International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

The designer of the comprehensive model to detect financial fraud in government and private organizations using the database

Document Type : Original Article

Authors
behzad rashidi 1
Ali Esmayeelzadeh 1
Amir Reza Keyghobadi 2
1 Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 Department of Industrial management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
10.30495/ijfma.2024.77962.2180
Abstract
This research focuses on the increasing occurrence of financial fraud in public and private companies in Iran and the crucial role of fraud detection in these organizations. A comprehensive model is designed and presented to address the issue of financial fraud detection. The primary objective of this study is to identify and propose appropriate solutions for detecting financial fraud utilizing the Grounded Theory approach. The research adopts a mixed-methods design (qualitative-quantitative). In the qualitative phase, interviews are conducted with 20 experts, followed by three stages of coding (open, axial, and selective) to identify concepts and categories related to fraud detection. Subsequently, in the quantitative phase, confirmatory factor analysis and structural equation modeling are employed to validate the proposed model. The findings reveal that factors such as characteristics of accountants, internal controls and monitoring mechanisms, financial evidence, legal environment, and organizational culture significantly influence fraud detection. This study concludes that the proposed model has the potential to mitigate financial fraud and enhance financial transparency within both public and private sector organizations.
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