The Relevance of Forensic Accounting for Detecting and Preventing Fraud in Emerging Economy like Nigeria

Abstract

The study investigated the relevance of forensic accounting for detecting and preventing fraud in emerging economy like Nigeria. This study is an ex-post facto and field survey type of research. The population size of this study cuts across the 12 money deposit banks in Nigeria. Emphasis was centered on professional chartered accountants and auditors in those banks in Edo State due to geographical coverage. It is upon the population size of 12 money deposit banks in Nigeria a consensus of all the banks forms the sample size of the study. While a judgmental sampling method was used in the selection of the professional accountants and auditors in banks. The research instrument that was employed in this study was questionnaire and interview. In addition, to ensure the reliability of the questionnaire used, a pre-test was carried out using the Cronbach-Alpha test. The statistical tool employed was descriptive statistics. The findings of the study revealed that forensic accounting qualifications, forensic accounting skills and forensic accounting education has positive influence in detecting economic and financial crime in Nigeria. Therefore, the study recommends that the relevance of forensic accounting in preventing and detecting fraud should be used in Nigeria to strengthen internal audit department. Also, forensic accounting courses should be included in the academic and professional curricula of Nigeria Universities and professional institutions to train and increase the awareness of forensic accounting in Nigeria.