The Role of Whistleblowing System in Supporting Forensic Accounting for Disclosing Financial Fraud Reksa Jayengsari
Master of Accounting Bandung Islamic University
Abstract
Financial fraud is a serious threat to the integrity and accountability of organizations, both in the public and private sectors. In this case, the violation reporting system allows for early detection of potential fraud through the involvement of all elements of the organization, meaning that a whistleblowing system is needed by the company to prevent fraudulent acts. Whistleblowing systems and forensic accounting are becoming increasingly important in efforts to uncover and prevent fraud. How the whistleblowing system supports forensic accounting in disclosing financial fraud is examined conceptually in this study. This research was conducted by collecting and analyzing various scientific sources, such as journals, academic articles, and official institutional reports over the past five to ten years. This method is known as literature study. The results of the study show that the whistleblowing system functions as an early warning system that can trigger forensic accountants to conduct investigative audits. Factors such as whistleblower protection, organizational culture, and management commitment to follow up on reports greatly influence the performance of the whistleblowing system. Challenges and obstacles to implementing a whistleblowing system include fear of retaliation, lack of trust in the reporting system and minimal follow-up on whistleblower reports. Therefore, cooperation between forensic accounting and whistleblowing can improve the internal control system and increase the transparency and accountability of company finances. This study not only provides theoretical contributions to the development of forensic reporting and auditing systems, but also provides a basis for future empirical research
