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CHAPTER 4

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter summarizes the findings of the study, conclusions and

recommendations based on the conclusions made.

Summary of Findings

This study entitled Forensic Accounting as an Investigation Method on Tax

Fraud as Perceived by the Bureau of Internal Revenue, Delta, Quezon City,

Calendar Year 2016 has a total percentage of respondents which was equivalent

to 23 or 37.70 percent of the total number of field workers on Assessment,

Investigation and Legal division of Bureau of Internal Revenue – Revenue

Region 7. The responses obtained from the questionnaire have been tallied,

computed and tabulated.

With respect to the result obtained from the interpretation and analysis of

data, hereunder are the findings the researchers have made:

1. Frequency, Percentage and Rank Distribution of the Respondents in terms of:

1.1 Age. The data revealed that 34.8 percent of the respondents came

from 41 above age bracket, 26.1 percent from below 25, 17.4 percent

from 26-30, 13.0 percent from 36-40 and 8.7 from 31-35.

17. two were lawyers and two were paralegals each with 8.6 percent. 1. and 5 or 21.3 Division.5 Years of Employment.2 Sex.0 percent each from bracket 15-25 and 25 above. 15 or 65.1 Interview and Interrogation. 87 1.93 general weighted mean. 2.5 percent of the respondents were working for the BIR for less than five years. 12 or 54. the respondents Agree. Strongly Agree and Agree. It was found out that of the 23 respondents. and 13. It was found out that of the 23 respondents.4 percent were from 5-15.” and “interviews and interrogates under law enforcement authority in data gathering” had a verbal interpretation of Agree. it shows that greater numbers of the respondents were Certified Public Accountants with 82. Overall Perception of the Bureau of Internal Revenue on Forensic Accounting as an Investigation Method on Tax Fraud Based in terms of: 2.4 Profession. It shows that majority of the respondents were female.8 percent were male.7 percent of the respondents were from investigation division. 6 or 26. 1. 1. The data shows that 56. With a 3. respectively.1 percent were from legal division. “Conducts personal interviews. .2 percent were from the assessment division. Based on the data.7 percent.2 percent were female and 8 or 34.” “considers gathered information as primary source of data.

The general weighted mean was 4. letters. 2.” “uses physical surveillance to verify taxpayers’ addresses” and “categorizes information from surveillance into objective and subjective indicators” share the same interpretation of Agree.4 Confidential Informants. 2. It was interpreted as Strongly Agree with a general weighted mean of 4. 2.55.” However.2 Background Research. gaining a Strongly Agree interpretation. 88 2. “deliberately deceives target suspect to gain information that can be converted to evidence” was . hence.52.3 Electronic and Physical Surveillance. “Uses professional skepticism in assessing information” and “weighs the value of the evidence provided against the possibility that it may be false or cannot be proven” both received Strongly Agree while “uses hotlines. Agree were given to “performs undercover operations under a recommendation” and “executes undercover operations to obtain first-hand data. current employees and former employees as confidential informants” received an Agree.” and “considers gathered information as an independent verification against oral claims made by respective parties” share the same interpretation of Strongly Agree. “Collects information from public databases. “Uses electronic surveillance such as internet and e-mail.” “inspects corporate records of taxpayers.5 Undercover. It received an Agree verbal interpretation with a 3.96 general weighted mean.

Overall.” and “relies on computer forensics such as hard disk imaging. 3. ink sampling and document dating. the respondents perceived Background Research and Analysis of Financial Transactions to be the most useful after gathering a general weighted mean of 4. the parameter also gained a Strongly Agree evidenced by the 4.55. 89 rated Somewhat Agree only. Profession and Years of Employment . therefore. It was agreed on by the respondents as it had resulted to a 3. To sum up.86 general weighted mean.49.6 Laboratory Analysis. it was interpreted as Agree. percentage method and unit and value method. Agree and Agree.55 general weighted mean.” “executes extensive investigatory procedures such as fingerprint analysis. 2. “physically examines possible fictitious documents.” “uses different accounting methods such as vertical/horizontal analysis. expenditures method. Individually. “Compares/Contrasts pattern sensitive data measures to trace evidence back to a source. forgeries. net worth method. Profile of the Respondents by Division in terms of Age.7 Analysis of Financial Transactions. 2. retrieving erased files and usage of computer software to analyze data” received Strongly Agree. respectively.” and “reviews known industry fraud schemes” were all interpreted with Strongly Agree. with a general weighted mean of 3. Sex.

