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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.

“Conducts personal interviews. it shows that greater numbers of the respondents were Certified Public Accountants with 82. The data shows that 56.5 Years of Employment. and 5 or 21. two were lawyers and two were paralegals each with 8. Based on the data. and 13. With a 3.93 general weighted mean.4 percent were from 5-15. 17. It shows that majority of the respondents were female. .” “considers gathered information as primary source of data. It was found out that of the 23 respondents. Strongly Agree and Agree. 15 or 65.1 percent were from legal division.2 percent were female and 8 or 34.” and “interviews and interrogates under law enforcement authority in data gathering” had a verbal interpretation of Agree. the respondents Agree. 1.7 percent of the respondents were from investigation division. 12 or 54. 87 1. respectively.8 percent were male. 1. 2. 6 or 26.5 percent of the respondents were working for the BIR for less than five years.4 Profession. Overall Perception of the Bureau of Internal Revenue on Forensic Accounting as an Investigation Method on Tax Fraud Based in terms of: 2.0 percent each from bracket 15-25 and 25 above. It was found out that of the 23 respondents.7 percent.6 percent.3 Division.1 Interview and Interrogation.2 percent were from the assessment division. 1.2 Sex.

It received an Agree verbal interpretation with a 3.2 Background Research. current employees and former employees as confidential informants” received an Agree.4 Confidential Informants. Agree were given to “performs undercover operations under a recommendation” and “executes undercover operations to obtain first-hand data.3 Electronic and Physical Surveillance. hence. 88 2.5 Undercover. “Uses electronic surveillance such as internet and e-mail. 2. “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.55. letters.96 general weighted mean. “Collects information from public databases.” and “considers gathered information as an independent verification against oral claims made by respective parties” share the same interpretation of Strongly Agree.” “uses physical surveillance to verify taxpayers’ addresses” and “categorizes information from surveillance into objective and subjective indicators” share the same interpretation of Agree. The general weighted mean was 4.” “inspects corporate records of taxpayers. It was interpreted as Strongly Agree with a general weighted mean of 4.” However. 2. 2. “deliberately deceives target suspect to gain information that can be converted to evidence” was . gaining a Strongly Agree interpretation.52.

89 rated Somewhat Agree only.55. the parameter also gained a Strongly Agree evidenced by the 4.” “executes extensive investigatory procedures such as fingerprint analysis.55 general weighted mean. Sex. It was agreed on by the respondents as it had resulted to a 3. Individually. “Compares/Contrasts pattern sensitive data measures to trace evidence back to a source. percentage method and unit and value method. “physically examines possible fictitious documents. it was interpreted as Agree.49. 2. expenditures method. ink sampling and document dating.” and “reviews known industry fraud schemes” were all interpreted with Strongly Agree.” and “relies on computer forensics such as hard disk imaging. 3. net worth method.” “uses different accounting methods such as vertical/horizontal analysis. Profession and Years of Employment . 2.6 Laboratory Analysis. Agree and Agree. Profile of the Respondents by Division in terms of Age. To sum up.7 Analysis of Financial Transactions.86 general weighted mean. respectively. the respondents perceived Background Research and Analysis of Financial Transactions to be the most useful after gathering a general weighted mean of 4. with a general weighted mean of 3. retrieving erased files and usage of computer software to analyze data” received Strongly Agree. therefore. forgeries. Overall.

91.3 Legal. . and 8. 3.7% were from 31-35. 50 percent were from 41 above.2.1 Investigation. 16.3 percent had been working for 5 to 15 years.4 Years of Employment 3.3 percent. 3. Lawyers.3.2.3 percent were from 36-40 and 41 above. 60% were male. 90 3. 50 percent were from 18-25. 3.1. 40 percent were female.7 percent of the respondents had been working for not more than 5 years and 8.1 Assessment.1 Assessment. 58.3.3 percent were female. 33.2 Sex 3. All respondents from this division were Certified Public Accountants. 3.7 percent were male.3 percent were from 36-40. 100 percent were female.2 Legal.1.3 Profession 3.1.3 Legal.3 percent were from 26-30.2 Investigation. 33. 100 percent were aged 41 above.4. 3. 3.1 Assessment. Same as Assessment Division all respondents were Certified Public Accountant. Paralegals and Certified Public Accountants have an equal percentage of 33.2 Investigation. 3. 3.1 Age 3. 41. 3.2.1 Assessment.3.

00 and 5.1 Assessment Division.4.01 to 25. 91 3.09 general weighted average.25.01 above with 40 percent.2 Investigation.01 to 25. Confidential Informants with average mean of 4.27.3 Legal Division. Perceived with Agree having a 4.01-15. 1.7 percent. Brackets below 5. 3. A 6.32% on Electronic and Physical Surveillance. According to the data.00 and 25. 4. 3. the overall interpretation was Strongly Agree with 4.80 and lowest mean was Laboratory Analysis with 3.00 with 40 percent and 25.2 Investigation Division. 4. Having the highest mean was Background Research with average mean of 4. Receiving the highest mean was Background Research with average mean of 4.01 to 15.00 with 20 percent.58 had been rated as the most useful while Undercover was the least with 3.3 percent and 15.14% on Undercover. and Analysis on .06.34 general weighted average.61 and lowest mean was Undercover with 4.3 Legal. Respondents ranged from 5. 15.00 had a percentage of 33.4. The overall interpretation was Agree. Background Research with 4.01 and above has a percentage of 16.16% difference was present from results obtained from Assessment Division on Interview and Interrogation. 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 4.12%.

there was no significant difference.1 Age. Although. The researchers failed to reject the hypothesis. Undercover. Based on the data gathered the researchers failed to reject the hypothesis. Laboratory Analysis of Investigation Division gained 16.4 Profession. having significant differences. The hypothesis was not rejected. Result shows that the researcher failed to reject the hypothesis therefore there is no significant difference on their perception. there was no significant differences on their perception as to their profession. as a result. Analysis of Variance on the Significant Difference on the Respondents’ Perception on Forensic Accounting as an Investigation Method in terms of Different Parameters 5. hence. hence. 92 Financial Transactions with 2.59% and the Confidential Informants from Legal Division with 3. thus. 5. Undercover had been rejected. However. Moreover. These are derived when lowest mean is compared to the median of the general weighted means of all divisions within the similar parameter. 5. 5.2 Sex. 5.01%. again. produced an outcome with a significant difference.3 Division. there was no significant difference in each item on their perception. .09%.

According to the data. hence. the researchers failed to reject the hypothesis.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. there was no significant differences on their perception as to their years of employment. the researchers came up with the following conclusions: 1. With a general weighted mean of 4. The respondent perceived forensic accounting as to their division: 3.5 Years of Employment. 93 5. 3. . Certified Public Accountant and have been employed for not more than 5 years. 3. Conclusions Based on the findings.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. 2. they “agree” with forensic accounting as an investigation method on tax fraud. 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.12.

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. division. 4. sex. For the Bureau of Internal Revenue. 94 3. profession and years of employment. 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. the researchers recommend the following for the improvement of forensic accounting as an investigation method of Bureau of Internal Revenue. 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. . 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.