From detection to disclosure: unpacking the governance pathways linking forensic accounting to financial reporting quality

Although forensic accounting has received increasing attention, limited empirical research has examined the mechanisms through which it is associated with financial reporting quality. In particular, the role of corporate governance as a channel linking forensic accounting practices to financial reporting quality remains underexplored. This study examines the relationships among forensic accounting, corporate governance quality, and financial reporting quality, including the mediating role of corporate governance quality. Using survey data collected from 120 professional auditors in Oman, the proposed relationships were tested using partial least squares structural equation modeling (PLS-SEM). The results show that forensic accounting is positively associated with corporate governance quality and financial reporting quality, while corporate governance quality is positively associated with financial reporting quality. The indirect association between forensic accounting and financial reporting quality through corporate governance quality is also positive and significant, indicating complementary partial mediation. These findings suggest that forensic accounting is associated with financial reporting quality through both direct and governance-related pathways. The study extends the literature by providing a process-oriented explanation of how corporate governance quality helps explain this relationship and offers further insight into the governance role of forensic accounting in Oman.