Examining the Role of Forensic Auditors in Combating Financial Crimes and Corruption in Public Entities

Posted: Jul 26, 1996

• Owen Miller
• Beatrice Long
• Tristan Wallace

Abstract

The persistent challenge of financial crimes and corruption in public entities represents a significant threat to economic stability, public trust, and effective governance worldwide. Traditional auditing approaches have demonstrated limitations in detecting sophisticated financial crimes, particularly those involving collusion, complex transaction networks, and digital manipulation of financial records. This research addresses the critical gap in understanding how forensic auditors can effectively combat these challenges through innovative methodologies and technological integration. The study examines the evolving role of forensic auditors beyond conventional financial examination to include digital forensics, data analytics, and behavioral analysis components. Our research questions focus on identifying the specific competencies, technological tools, and organizational frameworks that maximize forensic auditing effectiveness in public sector contexts. We investigate how the integration of computational methods with traditional auditing expertise enhances detection capabilities and whether certain organizational structures within public entities facilitate or hinder forensic auditing effectiveness. The novelty of this research lies in its quantitative approach to measuring forensic auditing outcomes and its development of a predictive model for corruption vulnerability assessment. Previous research has primarily focused on qualitative case studies or theoretical frameworks, whereas this study provides empirical evidence through systematic analysis of multiple public entities across different geographical and institutional contexts.