Forensic accounting skills and knowledge as determinants of fraud detection in Nepalese organizations

Type of the article: Research ArticleForensic accounting plays a vital role in detecting unethical accounting practices through forensic accounting skills and knowledge, which emphasize transparency and governance. This study aims to examine the role of forensic accounting in fraud detection in Nepalese organizations. The study employed a descriptive and causal research design and relied on primary cross-sectional data from professional employees in the financial sector, specifically commercial banks and insurance companies. Data were collected through a structured questionnaire utilizing purposive sampling. Therefore, the study utilized a total of 403 useful datasets for the analysis. Descriptive and inferential statistical tools were employed to analyze the data, including percentages, means, standard deviations, correlations, regression analysis, and Cronbach’s alpha. The study’s findings revealed a strongly positive and significant effect of forensic accounting skills on fraud detection (β = 0.204, p < 0.005). Similarly, a positive and significant impact of forensic knowledge on fraud detection (β = 0.599, p < 0.005) reflects that forensic accounting skills and knowledge help prevent fraud and support the eradication of unethical accounting practices of financial organizations. This finding contributes to existing theory and can be a benchmark for practitioners, policymakers, and other stakeholders in making decisions to address financial issues and fraud in financial institutions.