Forensic accounting services and ethical financial practice in Nepalese organizations

Abstract

The purpose of this study is to investigate the impact of forensic accounting on the ethical financial practices of Nepalese organizations. The predictor variables are litigation support services, forensic data analysis, and ethical awareness, while the outcome variable of the study is ethical financial practices. This research employed a descriptive and causal relational research design to test the hypotheses. The population of the study consisted of respondents from the financial sector in Kathmandu. A total of 434 structured questionnaires were distributed as the primary data source, and 276 (63.59 percent) useful responses were received. The research adopted a purposive sampling technique for cross-sectional data collection. The study utilized descriptive statistics, correlation, and regression analysis, including Cronbach’s alpha, for data analysis. The findings revealed a positive association between litigation support services and ethical financial practices (r = 0.501, p < 0.05). Similarly, a strong positive and significant relationship was found between forensic data analysis and ethical financial practices (r = 0.704, p < 0.05). Additionally, a strong positive association was identified between ethical awareness and ethical financial practices (r = 0.611, p < 0.05). The results of this study can contribute to existing literature and serve as evidence for organizations, professionals, policymakers, practitioners, and other stakeholders.