Role of Forensic Auditing in Enhancing the Efficiency of Public Sector Organization

Role of Forensic Auditing

Abstract

Purpose: The aim of study is to investigate the importance of forensic auditing practices in detecting and preventing financial fraud as well as enhancing the efficiency of Public owned entities. Corruption and frauds both are gargantuan twin brothers that have halted the peace of growth for economy, especially developing nations like Pakistan. Many large scale public owned entities are reeling due to corruption and fraud.

Design/Methodology/Approach: Survey was carried out and data were collected from the public sector organizations. Partial Least Square-Structural Equation Modeling (PLS-SEM) was used for data analysis.

Findings: The result reveled that forensic accounting and financial fraud control, forensic accounting and internal control quality, forensic accounting and financial reporting credibility has positive role to promote effectiveness of forensic auditing.

Implications/Originality/Value: Forensic accounting and financial reporting credibility have positive role to promote effectiveness of forensic auditing. The ultimately Public owned entities performance would be increased by controlling corruption and frauds. Thus, this study has significant insights for practitioners while making the strategies to control corruption and frauds.