The state of forensic accounting: South Africa versus the United States of America
DOI:
https://doi.org/10.20525/ijrbs.v12i7.2904Keywords:
Forensic accounting, Jurisdictions, South Africa, State of forensic accounting, USAAbstract
As a multi-faceted emerging profession, forensic accounting is surrounded by some issues, controversies, and challenges among them lack of consensus on the entry requirements and certification of the profession, misconstruction of the innate goal of forensic accounting, and the lack of consensus on the teaching pedagogies of forensic accounting. The claim of ownership of forensic accounting by different professional bodies in different jurisdictions also exacerbates these challenges. With these issues surrounding the profession, this study sought to examine the state of affairs of forensic accounting in a developed economy, USA, and a developing economy South Africa. The comparison was based on the following criteria: certification; the profession issues; constitutional and judicial issues; and legal and regulatory issues. The study employed a desktop literature review methodology involving an in-depth review of relevant and current literature. The paper found that both countries share a similar status of the forensic accounting profession only on the profession issues. Differences were noted on the certification; constitutional and judicial issues; as well as the legal and regulatory issues. To date, the profession is regulated in both jurisdictions but it happened in 2000 in the US and 2013 in South Africa. It can therefore be concluded that the similarity in forensic accounting profession status for the two jurisdictions is based only on the profession criteria with differences existing in the certification; constitutional and judicial; and legal and regulatory issues. The paper recommends more studies on comparing the status of the profession in other jurisdictions because extant literature still alludes to unresolved issues and challenges on forensic accounting in some jurisdictions.
Downloads
References
Abbott, A. (1988). The System of Professions: An Essay on the Division of Expert Labor. Chicago: University of Chicago Press. 435 pages. ISBN: 0-226-00069-9 DOI: https://doi.org/10.7208/chicago/9780226189666.001.0001
Adams T. (2015). Sociology of Professions: International Divergencies and Research Directions. Work, Employment and Society, 29, 154 – 65. DOI: https://doi.org/10.1177/0950017014523467
Alhusban, A. A. A., Haloush, H. A., Alshurafat, H., Al-Msiedeen, J. M., Massadeh, A. A. M., & Alhmoud, R. J. (2020). The regulatory structure and governance of forensic accountancy in the emerging market: Challenges and opportunities. Journal of Governance & Regulation, 9(4), 149- 161. https://doi.org/10.22495/jgrv9i4art13 DOI: https://doi.org/10.22495/jgrv9i4art13
Alshurafat. H., Al Shbail M. O., & Mansour E. (2021). Strengths and weaknesses of forensic accounting: An implication on the socio-economic development. Journal of Business and Socio-economic Development, 1(2), 135–148. https://doi.org/10.1108/JBSED-03-2021-0026 DOI: https://doi.org/10.1108/JBSED-03-2021-0026
Botes, V., & 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 DOI: https://doi.org/10.1108/PAR-12-2016-0117
Brock D. M., Leblebici, H., & Muzio. D. (2014). Understanding Professionals and Their Workplaces: The Mission of the Journal of Professions and Organization. Journal of Professions and Organization, 1, 1 – 15. DOI: https://doi.org/10.1093/jpo/jot006
Cambridge Dictionary. (2022). https://dictionary.cambridge.org/dictionary/english/certification
Chen, Y. & Van Akkeren, J. K. (2012). “The theory of profession: accountability, qualifications, entry and ethics - a preliminary discussion and early findings on the current state of forensic accountancy in Australia,” paper presented at the National Forensic Accounting, Teaching and Research Symposium, 12-14 February, Wollongong.
Cook, G. W. (1982). Expert witnesses: Their rights and duties. De Rebus, January 1982, 19-22.
Crumbley, D. L. (2001). Forensic Accounting: Older Than You Think. Journal of Forensic Accounting, 2(2), 181-202.
De Beer, D. (2016). Digging Deeper: Forensics in Auditing, BDO South Africa. https://www.bdo.co.za/en-za/insights/2016/forensic/digging-deeper-forensics-in-auditing [Accessed June 15, 2023].
Denhere, V. (2022). Financial Forensic Evidence and Acceptability in the Court of Law. In S. Kamwani, E. Vieira, M. Madaleno, & G. Azevedo (Eds.), Handbook of Research on the Significance of Forensic Accounting Techniques in Corporate Governance (pp. 41-61). IGI Global. https://doi.org/10.4018/978-1-7998-8754-6.ch003 DOI: https://doi.org/10.4018/978-1-7998-8754-6.ch003
DiGabriele, J. A., & Huber, W. (2015). Topics and Methods in Forensic Accounting Research. Accounting Research Journal, 28(1), 98-114. https://doi.org/10.1108/AJR-08-2014-0071. DOI: https://doi.org/10.1108/ARJ-08-2014-0071
Dreyer, K. (2014). A History of Forensic Accounting. https://scholarworks.gvsu.edu/cgi/viewcontent.cgi?article=1339&context=honorsprojects [Accessed June 16, 2023].
