Jove
Visualize
Contact Us
  1. Home
  3. Research Domains
  5. Commerce, Management, Tourism And Services
  7. Accounting, Auditing And Accountability
  9. Accounting Theory And Standards
  11. The Impact Of External Auditors With Forensic Accounting Competencies On Auditee Firm Performance.

The impact of external auditors with forensic accounting competencies on auditee firm performance.

Rahaf Alkhalaileh1, Hashem Alshurafat1, Husam Ananzeh2

  • 1Accounting Department, Business School, The Hashemite University, Zarqa, Jordan.

Heliyon
|June 13, 2024

Related Experiment Videos

Foreign Accent and Forensic Speaker Identification in Voice Lineups: The Influence of Acoustic Features Based on Prosody
09:09

Foreign Accent and Forensic Speaker Identification in Voice Lineups: The Influence of Acoustic Features Based on Prosody

Published on: September 27, 2024

440
Scanning Electron Microscopic Evaluation of Surface Defects of Remover Retreatment File After Single and Multiple Uses
03:07

Scanning Electron Microscopic Evaluation of Surface Defects of Remover Retreatment File After Single and Multiple Uses

Published on: October 11, 2024

491
Computerized Adaptive Testing System of Functional Assessment of Stroke
05:21

Computerized Adaptive Testing System of Functional Assessment of Stroke

Published on: January 7, 2019

5.8K

View abstract on PubMed

Summary
This summary is machine-generated.

External auditors with forensic accounting skills positively impact company financial performance. This highlights the importance of forensic accounting competencies for businesses in industrial and service sectors.

Area of Science:

  • Accounting
  • Auditing
  • Financial Performance

Background:

  • Financial reporting quality is crucial for economic stakeholders.
  • Forensic accounting skills are increasingly recognized for their role in enhancing financial integrity.
  • The impact of specialized auditor skills on firm performance requires further empirical investigation.

Purpose of the Study:

  • To investigate the effect of auditors possessing forensic accounting skills on the financial performance of audited companies.
  • To provide empirical evidence on the value addition of forensic accounting expertise in the auditing process.
  • To explore the relationship between forensic accounting competencies and corporate financial outcomes.

Main Methods:

  • Quantitative research approach.
  • Linear regression analysis applied to a sample of 74 companies.
  • Data collected from industrial and service sector companies listed on the Amman Stock Exchange (2012-2021).

Main Results:

  • A statistically significant positive relationship was found between external auditors' forensic accounting competencies and the financial performance of audited companies.
  • The presence of auditors with forensic accounting skills is associated with improved financial performance metrics.
  • Forensic accounting expertise demonstrates a beneficial effect on corporate financial outcomes.

Conclusions:

  • External auditors with forensic accounting skills contribute positively to the financial performance of companies.
  • The findings underscore the importance of developing and promoting forensic accounting skills within the auditing profession.
  • Companies, particularly in the industrial and service sectors, can benefit from engaging auditors with specialized forensic accounting capabilities.
Keywords:
Amman stock exchangeExternal auditorFirm financial performanceForensic accounting competenciesLinear regression

Related Experiment Videos

Foreign Accent and Forensic Speaker Identification in Voice Lineups: The Influence of Acoustic Features Based on Prosody
09:09

Foreign Accent and Forensic Speaker Identification in Voice Lineups: The Influence of Acoustic Features Based on Prosody

Published on: September 27, 2024

440
Scanning Electron Microscopic Evaluation of Surface Defects of Remover Retreatment File After Single and Multiple Uses
03:07

Scanning Electron Microscopic Evaluation of Surface Defects of Remover Retreatment File After Single and Multiple Uses

Published on: October 11, 2024

491
Computerized Adaptive Testing System of Functional Assessment of Stroke
05:21

Computerized Adaptive Testing System of Functional Assessment of Stroke

Published on: January 7, 2019

5.8K

Related Concept Videos

Actuarial Approach01:20

Actuarial Approach

74
The actuarial approach, a statistical method originally developed for life insurance risk assessment, is widely used to calculate survival rates in clinical and population studies. This method accounts for participants lost to follow-up or those who die from causes unrelated to the study, ensuring a more accurate representation of survival probabilities.
Consider the example of a high-risk surgical procedure with significant early-stage mortality. A two-year clinical study is conducted,...
74
Social Facilitation01:04

Social Facilitation

31.9K
Not all intergroup interactions lead to negative outcomes. Sometimes, being in a group situation can improve performance. Social facilitation occurs when an individual performs better when an audience is watching than when the individual performs the behavior alone. This typically occurs when people are performing a task for which they are skilled.
31.9K
Self-Evaluation: Self-Enhancement and Self-Verification03:00

Self-Evaluation: Self-Enhancement and Self-Verification

5.2K
Social psychologists have documented that feeling good about ourselves and maintaining positive self-esteem is a powerful motivator of human behavior (Tavris & Aronson, 2008). In the United States, members of the predominant culture typically think very highly of themselves and view themselves as good people who are above average on many desirable traits (Ehrlinger, Gilovich, & Ross, 2005). Often, our behavior, attitudes, and beliefs are affected when we experience a threat to our...
5.2K
Internal and External Forces01:12

Internal and External Forces

12.9K
Newton's first law states that a net external force causes a change in motion. External forces act on an object or system, originating outside of the object or system. In contrast, internal forces originate inside the system of interest and do not lead to any acceleration. In simpler words, internal forces are forces that act on one part of an object and are exerted by another part of the same object. External forces are forces that act on an object due to some other object. Therefore, when...
12.9K
One-Way ANOVA: Equal Sample Sizes01:15

One-Way ANOVA: Equal Sample Sizes

3.3K
One-Way ANOVA can be performed on three or more samples with equal or unequal sample sizes. When one-way ANOVA is performed on two datasets with samples of equal sizes, it can be easily observed that the computed F statistic is highly sensitive to the sample mean.
Different sample means can result in different values for the variance estimate: variance between samples. This is because the variance between samples is calculated as the product of the sample size and the variance between the...
3.3K
Significance Testing: Overview01:04

Significance Testing: Overview

3.4K
Significance testing is a set of statistical methods used to test whether a claim about a parameter is valid. In analytical chemistry, significance testing is used primarily to determine whether the difference between two values comes from determinate or random errors. The effect of a particular change in the measurement protocol, analyst, or sample itself can cause a deviation from the expected result. In the case of a suspected deviation/outlier, we need to be able to confirm mathematically...
3.4K
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies