Financial Statement Fraud Detection and Investigation in Digital Environment

Abstract

This chapter discusses some of the stages involved in detecting and investigating financial statement fraud in the digital environment. It emphasizes the human element aspects – the fraudster and the forensic investigator, their skills and capability. The explanation focuses specifically on the context of financial statement fraud detection and investigation which requires the accounting knowledge of the investigator. It also highlights the importance of the investigator to be a skeptic and have an inquiring mind of who had the opportunity to perpetuate the fraud, how the fraud could have been perpetrated, and the motive(s) to do so.