of Accounting, Shahroud Branch, Islamic Azad University, Shahroud, Iran (author)
3 - Associate Professor, Department of Accounting, Shahroud Branch, Islamic Azad University, Shahroud, Iran

Received: 2022-01-24 Accepted : 2022-08-24 Published : 2022-11-22

Keywords: Forensic Accounting, Implications for integrated re, Black Swan's metaphorical theo,

Abstract :

Accounting today goes beyond one-dimensional and positivist approaches, multidimensional maps in the social sphere; economical; it has culturally and legally institutionalized itself with the aim of creating a level of transparency and respecting the rights of stakeholders. Forensic accounting is considered as one of these changed roles of accounting which can help balance information and decision-making in the capital market and improve the quality of integrated reporting. The purpose of this study is to apply Black Swan metaphor theory to investigate the effect of forensic accounting on strengthening the implications of integrated reporting quality. The present study is applied in terms of research purpose and descriptive-correlational research in terms of data collection. Also, in terms of reasoning method, it is deductive-inductive, and due to the study of data related to a specific time period, the data analysis method is cross-sectional and based on the path analysis method. Research data from compact discs of Tehran Stock Exchange website and data related to the consequences of the quality of integrated reporting of companies through the integrated reporting score index which consists of 5 main elements. Were integrated to measure the publicity and quality of reporting disclosure, measured by screening reports accompanying financial statements. Partial least squares analysis (PLS) was also used to fit the model. The results showed that forensic accounting has a positive effect on strengthening the implications of the quality of integrated reporting of companies.

References:

• ابوالفتحی، حسن.، نوراله‌زاده، نوروز.، جعفری، محبوبه.، خسروی‌پور، نگار. (1400). بررسی پیامدهای اقتصادی کیفیت گزارشگری یکپارچه باتوجه به نقش ویژگی‌های شرکتی، پژوهش‌های تجربی حسابداری، 11(2): 235-262.


• بشکوه، مهدی. (1400). رتبه شفافیت گزارشگری مالی مبتنی بر ویژگی‌های کیفی اطلاعات حسابداری: ارائه مدل جامع اندازه‌گیری و شواهدی از نقش ویژگی‌های حسابرس در بهبود آن، مطالعات حسابداری و حسابرسی، 10(38): 69-86.


• رحمانی، علی.، ولی‌زاده لاریجانی، اعظم.، میرزایی بیرامی، راحله. (۱۴۰۰). استانداردهای بین‌المللی گزارشگری مالی () و کیفیت گزارشگری مالی، فصلنامه پژوهش‌های حسابداری مالی، ۱۲(۴): ۵۹-۷۸.


• شریفی، سمیه.، واعظ، سیدعلی.، بصیرت، مهدی. (1400). توسعه پارادایم حسابداری قضایی در نوسان‌پذیری سطحِ حفاظت از منافعِ سهامداران در بین شرکت‌ها: تحلیلی مبتنی بر آزمون نظریه ثرندایک، حسابداری مدیریت، 14(48): 69-86.


• صادقی، شریف.، سیدجلال، اصولیان، محمد.، ابوالفتحی، ماندانا. (1395). ارزیابی عملکرد پرتفوی با استفاده از استراتژی سرمایه‌گذاری قُوی سیاه، دانش سرمایه‌گذاری، 5(18): 161-177.


• عبدی، مصطفی.، کاظمی‌علوم، مهدی.، آقاجانلو، سمیه.، شهبازی، وحید. (۱۳۹۸). تأثیر نقش دوگانه‌ی «حسابدار قضایی ـ حسابدار رسمی» شریک مؤسسه حسابرسی بر کیفیت حسابرسی، فصلنامه حسابداری مالی، ۱۱(۴۳): ۹۷-۱۲۵


• قهاری، اهورا.، باقری، محمود. (۱۳۹۹). ماهیتِ حقوقیِ استانداردهایِ حسابداری، نشریه حسابدار؛ ۳۳۵(۱۲): ۱۶-۲۵.


• لبیب‌زاده، محمدحسین.، حجازی، رضوان.، صالحی، اله‌کرم.، هرمزی، فرشین. (1400). نقشِ الگو‌واره تحکیم حسابداری دادگاهی در تغییر رویکردِ افشای ریسک شرکت‌های بازار سرمایه: بسط نظریه همولوژی جهت نمادگراییِ ادراکِ سرمایه‌گذاران، دانش مالی تحلیل اوراق بهادار، 14(50): 57-76.


