Forensic Accounting Methods and Value-Added Tax Fraud

This empirical study aims to examine the connection between forensic accounting methods (investigation operations, procedures, evaluation processes) and value-added tax fraud in Jordan. The targeted population consisted of 289 respondents from auditing accounting working in auditing offices in Jordan. Using online survey questionnaires as an instrument for data collection. The correlation between forensic accounting methods (investigation operations, procedures, evaluation processes) and value-added tax fraud was investigated using Smart Partial Least Square Structural Equation Modeling (PLS-SEM), where the data analysis was performed to test the hypotheses. The findings confirm that the use of forensic accounting techniques and tools could contribute to the prevention of value-added tax fraud. Using PLS-SEM analysis, it was found that three factors could be extracted from forensic accounting methods; namely, investigation operations, procedures, and evaluation processes have a significant effect on value-added tax fraud. This empirical investigation was conducted only in Jordan. Because it is very likely to obtain different results in other nations, the findings cannot be applied to other business environments. Fraud behavior can be explored by investigation operations, procedures, and evaluation processes as an application of forensic accounting methods. Findings of this paper may highlight the amazing relationship between forensic accounting methods and value-added tax fraud for policymakers, regulators, and other stakeholders in developing nations, notably in Jordan. This could pave the way for effective forensic accounting methods for fraud. By demonstrating empirical findings, this study fills the gap in the existing literature and knowledge. Keywords: Forensic Accounting, Investigation Operations, Procedures, Evaluation Processes, Value-Added Tax Fraud DOI： https://doi.org/10.35741/issn.0258-2724.58.3.78