Combating Financial Crimes Through Forensic Accounting in Nigerian Public Sector

doi:10.7176/rjfa/11-11-05

Abstract

Financial crimes are a global issue which remains unresolved. These crimes have plagued every corner of the world economy. The adverse effect of these crimes is immense in Nigeria. Continuous research confirmed a strong demand for the forensic accounting of preventing, detecting and arresting of financial crimes menace in Nigeria and the rest of the world. However, the studies of combating financial crimes through forensic accounting are very few in literature and not fully explored in Nigerian public sector. This study therefore, sets to examine the impact of forensic accounting techniques for combating financial crimes in Nigerian public sector. This study employs a survey research design and purposive sampling technique to select the sample of eighty six (86) accountants and auditors of the three selected ministries in Osun State, Nigeria. Both primary and secondary data were collected. The primary data was collected through a designed structured questionnaire. The data collected was analyzed using descriptive and inferential statistical tools. It was found that combating of financial crimes in Nigerian public sector through the application of forensic accounting is possible as the. p–value = 0.00 < 0.01. This study therefore concluded that, government of Nigeria should increase the interest in and facilitate the growth of forensic accounting by giving legal backing for proper monitory and investigation of alleged cases of financial crimes . This study recommended that, all government ministries, agencies and parastatals should establish forensic accounting unit to help strengthen internal controls and ensure thorough investigation in order to prevent, deter and detect financial crimes and the University regulatory body as well as the accounting professional bodies should ensure that forensic accounting courses are included in the curricula to ensure the training and increased awareness of forensic accounting in Nigeria. Keywords: Forensic Accounting, Financial Crimes, Nigerian Public Sector. DOI: 10.7176/RJFA/11-11-05 Publication date: June 30th 2020

Highlights

The rise in financial crimes at the beginning of the twenty-first century was associated with increased financial crisis incidence and awareness, thereby questioning the role of forensic accountants on their prevention and detection (Ezejiofor, Nwakobu & Okoye, 2016). Oyeokun (2017) affirms that corruption and other financial and economic crimes are the bane of Nigerian development efforts and harm the economy but the perceived lack of the appropriate litigation support services in the court is a principal cause of misjudgment
This study examined the impact of forensic accounting techniques for curbing financial crimes
Since the research results have revealed that, forensic accountings can play a significant role in combating financial crimes in Nigeria, it flows that the policy makers can rely on this finding and formulate policies relating to the combating of financial crimes

Summary

Introduction

The rise in financial crimes at the beginning of the twenty-first century was associated with increased financial crisis incidence and awareness, thereby questioning the role of forensic accountants on their prevention and detection (Ezejiofor, Nwakobu & Okoye, 2016). Oyeokun (2017) affirms that corruption and other financial and economic crimes are the bane of Nigerian development efforts and harm the economy but the perceived lack of the appropriate litigation support services in the court is a principal cause of misjudgment. Financial crimes (FCs) committed by individuals and organizations include fraud of any kind, money laundering, embezzlement, bribery, extortion, corruptions and tax evasion (Izedonmi & Ibadin, 2012) Most of these financial crimes are difficult to detect, through the statutory audits and most of those detected are not reported for fear of bad publicity (Dada, Enyi & Owolabi, 2013). Litigation support and dispute resolution and the upsurge in financial crimes in countries and the world as a whole accentuated the need for the application of its techniques (Dada, et al 2013) Forensic accounting is gaining dominance in fighting against fraud and other financial crimes (Adeniyi, 2016) Some of these financial crimes are difficult to detect, through the statutory audits and most of those detected are not reported for fear of bad publicity (Dada, Enyi et al, 2013). The use of forensic accounting techniques could better enhance the prosecution of financial crime cases than the statutory auditing (Evans, 2017)

Methods

Findings

Conclusion