– Forensic Accountant: A Panacea to Fraud Detection –
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ABSTRACT
The study examined the role of as a panacea to fraud detection adopting some selected quoted companies in Nigeria as my case study. The study aimed at investigating how fraud can be detected and controlled in companies as well as how the internal control system and financial reporting quality can be improved in companies through the forensic accountant.
Samples were drawn from the employees of Julius Berger plc, PZ Nigeria plc and UAC foods plc in five departments of the companies using convenience non-probability sampling method. The hypotheses formulated were tested using chi-square test.
From the analysis carried out, it was found out that the forensic accountant can detect fraudulent activities in companies as well as control the activities. The study thus concludes that in other for companies to reduce their rate of financial irregularities and be financially efficient, the need for a forensic accountant is important
TABLE OF CONTENTS
Title page………………………………………………………………………………………………………………I
Approval page………………………………………………………………………………………………………II
Declaration page………………………………………………………………………………………………….III
Dedication page……………………………………………………………………………………………………IV
Certification page…………………………………………………………………………………………………..V
Acknowledgements………………………………………………………………………………………………..VI
Table of contents………………………………………………………………………………………………….VII
List of table…………………………………………………………………………………………………………XII
Abstract…………………………………………………………………………………….………….XIV
Chapter One: Introduction
1.1 Background to the Study……………………………………………………………………………….1
1.2 Statement of the Problem………………………………………………………………………………5
1.3 Objectives of the Study…………………………………………………………………………………6
1.4 Research Questions………………………………………………………………………………………6
1.5 Statement of research Hypothesis………………………………………………………………….7
1.6 Significance of the study……………………………………………………………………………….8
1.7 Scope of the Study……………………………………………………………………………………….8
1.8 Limitations of the study………………………………………………………………………………..9
1.9 Organization structure of the study………………………………………………………………..9
1.10 Operational definition of Terms………………………………………………………………….10
Chapter Two: Literature Review
2.1 Introduction…………………………………………………………………………………………….11
2.2 conceptual framework……………………………………………………………………………….11
2.2.1 Fraud and errors……………………………………………………………………………………….11
2.2.2 Types of fraud…………………………………………………………………………………………..12
2.2.3 Causes of fraud…………………………………………………………………………………………13
2.2.4 Factors influencing the existence of fraud and errors…………………………………….14
2.2.5 Why people commit fraud………………………………………………………………………….14
2.2.6 Forensic accounting………………………………………………………………………16
2.2.7 Evolution of forensic accounting…………………………………………………………16
2.2.8 Characteristics and skills of a forensic accountant………………………………………..20
2.2.9 Significances and relevance of forensic accountant………….………………….23
2.2.10 Forensic accounting objective……………….…………………………………….24
2.2.11 Forensic accounting technique………………….……..…………………….…..25
2.2.11.1 Interview technique ……………………………….……………………………25
2.2.11.2 Data mining with computers …………………………………….………..…….26
2.2.11.3 Document review strategy …………………………………..…………….…… 27
2.2.12 Advantages and disadvantages of forensic accounting………….………..…..…28
2.2.12.1 Advantages of forensic accounting…………………….…………….….…..….28
2.2.12.2 Disadvantages of forensic accounting..………………..……………………..…29
2.3 Theoretical framework….……………………………………………………….……30
2.3.1 Fraud triangle theory………..…………………………………………………….…30
2.3.2. White collar crime …………….……………………………………………………31
2.3.3 Fraud diamond theory……………….…………………………….………………..32
2.4 Empirical Review………..………………….………………………………..……….33
Chapter Three: Methodology
3.0 Introduction…………………………………………………………………………………………….. 49
3.1 Research design…………………………………………………………………………………………49
3.2 Research Population…………………………………………………………………………………..49
3.3 Sample and sampling Techniques……………………………………………………………….50
3.4 Research instrument…………………………………………………………………………………50
3.5 Validity and Reliability Research Instrument………………………………………………50
3.6 Data Collection Technique……………………………………………………………………….50
3.7 Data Analysis Techniques………………………………………………………………………..51
Chapter Four: Data Presentation and Analysis
4.1 Introduction…………………………………………………………………………………………..52
4.2 Analysis of data collected……………………………………………………………………….52
4.2.1 Analysis of demographic characteristics of respondents…………………………….52
4.2.2 Analysis of data……………………………………….………………….…….58
4.2.3 Examining the possibility of detecting the occurrence of financial fraud cases…
…………………….…………………………………………………………….58
4.2.4 Evaluating the extent of the influence of forensic accountant in financial fraud
control…………………………………………………………………….……..61
4.2.5 Investigating the adequacy of internal control system of the company……..…64
4.2.6 Ascertaining the difference between forensic accountant and external
auditors…………………………………………………………………………66
4.2.7 Ascertaining the contribution of forensic accounting to improving the quality of financial
reporting……………..…………………………………………………….……68
4.2.8 Analysis of chi square statistical test……………………………………………70
4.2.8.1 Test of hypothesis one………………………………………………………….70
4.2.8.2 Test of hypothesis two…………………………………………………………73
4.2.8.3 Test of hypothesis three…………………………………………………………75
4.2.8.4 Test of hypothesis four………………………………………………………….77
4.2.8.5 Test of hypothesis five…………………………………………………………..79
4.3 Description of research instrument used……………………………………………80
4.4 Summary of data analysis…………………………………………………………..81
Chapter Five: Summary, conclusion and Recommendations
5.1 Summary of Findings……………………………………………………………………………….82
5.2 Conclusion………………………………………………………………………………………………83
5.3 Recommendations…………………………………………………………………………………….84
5.4 contribution to knowledge and Suggestions for Further Studies……………………..85
References………………………………………………………………………………………………………….86
Appendix one……………………………………………………………………………………………………..89
Appendix two ……………………………………………………………………………..90
INTRODUCTION
is a big problem globally and it is of a great concern to the developing nations. Financial irregularities are so common and serious that fraud and corruptions is gradually becoming a way of life and almost every individual cannot be free or clean of it.
Individuals get involved in fraud and corrupt practices according to their capacity of office. No money is entirely free as every naira and kobo has it legal use which consequently means that any form of misuse will negatively have an effect on where it ought to be used.
This effect can be direct or indirect on companies or the nation at large. Individuals and companies affected negatively by the will want to seek redress by using different institutions such as the police and the law court.
Hence whatsoever an investigator wishes to do will not be complete if the extent to which the affected companies are not quantified. This and other pecuniary areas are where the service of the expert “forensic accountant” is being engaged in for a long time worldwide and recently in Nigeria.
evolved as a result of certain emerging fraud related cases. Forensic accounting encapsulates all other investigation related areas in uncovering . It is referred to as the tripartite practice of utilizing auditing, accounting and investigative skill to assist in legal matters. Modugu & Anyaduba (2013).
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StudentsandScholarship Team.