35 The State Of, and Prospects For, Forensic and Fraud Research that Matters Dan N. Stone Timothy C. Miller Introduction Forensic accounting and fraud investigation is a rapidly growing accounting discipline in at least three domains: (1) practice, (2) education and certification, and (3) research and publication. The growing importance of these practices motivates exploring the nature of foren...

Researchers and practitioners have made many attempts to identify fraud indicators and to build fraud prediction procedures. Fraud is a beg subject and causes tremendous loss to the business world and creates morale problems in the workplace. It represents a critical issue for the accounting profession, in devolved and non-developed countries. Numerous surveys in the 1980s have served to underl...

INTRODUCTION The 2008 Report to the Nation issued by the Association of Certified Fraud Examiners indicated that U.S. organizations lose almost 7 percent of their revenue to fraud, and that the Gross Domestic Product (GDP)-based annual fraud estimate for the United States alone was $994 billion (ACFE, 2008). Of course, we all now recognize that the scourge of fraud is a global phenomenon that e...

Enterprise systems, real time recording and real time reporting pose new and significant challenges to the accounting and auditing professions. This includes developing methods and tools for continuous assurance and fraud detection. In this paper we propose a methodology for continuous fraud detection that exploits security audit logs, changes in master records and accounting audit trails in en...

Large enterprises frequently enforce accounting limits to reduce the impact of fraud. As a complement to accounting limits, auditors use Benford analysis to detect traces of undesirable or illegal activities in accounting data. Unfortunately, the two fraud fighting measures often do not work well together. Accounting limits may significantly disturb the digit distribution examined by Benford an...

Equational zero vector accounting systems, based on duality principles and the double-entry model, were designed as ontological control systems to help prevent and detect fraud and errors inherent in non-equational, single-entry systems. Non-equational systems lend themselves to fraud and errors to a larger degree because the internal control inherent in an equational zero vector system has no ...

Research proposing the application of blockchain technology in accounting assumes the utilization of decentralized consensus mechanisms based on the exertion of scarce resources (Proof-of-Work; PoW), leading to the validation of transactions without the need of any third party. Together with the blockchain, a shared database, PoW is expected to lead to nearly immutable and, therefore, fraud-res...

Data mining techniques are providing great aid in financial accounting fraud detection, since dealing with the large data volumes and complexities of financial data are big challenges for forensic accounting. The implementation of data mining techniques for fraud detection follows the traditional information flow of data mining, which begins with feature selection followed by representation, da...