Emmanuel, G. E. (n.d.). An evaluation of contemporary issues in forensic accounting practice. http://rep.aiu.edu/submissions/manager_files/document/43929_FORENSIC%20ACCOUNTING%20PRACTICE-DR%20GBAGU.pdf [Accessed June 15, 2023].
Freidson, E. (1989). Theory and the Professions. Indiana Law Journal, 64(3), Article 1. https://www.repository.law.indiana.edu/ilj/vol64/iss3/1
Fry, P. M. (2019). Theories of professions and the status of teaching. In Zepeda, S. J. & Ponticell, J. A. (Eds.). The Wiley Handbook of Educational Supervision (1st ed). pp. 75-100. John Wiley & Sons. DOI: https://doi.org/10.1002/9781119128304.ch4
Gerber, J. P. (2001). Outsourcing of the fraud investigations aspects of forensic accounting in the public and private sectors. Pretoria: [Unisa. Research report].
Grobler, S. (2007). The role of the expert witness. The South African Gastroenterology Review, 11-14.
Hedman, J., & Sundin, O. (2005). Professions and occupational identities. In K. Fisher, S. Erdelez, & L. Mckechnie (Eds.), Theories of information behavior: A researcher’s guide (pp. 293-297). Information Today.
Hegazy, S., Sangster, A., & Kotb, A. (2017). Mapping forensic accounting in the UK. Journal of International Accounting, Auditing and Taxation, 28, 43-56. https://doi.org/10.1016/j.intaccaudtax.2016.12.004 DOI: https://doi.org/10.1016/j.intaccaudtax.2016.12.004
Honigsberg, C. (2020). Forensic accounting. Annual Review of Law and Social Science, 16, doi:10.1146/annurev-lawsocsci-020320-022159. DOI: https://doi.org/10.1146/annurev-lawsocsci-020320-022159
Howieson, B. (2018). What is a ‘good’ forensic accountant? A virtue ethics perspective. Pacific Accounting Review, 30(2), 155-167, https://doi.org/10.1108/PAR-01-2017-0005. DOI: https://doi.org/10.1108/PAR-01-2017-0005
Huber, D. (2012). Is Forensic Accounting in the United States becoming a Profession? Journal of Forensic and Investigative Accounting, 4(1), 255-284.
Huber, D. (2013). Should the forensic accounting profession be regulated? Research in Accounting Regulation, 25(2013), 123-132.
Huber, D. (2014). Forensic Accounting: An Anglo-American Comparison – Forensic Accounting in the U.S.A. Journal of Forensic & Investigative Accounting, 6(3), Special Issue, 154-170.
Huber, D. (2013b). Should the forensic accounting profession be regulated? Research in Accounting Regulation, 25(1), 123-132. DOI: https://doi.org/10.1016/j.racreg.2012.11.006
ICFA (2022) Continuing Professional Development (CPD). https://www.icfasa.org.za/accreditation/cpd [Accessed June 15, 2023].
ICFA SA. (2022). https://www.icfasa.org.za/#:~:text=The%20Institute%20of%20Certified%20Forensic,Forensic%20Accountants%20in%20South%20Africa. [Accessed June 18, 2023].
ICFP. (2022) Continuing Professional Development (CPD). https://www.icfp.co.za/article/continuing-professional-development-cpd.html [Accessed June 17, 2023].
Inquesta. (October 13th, 2022). Who Hires Forensic Accountants? https://inquesta.co.uk/blog/who-hires-forensic-accountants/ [Accessed June 15, 2023].
Issa, M. (2023). Forensic Accounting Education Obstacles in Accounting Programs in Libya. Journal of Current Researches on Social Sciences, 13(2), 299-310.
Iwata, E. (2003). Accounting Detectives in Demand. USA Today, 27 February 2003.
Kranacher, J. J., Morris, B. W., Pearson, T. A., & Riley, R. A. (2008). A model curriculum for education in fraud and forensic accounting. Issues in Accounting Education, 23(4), 505-519. DOI: https://doi.org/10.2308/iace.2008.23.4.505
Liodorova, J., & Fursova, V. (2018). Forensic accounting in the world: Past and present. Journal of Economics and Management Research, 7(2018), 84-99. http://doi.org/10.22364/jemr.7.06 DOI: https://doi.org/10.22364/jemr.7.06
MacDonald, K. M. (1995). The Sociology of the Professions. London. Sage.
