The role of accounting in conflicts resolution

Abstract

Purpose This study aims to examine an alternative use of accounting information and technology (forensic audit) for resolving conflicts between two government agents and consequently enhancing accountability in Nigeria. Design/methodology/approach The study adopts contextualised explanation of case study theorising. Data for the study were gathered from two primary documents: the forensic audit report of PricewaterhouseCoopers (PwC) and the report of the Senate Committee on Finance and Appropriation. The theory of mediation is used to illuminate the mediation process and its implication for accountability. Findings The study finds that the mediator (PwC) was able to resolve the dispute using different problem-solving techniques (data gathering and fact finding) of accounting and provide guidance on the necessary steps to be taken to enhance accountability. Whilst the disputants agreed to the audit firm’s findings, further actions to hold relevant parties accountable were not taken by the government. Accounting aids in realising accountability, but it is not the ultimate tool, as it operates within a host of other accountability infrastructures that subvert its impact. Research limitations/implications This study uses a single case to understand the role of accounting in conflicts resolution. Therefore, as a general limitation of a case study design, we do not generalize beyond the case examined in this study. Practical implications The study has implications for accounting practice in developing countries. Firstly, the paper finds that accounting is held in high esteem as having the ability to unravel mysteries through its problem-solving techniques. Secondly, professional accounting firms need to maintain a high level of competence and integrity to sustain this position. Thirdly, accounting can help answer the question “Who should be held accountable?” Originality/value The study examines a novel case of how accounting is used in resolving conflicts in a rare setting and in ensuring accountability over public funds.

Forensic accounting as a profession in Australia? A sociological perspective

“…The benefit of forensic accountants to society may also be seen in their role of facilitating resolutions to commercial and family disputes, enhancing public awareness of fraud risks and helping government agencies in solving vexed financial matters. This finding is consistent with many previous studies on forensic accounting’s role in society (Abdul-Baki, 2019; DiGabriele and Lohrey, 2016; Sahdan et al , 2020). This finding explains that forensic accounting services are directly related to people and organization problems.…”

“…One practitioner indicated that forensic accountants engage in family law services, which result in the prevention of “bankruptcy,” “[reduce dramatically divorces and] reduce family separations,” “stress” and, in some cases, prevention of “suicides cases” (P2). The forensic accountant can do so through mediation and arbitration effort (Abdul-Baki, 2019; Brennan, 2005). In addition, forensic accountants facilitate the resolution of commercial disputes by providing solid advice and accurate analysis to the individuals and companies in that process.…”

“…Forensic accounting is a multidimensional field of activity that encompasses various kinds of professional services (Abdul-Baki, 2019; Brennan, 2005; Crumbley, 2019). In forensic accounting literature, there is no agreement between researchers on a “precise definition” of forensic accounting (Sahdan et al , 2020, p. 384).…”

“…The importance of forensic accounting is not limited to its investigative role (Abdul-Baki, 2019; Nortje and Bredenkamp, 2020). As shown in the definition and scope section, forensic accounting is associated with legal and adversarial roles that also underscore the importance of forensic accounting (Akinbowale et al , 2020).…”

Divergence and convergence of salient stakeholders' perceptions toward forensic accounting education: importance, obstacles and pedagogies

“…Forensic accounting, described as a problem-solving tool by Prabowo (2021), requires adaption to changes and developments in practice. Investigation of fraud, litigation, valuation of businesses and information technology (IT) forensic accounting are among the topics covered in most forensic accounting courses, as noted by Abdul-Baki (2021), Elder and Yebba (2017), Honigsberg (2020), Jalilvand and Kostolansky (2016), Odia and Akpata (2021) and Rezaee and Wang (2019).…”