The aims of this study are two-fold. The first is to examine the effect of forensic accounting on fraud prevention in Iraq and the second is to find the impact of the moderating role of internal control effectiveness on the relationship between forensic accounting and fraud prevention in Iraq. Fraudulent financial reporting is used as a proxy to measure fraud prevention. Meanwhile, forensic accounting competence, forensic accounting techniques, and proactive fraud audit are used as proxies for forensic accounting. In addition, effective internal control and internal control challenges are used as proxies for effective internal control. This study utilizes the survey method to gather data from companies listed on the Iraqi Stock Exchange by distributing a questionnaire to CEO, CFO, CAC, and IA as the companies‘ representatives. Four hundred and forty surveys were distributed, but only 238 answers were collected, and 216 surveys were analysed as final data for this study. The data was analysed by using a structural equation model and utilising SMART-PLS and SPSS (version 26) software. This study used Iraq as a case study since it provides a new insight into the accounting and financial literature in the context of an emerging market economy, representing one of the MENA countries and with the backdrop of an Iraq-specific unstable economic situation. The results of this study revealed that there are significant and direct effects of forensic accounting on fraud prevention in the Iraq's listed companies. In particular, forensic accounting competence and proactive fraud audit positively influence fraud prevention. However, forensic accounting techniques indicated insignificant results in fraud prevention. Based on the second objective, this study proved that internal control effectiveness moderates the relationship between forensic accounting and fraud prevention. However, internal control challenges did not provide any significant results. Thus, the moderating role of effective internal control is partially accepted. In conclusion, the study recommends that it is essential for the private sector to use forensic accounting to deter fraud in all sectors of business and spotlight internal control effectiveness as an important function to increase the effectiveness of forensic accounting on fraud prevention.
