Forensic Accounting and Fraud: Capability and Competence Requirements in Malaysia

The 2011 Global Economic Crime Survey instituted by PricewaterhouseCoopers confirms the economic crime in Malaysia to be on the increase and, therefore, requ ires immediate attention to stem the tides. In anti cipation of the challenges occasioned due to a shift from the modif ied cash basis to the accrual basis of accounting, the Malaysian State’s determination to move from a developing nat ion to a developed nation and to be ranked among th e first 10 in 2020, this paper presents the need for forensic accountant and auditor capability (i.e., mindset an d skills) on forensic accountant and auditor competence (i.e., t ask performance fraud risk assessment (TPFRA)) in the Malaysian public sector. It also draws the attentio n of the users of public sector accountants and aud itors to the understanding of fraud mechanisms and how to deal with fraudsters. The population of this study compri sed the accountants and auditors in the office of the Accou ntant General and Auditor General of Malaysia. The objective of this paper is to investigate the competence require ments of accountants and auditors in the effective and efficient utilization of capability requirements, which have the potentials to usher in the best global practice s in fighting fraud in the Malaysian public sector.