The Impact of Forensic Accounting on the Effectiveness of Fraud Detection in Private-Sector Banking and Merchandising Companies: Evidence From Sulaymaniyah City, Kurdistan Region, Iraq
Year: 2026
Type: article
Study design: Observational Study
Abstract: This study examines the impact of forensic accounting techniques, challenges, and accountants' skills on fraud detection effectiveness in the private sector of Sulaymaniyah City, Kurdistan Region of Iraq. The study employed a quantitative research design, with preliminary semi-structured interviews conducted to inform questionnaire development. In the qualitative phase, purposive sampling was used to interview eight forensic accountants with experience handling multiple fraud cases in Sulaymaniyah. Insights from these interviews guided the creation of a structured questionnaire, which was subsequently distributed to Seventy-four accounting professionals from private banks and merchandising firms for the main data collection. Data were analysed using SPSS Statistics 23, applying Cronbach's alpha to assess reliability, factor loading to validate constructs, and linear regression to test the hypotheses. The results showed that forensic accounting techniques, challenges, and professional skills each had a statistically significant positive effect on fraud detection effectiveness (R2 = 0.646, *p* < .001). Among these predictors, techniques had the strongest influence (β = .424), followed by challenges (β = .270) and skills (β = 0.226). The positive effect of challenges suggests that systemic barriers may prompt organizations to strengthen internal controls and adopt adaptive practices. The study underscores the need for structured forensic procedures, ongoing skill development, and context-specific approaches to strengthen fraud detection in transitional economies. These findings contribute to the limited literature on forensic accounting in the Kurdistan Region and underscore the need for future research on integrating advanced digital forensic tools alongside traditional practices to strengthen financial system resilience.
Author: Barham Khalid Hassan
Institution: Charmo University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7160487174
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