Structural Equation Modelling (SEM) Analysis in Determining the Mediation Effect of Collapse Avoidance Assurance on Threat Appraisal and Intention in Forensic Accounting
The demand for forensic accounting is increasing, along with the fraud level. However, some firms are reluctant to use forensic accounting for fraud mitigation tool. This issue is due to fear to be found guilty and have to face legal consequences for any wrongdoing relates to the firm. This study implementing the element of fraud treat appraisal of Protection Motivation Theory (PMT) and collapse avoidance assurance of Forensic Accounting Theory to determine the intention of firms to use forensic accounting services. The finding shows that the threat appraisal factor has a significant effect on behavioural intention. Besides, the aspect of collapse avoidance significantly mediates and strengthen the effect of threat appraisal of fraud on the behavioural intention in using forensic accounting. The result indicates that firms are more willing to adopt forensic accounting after being assured that the forensic investigation output will only lead to corrective measures of the wrongdoing and not discipline the firm.