ARTIFICIAL INTELLIGENCE IN FORENSIC ACCOUNTING WITH SPECIAL EMPHASIS ON FRAUD DETECTION

ABSTRACT

The study examined the use of artificial intelligence in forensic accounting and its relationship with audit evolution in Nigeria. Three (3) research questions were raised for the study and all were formulated into hypotheses and tested. Consequently, related literature on the conceptual review, theoretical framework and empirical review of artificial intelligence in forensic accounting (using three parameters of fraud detection, financial reporting quality and audit process) and audit evolution were discussed adequately. The survey research design was used for the study. Judgmental non-probability sampling technique was employed to select 120 practicing accountants, university graduates and those with accounting qualifications for the study. The instrument used for the collection of data was a structured online questionnaire. It was validated by the researchers’ supervisor. The data collected for the research questions were analyzed using descriptive statistical tools such as frequency, percentage and mean while the hypotheses were analyzed using Ordinary Least Square Regressions and was tested at 0.05 level of significance. The findings of the study revealed that in Nigerian business environment: there is positive and insignificant impact of the use of artificial intelligence for fraud detection and for changing the process of auditing on audit evolution while there is negative and insignificant impact of the use of artificial intelligence for improving financial reporting quality on audit evolution. It was recommended that the Nigerian government should take steps to carry out periodic awareness program for the adoption of forensic accounting practices in the country. This can be achieved through public campaigns, workshops, and seminars to educate stakeholders about the importance of forensic accounting. Also the Ministry of Economic Planning should develop clear regulatory frameworks and policies for forensic accounting practices by working with relevant stakeholders such as professional bodies and regulatory agencies in Nigeria.