McIntyre, J., van Graan, C., van Romburgh, J., & van Zyl, A. (2014). Contextualizing the South African Forensic Accountant. Journal of Forensic & Investigative Accounting, 6(3), 98-153, Special International Issue, 2014
Messmer, M. (2004). Exploring options in forensic accounting. The national public accountant, 5:9–20. National Institute of Justice.
Mutizwa. T. (2 June 2023). Release of forensic accountant standards and qualifying criteria. https://www.bizcommunity.com/Article/196/511/238971.html# [Accessed July 19, 2023].
Niemann, M. (30 June 2023). Professional Standards Launch: Forensic Accountant Practice Standards & Qualifying Criteria. https://acfesa.co.za/news/professional-standards-launch-forensic-accountant-practice-standards-qualifying-criteria [Accessed July 15, 2023].
Nunn, L., McGuire, B., Whitcomb, C., & Jost, E. (2006), Forensic Accountants: Financial Investigators, Journal of Business & Economics Research, 4(2), 1-6. DOI: https://doi.org/10.19030/jber.v4i2.2631
Okoye, E. I., & Akamobi, N. L. (2009). The Role of Forensic Accounting in Fraud Investigation and Litigation Support. The Nigerian Academic Forum, 17(1), 39-44.
Ozili, P. K. (2020). Forensic Accounting Theory. Finance, Insurance and Risk Management Theory Practices, 1, 1-16. DOI: https://doi.org/10.1108/978-1-80043-095-220201005
Rezaee, Z., & Wang, J. (2019). Relevance of big data to forensic accounting practice and education. Managerial Auditing Journal, 3(3), 268-288. DOI: https://doi.org/10.1108/MAJ-08-2017-1633
SAICA. (2013). SAICA and the ACFE SA launch the Forensic Accounting Forum. https://www.saica.co.za/News/NewsArticlesandPressmediareleases/tabid/695/itemid/4213/language/en-US/Default.aspx [Accessed June 23, 2023].
SAIFA. (14 September 2023). https://6sense.com/company/saifa-south-african-institute-of-forensic-accountants/605db35310fce904a7a5afad
Saks, M. (2016). A review of theories of professions, organizations, and society: The case for neo-Weberianism, neo-institutionalism and eclecticism. Journal of Professions and Organization, 2016(3), 170–187. DOI: https://doi.org/10.1093/jpo/jow005
Slot, J. (2012). An evaluation of the forensic accountants’ role in criminal law proceedings. [dissertation/master’s thesis]. [South Africa]: North-West University
Smith, G. S., & Crumbley, D. L. (2009). Defining a Forensic Audit. The Journal of Digital Forensics, Security and Law, 4(1), 61-80. DOI: https://doi.org/10.15394/jdfsl.2009.1054
Texas Wesleyan University. (23 August 2023). Accounting: Forensic/Fraud. https://txwes.libguides.com/c.php?g=825801&p=5895512 [Accessed August 31, 2023].
The Institute of Certified Forensic Accountants. (14 September 2023). https://www.forensicglobal.org/
The University of Scranton. (2022). What is Forensic Accounting? https://elearning.scranton.edu/resources/article/what-is-forensic-accounting/#:~:text=Maurice%20Peloubet%2C%20a%20New%20York,to%20prove%20fraud%20and%20embezzlement [Accessed June 17, 2023].
Tiwari, R. K., & Debnath, J. (2017). Forensic accounting: a blend of knowledge. Journal of Financial Regulation and Compliance, 25(1), 73-85. https://doi.org/10.1108/JFRC-05-2016-0043. DOI: https://doi.org/10.1108/JFRC-05-2016-0043
Veritas Magazine, Issue 1. (February 2021). https://www.acfesa.co.za/resources/Documents/Veritas%20Issue%201%202021.pdf [Accessed June 15, 2023].
Ziegenfuss, D. (25 May 2003) Forensic Accountants: Hot Old Profession. www.odu.edu/ao/instadv/quest/ForensicAccount.html [Accessed August 31, 2023
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Varaidzo Denhere
This work is licensed under a Creative Commons Attribution 4.0 International License.
For all articles published in IJRBS, copyright is retained by the authors. Articles are licensed under an open access Creative Commons CC BY 4.0 license, meaning that anyone may download and read the paper for free. In addition, the article may be reused and quoted provided that the original published version is cited. These conditions allow for maximum use and exposure of the work, while ensuring that the authors receive proper credit.
