The role of forensic accounting in preventing financial crimes: Evidence from Iran

Resumen

The study aims to analyze the use of forensic accounting to investigate financial crimes in Iran, where the profession is just flourishing. Although forensic accounting has become a worldwide phenomenon, its practicality and efficacy in the new markets are not known, especially in Iran. The themes in the existing literature are mostly about developed countries, while little evidence exists about the setting of the middle or low-income countries. This study has, therefore, bridged the gap by discussing through data how this discipline helps in the fight against crime in the non-Western context. Rising financial crimes undermine economic stability and investor confidence in these settings, making this research timely and relevant. It shows how forensic accounting reduces regulatory risk in jurisdictions with weaker control systems. The results of the study are of a highly practical nature for emerging markets’ policymakers, legislative authorities, control organs, and institutions of higher education. A descriptive survey methodology was employed in this study. The sample was made up of 291 out of 318 judicial experts who were randomly chosen from such fields as accounting, auditing, taxation, investment, and insurance throughout Iran. The questionnaire with confirmatory factor analysis and Cronbach's Alpha validation was applied as the main tool for data collection. Data were then computed using SPSS and PLS. The study provides evidence that forensic accounting is an important tool in preventing financial crimes. In addition, the study suggests that the performance of forensic accountants is shaped by the following demographics: age, educational level, and area of expertise. This study has implications for the understanding of the role of forensic accounting as a prevention mechanism in the context of emerging economies.