FORENSIC ACCOUNTING TECHNIQUES AND FINANCIAL FRAUD DETECTION IN NIGERIA PUBLIC SECTOR

Abstract

This study critically examines forensic accounting techniques and financial fraud detection in the Nigerian public sector. To fulfil the objective of the study, three (3) research questions were raised and three (3) hypotheses tested. The study adopted a research survey design which was also used by some researchers in prior studies. A population of seven (7) ministries were used for the study while a sample size of one hundred and fifty (150) which consist of accountants, auditors, and directors in the public sector were selected. A structured 5- point likert scale questionnaire were administered to the entire respondents out of which a hundred (100) were returned. Mean and standard deviations was used to answer the research questions while t-test was used to test the hypothesis at 0.05 level of significance. The findings revealed that forensic accounting is indeed a veritable tool in detecting financial fraud in the Nigerian public sector. It was recommended that there should be inclusion of data mining, whistle-blowing policy and fraud reporting in the training programme of accountants and auditors on fraud detection and prevention to further bolster the role of forensic accounting. Furthermore, it was also recommended that strategic plans and strategies should be developed by both private organizations and public sector organization, in order to make forensic accounting significant in a digitalized environment taking cognizance of forensic software as an aid to boost the investigation of all forms of financial fraud. The paper fills an important gap in academic literature as it provides an insight on the application of forensic accounting in a computerized environment and the effectiveness of litigation support in financial fraud detection.