Forensic Accounting Techniques Research Articles

Forensic Accounting and Investigation: A Means of Curbing Money Laundering Activities in Nigeria

The theme of this summit is “Putting Nigeria on the Pedestal of Sustainable Economic Development: Challenges Strategies and Way Forward”; while my discussion will be on the topic; “Forensic Accounting and Investigation: A means of Curbing Money Laundering activities in Nigeria”.You will all agree with me that to really Put Nigeria on the Pedestal of Sustainable Economic Development, all social, political, and miss-governance vis-a-vis corruption which are seen as the order of the day, and related activities must be checked in order to reduce, and or totally eradicate them. That is when there can be a country of our choice, a country in which our forefather labored and known for.It is a known fact that Money Laundering and its related activities constitutes major problem and impediment to the development of our dear Nation “Nigeria”. This is because, the proceeds of these corrupt practices are constantly being moved out the economic system and later to be re-introduced to the system as though they are “clean monies” from “clean businesses”. Forensic accounting and investigation techniques when properly deployed would help in curbing the menace that is derailing Nigeria’s train from the rail to the Pedestal of Sustainable Economic Development. This my presentation will look critically at the concept of Forensic accounting and Investigation vis-a-vis it’s roles in curbing the activities of corrupts Nigerians who devices Money Laundering as a means of making their illicit monies look clean. A number of available literature were reviewed to arrive at an informed conclusion and recommendation.

Forensic Accounting and Audit Expectation Gap - The Perception of Accounting Academics

This research is about the perception of Accounting Academics on the vexed issue of whether the injection of Forensic Accounting techniques, on a cost/benefit basis, in an audit is capable of increasing the ability of the auditor to discover fraud and thus help in bridging the audit expectation gap in Nigeria. A survey research design approach was adopted for this study. Questionnaire was administered on Accounting Academics of 8 tertiary institutions in the Eastern part of Nigeria. The study revealed, from the perception of Accounting Academics, that Forensic Accounting techniques injected in an audit and given cost/benefit considerations is capable of increasing the ability of the Auditor to detect fraud and thus help bridge the audit expectation gap in Nigeria. This finding has implications for both accounting education and accounting practice.

Accounting Fraud at CIT Computer Leasing Group, Inc.

ABSTRACTThe case chronicles a newly promoted manager's search to uncover an inventory fraud that had been perpetrated by her supervisor at CIT, a publicly held company. During the ensuing investigation, CIT and the Florida Department of Law Enforcement identified 36 different transactions involving the diversion of nearly 2,500 computers, with a conservative estimated total loss to the company of $637,000. Students are also exposed to the importance of internal controls, red flags, the fraud triangle, and forensic accounting techniques. The case also lets the reader see what occurs when, due to management override of internal control, a subordinate no longer trusts a supervisor's communicated information. This can be used at the undergraduate or graduate level in an Accounting Information Systems, Internal Auditing, or Auditing or Fraud/Forensic Accounting class. The Teaching Notes also have an accompanying video, in which the investigators and prosecutor discuss issues related to the case, including the specifics of the case, whistleblowers, and the fraud triangle, and the roles of law enforcement and the judiciary. Included in the video are interviews with the Florida Department of Law Enforcement investigators and the prosecuting attorney that were involved in the CIT case.

The Application of Benford's Law in Forensic Accounting: An Analysis of Credit Bureau Data

The purpose of this research is to analyze the credit bureau data of a commercial bank to detect any possible data errors, irregularities, or fraud. The field of Forensic Accounting is gaining prominence in today’s complex business world. The use of Forensic accounting techniques, in conjunction with the understanding of various investigative methods, will improve forensic accountants, auditors and investigation officers’ ability to examine and to take legal action against those involved in fraud, embezzlement other corrupt criminal acts. Forensic Accountants, Investigative Accountants and Auditors have applied Benford’s Law as a tool and technique in determining misappropriations and frauds. This research contains a sample of 35,379 records of borrowers with a filtered sample of 10,034 from the credit bureau of a leading commercial bank. First, Second, Third and Fourth digits tests of the Benford’s Law are carried out. Chi square is applied to determine the significance of the model. As chi square statistics is significant for 1st, 3rd and 4th digits of sample, it is concluded that there are some irregularities in the bureau data.

Combining Elements of the Fraud Triangle and Professional Skepticism in the Valuation of Lost Profits

Forensic accountants are frequently engaged to review business interruption or lost profits claims for insurance matters. Theoretically, the objective of business interruption insurance is to return the claimant to the position that they would have otherwise experienced had a loss not occurred. Generally, insurance policies consider the following methodology in order to quantify a loss; an insured is entitled to net income (loss) plus continuing expenses for the length of the loss period. This concept was derived from an older model where lost profits recovery was based on gross earnings less discontinued expenses. Forensic accountants in general use one or more of the following methodologies for calculating business interruption losses; 1) The Before-and-After Method, 2) The Comparable Method (or yardstick method), 3) The But For Method, 4) The Breach of Contract Method. When applying the methodological considerations in the application of forensic accounting techniques such the calculation of lost profits, a concurrent concern is to additionally include other qualitative variables that may be important to avoid misspecification of the value of the loss; elements of the fraud triangle and professional skepticism. Business interruption insurance is intended to restore the claimant, not reward them with excess reimbursement.