4.2 Sex 3.2 Legal. 3.7 percent of the respondents had been working for not more than 5 years and 8. 40 percent were female. 3. 3. 50 percent were from 18-25. 100 percent were aged 41 above. 3.1 Assessment.1 Age 3.2.3.1. All respondents from this division were Certified Public Accountants.3 percent were from 26-30. . 58.3 Legal.3 percent were from 36-40. 90 3. 41. 3. 3. 60% were male. Paralegals and Certified Public Accountants have an equal percentage of 33.1 Assessment. 3. and 8.3 percent. Same as Assessment Division all respondents were Certified Public Accountant.7 percent were male.3 Profession 3.1 Assessment.1. 33.3.7% were from 31-35.4 Years of Employment 3. 3.2 Investigation. 91.2 Investigation. 3. Lawyers. 33.1.3.3 percent were female.3 Legal.3 percent had been working for 5 to 15 years. 50 percent were from 41 above.2.1 Assessment. 16.1 Investigation.3 percent were from 36-40 and 41 above.2. 100 percent were female.

00 with 40 percent and 25. The overall interpretation was Agree. 4.09 general weighted average. 4 Perception of the Bureau of Internal Revenue as to Division on Forensic Accounting as an Investigation Method on Tax Fraud in terms of Different Parameters 4.3 Legal Division.32% on Electronic and Physical Surveillance. 3.14% on Undercover.01 above with 40 percent.06. and Analysis on .00 had a percentage of 33.1 Assessment Division.7 percent. Receiving the highest mean was Background Research with average mean of 4. Background Research with 4.34 general weighted average.25. the overall interpretation was Strongly Agree with 4.58 had been rated as the most useful while Undercover was the least with 3.12%.00 and 5.01 to 15. Having the highest mean was Background Research with average mean of 4.01-15.3 percent and 15. Perceived with Agree having a 4.3 Legal. 91 3.4.80 and lowest mean was Laboratory Analysis with 3. 1.4.00 and 25.00 with 20 percent. 4.2 Investigation. Confidential Informants with average mean of 4.61 and lowest mean was Undercover with 4. 15.16% difference was present from results obtained from Assessment Division on Interview and Interrogation. Respondents ranged from 5.01 to 25. Brackets below 5. According to the data. 3.01 to 25.2 Investigation Division.01 and above has a percentage of 16. A 6.27.

there was no significant difference in each item on their perception. 92 Financial Transactions with 2.3 Division. Undercover had been rejected. These are derived when lowest mean is compared to the median of the general weighted means of all divisions within the similar parameter.2 Sex. Undercover. thus. 5. having significant differences. The researchers failed to reject the hypothesis. there was no significant differences on their perception as to their profession.01%. Although.1 Age.59% and the Confidential Informants from Legal Division with 3. hence. 5. The hypothesis was not rejected. . again. Based on the data gathered the researchers failed to reject the hypothesis. 5. However.09%. there was no significant difference. 5. produced an outcome with a significant difference. Analysis of Variance on the Significant Difference on the Respondents’ Perception on Forensic Accounting as an Investigation Method in terms of Different Parameters 5. Moreover. Laboratory Analysis of Investigation Division gained 16. Result shows that the researcher failed to reject the hypothesis therefore there is no significant difference on their perception. hence.4 Profession. as a result.

2 The respondents from Investigation Division “strongly agree” with forensic accounting as an investigation method on tax fraud and perceived Analysis of Financial Transactions as the most useful and Laboratory Analysis as the least. The respondent perceived forensic accounting as to their division: 3. there was no significant differences on their perception as to their years of employment. 3. . Conclusions Based on the findings. 2. The respondents who were employees of the Bureau of Internal Revenue who were involved in dealing with tax fraud were mostly under age group of 40 above categorized as female. they “agree” with forensic accounting as an investigation method on tax fraud. According to the data. 3.12. hence. 93 5.1 The respondents from Assessment Division “agree” with forensic accounting as an investigation method on tax fraud and perceived Confidential Informants as the most useful and Undercover as the least. the researchers came up with the following conclusions: 1. the researchers failed to reject the hypothesis. With a general weighted mean of 4. Certified Public Accountant and have been employed for not more than 5 years.5 Years of Employment.

. 94 3. There was no significant difference on the overall perception of the respondents on forensic accounting as an investigation method on tax fraud in terms of age. division. the researchers recommend the following for the improvement of forensic accounting as an investigation method of Bureau of Internal Revenue. For the Bureau of Internal Revenue. sex. 4. profession and years of employment. they may intensify division campaign and they may create plantilla items for forensic accountants and forensic examiners to have separation of duties against the divisions that had been established by the Bureau of Internal Revenue especially those divisions that handle tax fraud cases. Recommendations Based in the conclusions drawn.3 The respondents from Legal Division “strongly agree” with forensic accounting as an investigation method on tax fraud and perceived Analysis of Financial Transactions as the most useful and Undercover as the least. But there was a significant difference in the parameter Undercover on the respondents’ perception of forensic accounting as an investigation method on tax fraud in terms of age and sex.