Investigative Accounting and Whistleblowing Systems: Their Role in Fraud Detection and Disclosure

Abstract

Fraud is a serious issue faced by both public and private sector organizations because it can cause financial losses, damage institutional reputation, and reduce stakeholder trust. In the context of modern organizational governance, fraud disclosure requires detection mechanisms that do not only rely on conventional audit procedures, but also more comprehensive approaches through the implementation of investigative accounting and whistleblowing systems. This study aims to analyze the relationship between investigative accounting and whistleblowing systems in enhancing the effectiveness of fraud disclosure. The research employs a Systematic Literature Review (SLR) method with a qualitative approach to various relevant scientific articles published within the last five years. The literature selection process is carried out through identification, screening, and analysis stages based on predefined inclusion and exclusion criteria. The findings show that investigative accounting plays an important role in tracing and substantiating indications of fraud through financial transaction analysis and the collection of investigative evidence. Meanwhile, the whistleblowing system functions as an internal reporting mechanism that provides early information regarding suspected fraud. The integration of both mechanisms has been proven to improve the effectiveness of fraud detection and disclosure, as well as strengthen the organization’s internal control system.