• Alaoubi, A., Almomani, M, A. (2021). The Moderating Effect for Forensic Accounting on the Relationship between corporate Governance and Quality of Accounting Information in The Jordanian Public Shareholding Companies, International Journal of Academic Research in Accounting Finance and Management Sciences, 11(2): 47–61.


• Alshurafat, H., Al Shbail, M.O. and Mansour, E. (2021). Strengths and weaknesses of forensic accounting: an implication on the socio-economic development, Journal of Business and Socio-economic Development, https://doi.org/10.1108/JBSED-03-2021-0026


• Awolowo, I. F., (2014). The Relevance of Forensic Accounting in Mitigating the Audit Expectation Gap. s.l., University of Portsmouth.


• Bartlett, R. (1993). A Scale of Perceived Independence: New Evidence and Old Concept. Accounting, Auditing and Accountability Journal, 6.


• Botes, V. and Saadeh, A. (2018). Exploring evidence to develop a nomenclature for forensic accounting, Pacific Accounting Review, 30(2): 135-154. https://doi.org/10.1108/PAR-12-2016-0117


• Brajković, A., Peša, A, R. (2015). Behavioral Finance and "Black Swan" Theory, Oeconomica Jadertina, 5(1): 65-93. https://doi.org/10.15291/oec.294


• Crumbley, L. (2019). Forensic accounting is more than just fraud, available at: https://www.researchgate.net/publication/338084263_Forensic_Accounting_Is_More_Than_Just_Fraud


• Dayanandan, A., Donker, H., Ivanof, M. and Karahan, G. (2016). IFRS and accounting quality: legal origin, regional, and disclosure impacts, International Journal of Accounting & Information Management, 24(3): 296-316. https://doi.org/10.1108/IJAIM-11-2015-0075


• DiGabriele, J, A., Heitger, L, E., Riley, R. (2020). A Synthesis of Non-Fraud Forensic Accounting Research, ournal of Forensic Accounting Research, 5(1): 257–277. https://doi.org/10.2308/JFAR-19-034

 

• Durtschi, C., Rufus, R, J. (2015). Arson or Accident: A Forensic Accounting Case Requiring Critical Thinking and Expert Communication, Issues in Accounting Education, 32(1): 113–122. https://doi.org/10.2308/iace-51350


• Ernstberger, J., Hitz, J. M., & Stich, M. (2011). Enforcement of Accounting Standards in Europe: Capital Market Based Evidence for the Two-tier Mechanism in Germany. European Accounting Review.


• Evans, G., Lusher, J. and Day, S. (2021). Completeness of the qualitative characteristics using Foucauldian critical discourse analysis and content analysis paradigms: towards a revised conceptual framework, Journal of Financial Reporting and Accounting, https://doi.org/10.1108/JFRA-11-2020-0313


• Franke, B., Huang, A., Li, R, Z. (2020). Judicial Precedents on GAAP Violations, Litigation Risk         and Misreporting, The Hong Kong University of Science and Technology, Conference paper.


• Gray, D. (2008). Forensic Accounting and Auditing: Compared And Contrasted To Traditional Accounting And Auditing, American Journal of Business Education, 1(2): 115-126.


• Gray, R. O. & Moussalli, S. D., (2006). “Forensic Accounting and Auditing United Again: A Historical Perspective”. Journal of Business Issues, 2: 15-


• Halilbegovic, S., Mekic, A., Huric, A. (2015). Forensic accounting as a solution to manipulative accounting of SME’s in Bosnia and Herzegovina, Ecoforum, 2(11): 97-129.


• Johnson, N., Louis Chidi, E., Mark, P. (2021). Forensic Accounting and Quality of Financial Reporting of Quoted Banks in Nigeria, Global Journal of Management and Business Research: D Accounting and Auditing, 21(1): 42-55.


• Karabayir, M, E. (2019). Forensic Accounting: Development and Practices around the World, New Trends in Social Sciences, Academic Publishing, 47-62.


