A CONCEPTUAL FRAMEWORK: FORENSIC ACCOUNTING AND CORPORATE GOVERNANCE MATURITY

Abstract

Corporate governance maturity can be achieved when fraud within the organizations are mitigated and controlled. These frauds and related activities have created the expectation gap and means to fulfill this gap is the evaluation of mature corporate governance and inclusion of forensic accounting as a system of governance management. This paper concentrates towards integrating related literature and empirical research to broaden the proposed capacities of forensic accounting on corporate governance maturity specifically for the public listed companies. This paper will identify the two major roles of forensic accounting namely preventive and detective roles. This paper also suggests that fraud risk assessment poses a mediating role between forensic accounting and corporate governance maturity by linking agency theory, fraud triangle theory, and path dependence theory. This paper recommends and stresses a promising proposition for future research and will also assist regulators and organizations to formulate or update their codes and policies.