Integrating criminological theories in accounting and finance fraud research: A systematic literature review

Abstract

Fraud in accounting and finance poses a persistent threat to organizational integrity and economic stability, necessitating robust theoretical frameworks for effective detection and prevention. While traditional accounting literature predominantly addresses fraud through objective and quantitative lenses, this study argues for the integration of criminological theories to enhance the understanding of fraudulent behaviors. This systematic literature review examines the application of micro, macro, and integrated criminological theories within accounting and finance fraud research, synthesizing insights from 14 peer-reviewed studies using the Australian Business Deans Council (ABDC) list for filtering identified through a comprehensive search of the Scopus database. The review highlights the contributions of micro-level theories, such as Merton’s Strain Theory and Sutherland’s Differential Association Theory, in explaining individual motivations for fraud. It also explores macro-level frameworks, including Institutional Theory and Ecological Theory, which provide a broader perspective on societal and organizational influences. Integrated theories, such as Situational Action Theory and Routine Activity Theory, offer a holistic approach by linking individual predispositions with contextual factors. The findings reveal a critical gap between theoretical constructs and their practical application in accounting practices, particularly in audit procedures, compliance systems, and internal controls. This study calls for future research to bridge this gap by developing empirically validated frameworks that translate criminological insights into actionable anti-fraud strategies within corporate environments. By advancing interdisciplinary approaches, this research contributes to both academic discourse and practical methodologies for enhancing fraud risk management in accounting and finance.