Can Investigative Accounting Improve Corporate Governance and Ethics

Abstract

As Saudi Arabia continues to work towards the realization of vision 2030 initiatives and strategies, effective corporate transparency and ethical practices have become crucial. Investigative accounting, which is mainly forensic accounting, plays an important role in improving corporate governance by revealing fraudulent actions. Nevertheless, there is a dearth of studies that examined the influence of the internet on governance in Saudi Arabia in particular. This research seeks to establish the level of correlation that exists between investigative accounting practices, corporate governance and ethics in Saudi Arabia’s listed firms. This paper’s research design is quantitative where survey with structured questions were conducted with accounting professionals in Saudi listed companies. The data collected were analyzed using SPSS to test the hypothesis on the link between investigative accounting practices and corporate governance performance. The results highlight the link between investigative accounting and improved corporate governance and ethics, explaining the place of these methods in curbing fraud and promoting fairness. The role of investigative accounting in the Saudi Arabia’s context is emphasized in the study along with the suggestion to apply it to enhance the governance framework of the country in line with the best practices existing in the world.