Introducing Diploma of Investigative and Forensic Accounting: A Case Study in Lebanon

DIFA, Diploma of Investigative and Forensic Accounting Microinvest is gaining popularity because of its importance in dealing with corruptive enterprise practices and economic theft. However, the absence of Forensic Accounting (FA) continues to be observed in nations of opaque business practices. Furthermore, handiest few universities internationally are introducing DIFA, hence a chief work needs to be completed to shed the mild on the significance of the degree within the first place after which provide it as an authentic diploma with guides relating to FA whether in universities or economic establishments.

The essential subject lies in the fact that Forensic Accounting is neither provided in universities as a degree, nor at economic establishments to hit upon fraud and make criminal court docket reviews. In many universities of Canada and the United States, the DIFA, is being protected inside the curriculum with the intention to recruit new college students and offer abilities set for profession development through development of a specialised area of interest. One of the objectives of the Alliance for Excellence in Investigative and Forensic Accounting (Alliance), mounted with the aid of the Canadian Institute of Chartered Accountants (CICA), is to broaden and control a consultant certification application. This diploma is designed as a comprehensive application for a person who needs to practice in this location. CPA, CFA, CIA are examples of certificate granted in Lebanon, however, no degree is available related to Forensic Accounting. Therefore, it may be a diploma given in academic establishments that supply CPA or some other certification related to auditing or accounting.

Furthermore, the importance of adopting FA within the universities' accounting curriculum is highlighted specifically that its call for for it's far growing gradually. Such adoption has a big potential to enhance college students' competencies and competencies and might be used as a veritable resource from which fraud may be mitigated. Fresh graduates can as nicely gain the DIFA software that gives a broad range of information and skills to perform monetary investigations. This range consists of accounting, audit, earnings tax knowledge, fraud information, information of regulation and regulations of proof, an investigative mentality and vital skepticism, know-how of psychology and motivation, and robust communication abilities (Stott, 2005).

The program focuses on information and capabilities that may be great taught and tested in person: such as coping with a face-to-face meeting with a purchaser, interviewing capabilities, and attesting in court as an professional witness. DIFA supports accountants with the information and abilities needed to bridge the distance between existing quantification models and principles and one of a kind litigation contexts (Stott, 2005).

Based on descriptive statistics of survey effects conducted in Lebanon, being a rustic of opaque commercial enterprise practices, to pick out the certificate that a forensic accountant ought to possess confirmed that:

fifty nine.09% of the respondents concept that a forensic accountant ought to have a DIFA;

31.Eighty two% proposed that CPA is the needed certificate (Certified Public Accountant);

20.Ninety one% notion that CFA is the right one (Chartered Financial Analyst);

10.00% referred to different kinds of certification.

2.12% of the respondents did not discover it essential to have any certification to become a forensic accountant.

Furthermore, the relation between profession and the respondents' opinion about the styles of certifications that a forensic accountant should own become additionally studied. The following breakdown suggests the chances of respondents who proposed that DIFA is the crucial certification primarily based on activity profession.

Sixty nine.10% of the respondents working in banking or coverage

fifty one.60% of the respondents running in finance

72.70% of the respondents operating in education

eighty% of the respondents running in control

However, most of the respondents within the accounting field idea that CPA is the kind of certification that must be possessed by the forensic accountant with a seventy seven.10%. People operating in accounting typically generally tend to pursue a CPA degree for the assist it gives in this area.

In addition to the above, the relation between revel in and the respondents' opinion about the types of certification that a forensic accountant must possess changed into additionally studied. The effects, primarily based on individuals who pick DIFA as the needed certificate, had been as follows:

maximum respondents with extra than two years' revel in idea that DIFA is the wanted certification to exercise FA

51.90% of respondents with 2 years' revel in and much less concept that DIFA is the wished certification to exercise FA;

68.Eighty% between 2 and 6 years of revel in concept that DIFA is the wanted certification to exercise FA;

fifty five.Forty% of these with less than 2 years or no revel in at all notion that CPA is the kind of certification that need to be possessed with the aid of the forensic accountant.

Moreover, the surveys performed replied the query whether or not the respondents approve that the DIFA have to be blanketed in the Lebanese university packages. It demonstrates that:

97.88% of the respondents regular having a DIFA in the universities;

2.12% of them didn't receive having a DIFA in the universities;

This is especially essential on account that maximum of the Lebanese human beings are inside the level of pursuing their academic stages of which the very best percentage is reading finance.

Supporting the outcomes of the surveys, interviews have been additionally conducted to understand approximately the form of certificate that a FA should keep. Most respondents accredited that there should be a certification granted to a forensic accountant. This may be illustrated via what the accounting manager at "Malia Group Multinational Company" (with 5 years of enjoy) said by using saying: "It need to study in universities and the business proprietors have to request in their vacancies for an accountant with a certain certifications along with DIFA"

The interviewees' answers pressured that it have to be delivered in all universities and academic institutions leading to a certificates (DIFA), and candidates should have know-how and a diploma in accounting and auditing. As one interviewee, a partner at Bureau d'Analyse et de Revision Comptable (BARC) for auditing and taxation (with 33-36 years of experience) puts it: "It is a way to save you corruption this is why I specify that it have to be trained in universities due to the fact I strongly agree that it's miles applied". Relating interviewees' guidelines to consist of FA in university programs, the head of audit department at "professional auditors" (eleven years of enjoy) states: "FA is crucial for dishonest methods, it may be delivered in universities".

