Role of Forensic Accounting in Uncovering Accounting Fraud

Abstract

This study concentrated on the Role of Forensic Accounting in Uncovering Accounting Fraud with reference to Guaranty Trust Bank Enugu Metropolis. The study amongst others examines the role, scope and tools of forensic accounting in detecting accounting fraud. For the objective to be achieved, questionnaire was used as a major source of data. 81 respondents were used as total population while 67 was used as the sample size of the study. Taro-Yamane statistical tool was applied as a method for sample size determination. Table and five point likert style was used for presentation and analysis of data. chi-square was used for test of hypothesis. The findings indicates that the roles of Forensic accounting in detecting accounting fraud is identification of fraud such as fake teller valuations, suspicious bankruptcy valuations, and analysis of financial documents in fraud schemes, the scope of forensic accounting in detecting accounting fraud are litigation support and investigative accounting services and the forensic accounting tools in detecting accounting fraud are training, mindset, risk assessment, systems analysis, mathematical modeling and exception reporting. The study therefore recommended that different organizations should always advocate forensic accounting as a means of uncovering accounting fraud because it will always help for quick identification of fake teller/receipt, suspicious bankruptcy and analysis of financial documents through valuation method, management of business entities both private and public should try all possible means in focusing on the main scope of forensic accounting such as litigation and investigation services for it help for proper detection of accounting fraud at the right time in a way it will not affect the profitability of business and training, mindset mathematical modeling and others as tools of forensic accounting should be employ by organizations an