The role of forensic accounting in improving the quality of auditing processes for financial statements within a governance framework

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Abstract

This paper aims to assess the role of forensic accounting in enhancing the quality of financial statement audits in Riyadh. Questionnaires were distributed to a sample of external auditors in Riyadh province in Saudi Arabia. The study revealed that there is a statistically significant relationship between the availability of forensic accounting services and the detection of cases of fraud and the illegal actions of the client. This includes verifying the continuity of the enterprise. In addition, there is a strong correlation between using the forensic accountant services and supporting the external auditing processes in the field, detecting fraud cases, detecting the illegal actions of the client, and verifying the continuity of the enterprise. The correlation value is near to one. The study concludes that forensic accountants must enhance their communication, interpersonal, critical thinking, accounting, auditing, and self-efficacy skills to improve efficiency. Academic and practical qualifications enhance the efficiency and effectiveness of forensic accounting services. The research recommends establishing an autonomous Saudi entity to supervise and accredit forensic accounting businesses. The research additionally recommends including forensic accounting in the curricula of Saudi institutions as an independent or associated subject.

Keywords: Forensic Accounting, Auditing Processes, Financial Statements, Saudi Arabia

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M4, M41

Received: 21.07.2025
Revised: 30.10.2025; 15.01.2026
Accepted: 09.02.2026
Published online: 12.02.2026

How to cite this paper: Osemy, A. Z. Z. (2026). The role of forensic accounting in improving the quality of auditing processes for financial statements within a governance framework. Journal of Governance and Regulation, 15(1), 278–288. https://doi.org/10.22495/jgrv15i1art26