Towards a Forensic Accounting Paradigm: A Neo-Empiricist Research Agenda

The aim of the discussion paper is to position neo-empiricism as an appropriate theoretical perspective from which to conduct proposed research on how accountants, practitioners and regulators, make sense of the fraud prevention and detection process. It is argued that such a methodological stance provides a rigorous methodological basis whilst facilitating the flexibility of research questioning necessary for effective forensic accounting research. The paper discusses the nature of forensic accounting research and argues for the need to often adopt an objectivity engagement with our understanding of the social world. From this perspective neo-empiricism is argued as a meaningful alternative to positivism, whilst recognizing through the discussions the theoretical assumptions and limitations this approach makes

Fraud Detection and Prevention: A Review of the Latest Developments in U.K. Audit

Proposed reforms to U.K. audit are reviewed from a fraud detection and prevention perspective. A holistic four-actor model that encompasses: the directors, auditor, shareholders, and the regulator, is used to frame the discussion. Focus is drawn to the mediating role of the Audit and Assurance Policy. The paper argues that the proposed reforms have some potential to reduce the audit expectations gap. However, the problem of agency costs and the advisory nature of shareholder voting on the Audit and Assurance Policy significantly limit the possible effectiveness of the reforms from a fraud detection and prevention perspective. Suggestions for future research are made

Bridging the Gap: Integrating Forensic Accounting Skillsets for Enhanced Audit Quality in the Post-Pandemic Era

In response to recent high-profile accounting scandals, the auditing sector is undergoing a critical review of practices. Despite regulatory changes and technological advancements, doubts persist about auditors' effectiveness in identifying financial statement fraud. This article advocates for a paradigm shift in auditors' skillsets, especially amid challenges posed by remote and hybrid work scenarios

Qualitative Research Methodology: A Neo-empiricist Perspective

A commitment to empiricism is evident in much of the published research, in the business and management field, which extols the virtues of ‘qualitative research’ approaches. Yet just what their implicit assumptions to empiricism suggest in terms of the epistemological positioning of the research often remains problematic. It is our position that management researchers need to be more aware of the philosophical commitments they make through their methodological choices if they are to understand what they are investigating. In this paper we argue for the importance of neo-empiricism as a distinct interpretivist mode of engagement with qualitative methods and its position as a response to the criticisms of positivism with respect to developing meaningful understandings of social phenomena is discussed. With the focus of neo-empiricism on developing theory that is grounded in observations of empirical reality, we offer two examples, from Forensic Accounting and International Joint Venture Management, to highlight the general inductive data (thematic) analysis processes associated with such data oriented empirical perspectives. The main focus of the paper is to ‘forefront’ the role of the neo-empiricist perspective as an important interpretive approach in business and management research and to provide a basic understanding of the theoretical commitments of such perspective

Annual Reports: Fact or Fiction? Are there governance implications?

Two recent high-profile announcements of companies going into administration (Palmer & Harvey) and liquidation (Carillion) raise questions about the robustness of statements made in annual reports including the quality and objectivity of audit reporting, and the implications of this on Corporate Governance practice. This discussion coincides with the Financial Reporting Council 'Proposed Revisions to the UK Corporate Governance Code', December 2017. This paper considers some of the behavioural factors which influence performance and, most likely, performance reporting. It also considers some of the potentially fraudulent activity by firms, and the quality and nature of audit reporting in Annual Reports. Contexts of this paper are Agency Theory and Merger and Acquisition (M&A) activity. The next step in this research will be to increase the sample size and explore the scale of the issues being considered, and then develop recommendations for both corporate reporting narratives in Annual Reports, and the adoption of forensic accounting techniques in audit reporting

Towards widening participation in post-graduate research: The ASPIRE programme

In recent years, universities in the UK have increased efforts to promote diversity and equality in their institutions. Such efforts include establishing partnerships with schools and colleges in local communities (Russell Group, 2023), creating mentorship programmes (SHU, 2022), attempting to decolonise the curriculum (HEPI, 2020), funding research to address the ethnic minorities awarding gap (OFS, 2021), and providing ringed-fenced scholarships for Black and mixed heritage students (Sucharitkul and Windsor, 2021). These interventions are directly aimed at widening access and participation for under-represented groups. Nevertheless, there remains a significant amount of work to be done in supporting improvements in the progression and outcomes for minoritised students in universities, especially those from Black and mixed-Black ethnic backgrounds

Animal spirits, hubris, narcissism: Behavioural determinants of merger and acquisition outcomes

This paper draws upon the animal spirit, hubris, and narcissism theories to conduct an empirical study investigating the behavioural determinants influencing mergers and acquisitions (M&A). While M&A transactions have shown a trend of value destruction for acquiring firm shareholders, they have simultaneously demonstrated value enhancement for shareholders of the acquired firms. The repercussions of this value erosion extend beyond shareholders, impacting pension funds, employees, customers, suppliers, government tax revenues, and banks within the economy. Utilising a long-event window methodology, the research examines cumulative abnormal returns (CARs) for acquirers’ shareholders over a three-year post-completion period, focusing on Australian acquisitions from 1990 to 2006. The findings highlight animal spirit, hubris, and narcissism as significant behavioural determinants shaping M&A outcomes, thereby contributing to the ongoing discourse on hubris and hubris syndrome in M&A, with a suggestion that narcissism may be more prevalent than hubris. Additionally, the study identifies the joint tenure period of the Chairman and Chief Executive Officer (CEO) in the acquiring firm as a statistically significant factor contributing to acquiring firm shareholder value in M&A activities. Notably, a significantly negative correlation between CEO remuneration change and M&A outcomes is found. The paper recommends enhanced transparency for remuneration and nominations committees to address corporate governance issues raised by the study

Towards widening participation in PGR: the Aspire Model

In recent years, universities in the UK have increased efforts to promote diversity and equality in their institutions. Such efforts include establishing partnerships with schools and colleges in local communities (Russell Group, 2023), creating mentorship programmes (SHU, 2022), attempting to decolonise the curriculum (HEPI, 2020), funding research to address the ethnic minorities awarding gap (OFS, 2021), and providing ringed-fenced scholarships for Black and mixed heritage students (Sucharitkul and Windsor, 2021). These interventions are directly aimed at widening access and participation for under-represented groups. Nevertheless, there remains a significant amount of work to be done in supporting improvements in the progression and outcomes for minoritised students in universities, especially those from Black and mixed-Black ethnic backgrounds

Give me a hand, and I will thrive: how personalised mentorship is helping Black students progression

This paper examines personalised mentorship's disruptive role in enabling Black students' progression in the academy and industry. It focuses on the Accomplished Study Program in Research Excellence (ASPIRE), a unique intervention and an innovative approach designed to provide mentorship and well-being to Black and Black heritage students and improve their graduate outcomes and access to doctoral study. Drawing from the evaluation data of the first cohort of the programme and the broader literature on the attainment gap and underrepresentation of Black students in higher education, the paper examines the extent to which participation in ASPIRE leads to improved work-readiness of Black students to access doctoral level study and acquire jobs in the industry through personalised mentorship