Forensic Accounting and Fraud Management in Nigeria

Abstract

The study evaluated forensic accounting techniques on fraud management in the public sector MDAs in Nigeria. Arising from the rise in corruption in Nigeria evidenced in the Transparency International latest corruption perception index of Nigeria and the fact that the public sector constitutes a larger part of the economy in Nigeria, the study was undertaken to ascertain the operation-ability of forensic accounting techniques in public sector accounting departments. The study investigated Data mining, accounting ratios and trend analysis tools to detect or to prevent fraudulent activities in MDAs. Survey research design was adopted for the study. The study applying multiple regression analysis technique (OLS) revealed the adoption of forensic accounting tools (data mining, accounting ratios and trend analysis) will significantly enhance ability to detect and or prevent fraud in MDAs. Also revealed knowledge gap in the application of these preventive control techniques and the usefulness of trend analysis as a technique for detecting fraudulent practices in public service operations. It is thus recommended to develop the human capital of MDAs by making professional qualification and knowledge of information technology mandatory requirements for staff working in the accounts department and robust IT facilities in each MDA.