Fraudulent Financial Reporting in the Gray Area of Accounting: A Systematic Literature Review and Future Research Directions
Year: 2025
Type: review
Study design: Systematic Review
Abstract: This study aims to review research on fraudulent financial reporting (FFR) in the grey area of accounting with a systematic literature review approach and bibliometrics analysis. The study was conducted on 74 research articles from the Scopus database. The gray area comprises discretionary accruals, real earnings management, and FFR detection models. This study synthesizes FFR research characteristics, topic developments, key research streams, and future research directions. There are differences in characteristics between research in the gray area and misconduct in the form of research subjects, research objectives, and countries where the research is conducted. The topic development began with utilizing financial ratios as detection tools until various FFR detection methods emerged. The key research streams encompass six main discussions. Several directions for future research, including investigations into the differences in FFR enforcement between developed and emerging countries, studies on real earnings management from behavioral perspectives, exploration of the novel detection methods, and meta-analysis on the Beneish M-score model. Several reviews of FFR have predominantly concentrated on fraudulent organizations, neglecting the exploration of the gray area. This research contributes to other researchers by providing a roadmap for FFR research in the gray area of accounting.
DOI: 10.46585/sp33011975
Authors: Falsa Dzaky Arifian, Anis Chariri
Institution: Diponegoro University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $215
OpenAlex ID: W4410898578