• Kruoa, J., Jones, C. (2013). Black Swan Theory: Applications to energy market histories and technologies, Energy Strategy Reviews, 1(4): 286-290 https://doi.org/10.1016/j.esr.2013.02.004


• Lakshmi, G. (2018). Gekko and black swans: Finance theory in UK undergraduate curricula, Critical Perspectives on Accounting, 52(1): 35-47. https://doi.org/10.1016/j.cpa.2016.01.004


• Lindahl, F., Schadewitz, H. (2013). Are Legal Families Related to Financial Reporting Quality?, A Journal of Accounting, Finance and Business Studies, 49(2): 242-267. https://doi.org/10.1111/abac.12008


• Lucy, O, U., Okoh, U, K., Nnaemeka, N, J. (2016). Does Forensic Accounting Enhance Quality Of Financial Reporting In Nigeria? : An Empirical Investigation, European Journal of Accounting, Auditing and Finance Research, 4(8): 62-48.


• Olaoye, C, O., Olanipekun, C, T. (2015). Impact of Forensic Accounting and Investigation on Corporate Governance in Ekiti State, Journal of Accounting, Business and Finance Research, 4(1): 25-36. https://doi.org/10.20448/2002.41.28.36


• Oyedokun, G, E. (2015). Integrity of Financial Statements and Forensic Accounting Techniques in Internal Control of Business Organizations, SSRN Electronic Journal, https://doi.org/10.2139/ssrn.2861578


• Ozili, P, K. (2015). Forensic Accounting and Fraud: A Review of Literature and Policy Implications, University of Essex, https://mpra.ub.uni-muenchen.de/77236


• Öztürk, M.S. and Usul, H. (2020). Detection of accounting frauds using the rule-based expert systems within the scope of forensic accounting, Contemporary Issues in Audit Management and Forensic Accounting, Emerald Publishing.


• Phiri, J. and Guven-Uslu, P. (2019). Social networks, corruption and institutions of accounting, auditing and accountability, Accounting, Auditing & Accountability Journal, Vol. 32 No. 2, pp. 508-530. https://doi.org/10.1108/AAAJ-07-2017-3029


• Popoola, O, M, J., Che-Ahmad, A., Samsudin, R, Sh. (2014). Forensic Accounting and Fraud: Capability and Competence Requirements in Malaysia, Journal of Modern Accounting and Auditing, 10(8): 825-834.


• Rashid, M.M. (2020). Presence of professional accountant in the top management team and financial reporting quality: Evidence from Bangladesh, Journal of Accounting & Organizational Change, 16(2): 237-257. https://doi.org/10.1108/JAOC-12-2018-0135


• Rehman, A. and Hashim, F. (2021). Can forensic accounting impact sustainable corporate governance?, Corporate Governance, 21(1): 212-227. https://doi.org/10.1108/CG-06-2020-0269


• Rennekamp, K., Rupar, K, K., Seybert, N. (2015). Impaired Judgment: The Effects of Asset Impairment Reversibility and Cognitive Dissonance on Future Investment, The Accounting Review, 90(2): 739-759. https://doi.org/10.2308/accr-50879


• Renzhou, D. (2015). Research on Legal Procedural Functions of Forensic Accounting, Energy Procedia, 5(1): 2147-2151. https://doi.org/10.1016/j.egypro.2011.03.371


• Rhee, S, Gh, Wu, F. (2020). Conditional extreme risk, black swan hedging, and asset prices, Journal of Empirical Finance, 58(2): 412-435. https://doi.org/10.1016/j.jempfin.2020.07.002


• Shahwan, Y. (2008). Qualitative characteristics of financial reporting: a historical perspective, Journal of Applied Accounting Research, 9(3): 192-202. https://doi.org/10.1108/09675420810919748


• Yarovaya, L., Matkovskyy, R., Jalan, A. (2021). The COVID-19 black swan crisis: Reaction and recovery of various financial markets, Research in International Business and Finance, 59(3): 92-126. https://doi.org/10.1016/j.ribaf.2021.101521


• Zarghami, S, A., Dumark, J. (2021). Unearthing vulnerability of supply provision in logistics networks to the black swan events: Applications of entropy theory and network analysis, Reliability Engineering & System Safety, 215(3): 1-34. https://doi.org/10.1016/j.ress.2021.107798

 

•