Interviewees gave different responses and pointers about what is wanted to perform Forensic Accounting. One interviewee coded that: "There are precise teaching applications along with CPA and there are special packages for certified monetary forensic and DIFA"(Partner of an audit and taxation company "Bureau d'Analyse et de Revision Comptable with 33-36 years of enjoy). Thus interviewees notion that a forensic accountant ought to be an experienced auditor or has a deep know-how in legal guidelines; the type of certification wanted can be CPA (certified public accountant), or have a license in accounting, a certification or a diploma from the LACPA (Lebanese Association of Certified Public Accounting). For example the head of the audit branch at professional Auditors indicated that: "Of direction you want to have a license in accounting and maybe CPA, for example in our LACPA Lebanese association of certifies public accounting maybe you can get this diploma there".

Other interviewees said that FA ought to manifestly have a diploma in accounting besides the wanted enjoy to be able to stumble on suspicious acts, or have a BA degree with troubles associated with fraud and disclosure, CPA is a plus, or maybe have CFE. A lecturer and previous partner at KMPG (with 15 to 17 years of experience) commented on this remember with the aid of saying: "On the instructional stage the quality certification could be CFE if every person desires to be concerned in that topic he ought to pass for such certification specialised in fraud exam".

If every body seeks to be worried in this area he must cross for such certification specialised in fraud exam. Others stated that FA already has CPA or long enjoy. Furthermore, a forensic accountant, as an auditor have said: "must have investigative skills and also you need to do the right education to be able to be ready". Other interviewees also noted that a forensic accountant should have investigative capabilities and undergo right education which will be competent or be a licensed accountant with sure talents and revel in; the certifications wanted are an accounting diploma or a law degree because the forensic accountant may should testify in courts. Or have a proper schooling in fraud; certifications might be CPA or CFE.

Another crucial announcement coded from the interviewees is that "To grow to be a forensic accountant, you need to be a certified accountant with certain capabilities and experience, the certifications needed are accounting diploma or law diploma because the forensic accountant may want to testify in courts" (Accounting Manager at Malia Group, with 8 years of experience).

In different words, FA accountants must be accountants in the first area, no specialized certification, however need to be concerned in schooling workshops or seminars that assist beautify his know-how and abilities, or be an accountant or audit with knowledge approximately relevant laws. An accounting degree is enough but it'd be better if he could take publications in investigative accounting if they're to be had in Lebanon. In addition they have to have a diploma in accounting with a profound experience and analytical competencies; a certification could be a plus such as CPA or every other certification in accounting and auditing area.

Interviewees also mentioned that the certification that could be held by forensic accountant to exercise FA is CPA on the grounds that it's miles well known due to the fact it's miles available in lots of instructional establishments. Almost all respondents conferred a excessive diploma of significance for introducing FA in the instructional quarter within the financially corrupted nations.

Almost all respondents believed that FA must be trained in universities as a route or a graduate fundamental or as case research in an audit related path. Suggestions also covered that FA will be a forte in instructional institutions that supply CPA or any other certification associated with auditing or accounting.

Respondents and interviewees additionally cautioned introducing FA via workshops and seminars with the help of professionals and skillful forensic accountants. They also showed reputation for on-line academic packages seeing that DIFA isn't always to be had in most financially corrupted countries while it's miles available inside the USA. Therefore on-line training should shorten the gap to folks that can't leave work and are interested to be specialized in forensic accounting.

The contributors also endorsed that the employees and bosses, who are chargeable for the financials of the agency, ought to be knowledgeable and submitted to an extensive education to develop their capabilities to permit them to stumble on fraudulent activities within the organization.

In sum, DIFA is designed to provide a large variety of know-how and capabilities to carry out monetary investigations. Employee and control fraud, theft, embezzlement, and different monetary crimes are increasing, therefore accounting and auditing personnel ought to have training and abilities to understand the ones crimes. In addition, excessive-visibility corporate scandals, together with Enron and WorldCom, exhibit the need to better prepare access-degree accounting graduates and training CPAs within the regions of fraud prevention, deterrence, detection, investigation, and remediation, Houck et al., (2006). Universities and educational establishments, as will be mentioned afterward, play a essential function in introducing DIFA and other FA related guides, certificate and diplomas. These formal certificate can deepen the students' expertise and sharpen their abilities in Forensic Accounting via trainings under the supervision of an skilled forensic accountant, collaborating in diverse worldwide conferences, reading applicable journals, books and different literature.

Universities:

Universities play a constituent role in introducing FA considering that they are able to control the materials that might be trained to the scholars. Introducing it as a degree, Forensic Accounting can be one of the majors that exist in universities; the examine proved that there are a few educators who're knowledgeable inside the subject when you consider that most of them did their doctorate diploma in the USA and UK. Therefore it could be an undergraduate or graduate degree in the universities.

Concerning the publications, Forensic Accounting will be given as a course within the college rather than being a major; it may be protected as a part of accounting, CCE, Law or any other foremost however custom designed for every area of expertise.

Regarding the case studies, in case FA is not taken into consideration as a main or given as a path, it can be highlighted through case research wherein the scholars examine many international fraudulent cases and the techniques and the logics that have been utilized by forensic accountants to detect and reveal the fraud.

Educational Institutions:

Educational Institutions whole the position of the colleges by overlaying the space whilst a number of the publications and stages aren't granted by the colleges; they would be to be had in educational institutes or academies. The fundamental path of movements that would be taken with the aid of those establishments is granting DIFA which have to be an respectable certification given to the specialists that want to exercise Forensic Accounting in their international locations. Yearly or monthly classes need to be introduced via specialized method of marketing. Moreover, the certification might be incorporation with the authorities where licensed accountants working in their departments and institutions could be despatched to acquire it from a reputable academic institution. This certificates have to be formally identified and authorized from the ministry of schooling, finance, and justice. The syndicate have to lease qualified forensic accountants able to studying, reading, suggesting rules, and education others.