Can forensic accounting impact sustainable corporate governance?

Abstract

Purpose

The purpose of this paper is the measurement of forensic accounting’s (FA) impact on sustainable corporate governance (SCG) within Omani public listed companies. Beyond merely cataloging the latest criminal innovations and SCG problems, this paper offers a path forward to overcome the myriad threats that can harm the organization and society. FA and SCG can achieve, anticipate and prevent tomorrow’s fraud today before organizations reach the point of no return.

Design/methodology/approach

For this study, FA is an independent variable and SCG is the dependent variable. This study used a descriptive cross-sectional survey design. Data are collected by internet-based tool and analyzed via partial least squares structural equation modeling and Statistical Package for Social Sciences.

Findings

Result suggests that FA has a significant direct impact over SCG; moreover, FA can become the part of governance management toward the elimination of fraud and achievement of SCG.

Practical implications

This study can assist regulators, professional bodies and organizations in amending their codes of corporate governance and organizational policies by introducing the SCG clauses and making FA as a compulsory part of governance system.

Originality/value

Up to the best of the knowledge of researchers, there is no study conducted before which verifies the FA impact on SCG; moreover, previous relevant studies verify only one constituent for SCG, whereas this study is identifying three constituents necessary for SCG.

Citation

Rehman, A. and Hashim, F. (2021), "Can forensic accounting impact sustainable corporate governance?", Corporate Governance, Vol. 21 No. 1, pp. 212-227. https://doi.org/10.1108/CG-06-2020-0269