THE ROLE OF THE FORENSIC ACCOUNTANT IN FRAUD DETECTION IN NIGERIA

Abstract

This research work examines the role of the forensic accountant in fraud detection in Nigeria with comparative analysis of public and private sectors. Forensic accountant plays a significant role in the Nigeria organizations whereby he investigates with the use of technological equipment in its assignment. The researcher employs primary data (questionnaire and personal interview) in its data collection. Hypotheses was analyzed with the use of z- test at 5% level of significance and the result reveal that a good forensic accountant will assist in the growth and development of any organization in which he carried out his assignment. This work recommend among others that a high degree of mutual trust, respect and understanding should exist among the lives of the forensic accountant, the public, private sectors and management in order to achieve the organizational objectives.

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

The trend and the volume are increasing on a daily basis and all levels of the society are involved. The rich, the poor, the young and the elderly, the male and female all are neck deep in fraud and fraud related activities that say a lot about our moral and family situations. From the politicians to the bank directors/executives, from the legal officers to the law enforcement personnel, from the civil servants to the school teacher, from the trader in the market to the hawkers on the street, the tendency for fraud and fraud related crimes is endless.

The first and most sophisticated way of carrying out the fraudulent activities in many organizations is through the accounting and financial records. It is a recognized fact that the management of Enron-the celebrated energy company in USA defrauded by her top management – used creative accounting to make the company look good and powerful on paper than it really was using special purposes subsidiaries that have a single purpose and that did not need to be included in Enron’s balance sheet to hide risky investment activities and financial losses. However, forensic accounting helped subsequently to determine that many of Enron’s recorded assets and profits were inflated, and in some cases, completely fraudulent and nonexistent. Some of the company’s debts and losses were recorded in offshore entities, remaining absent from Enron’s financial statements (Folger, 2011).

1.2   Statement of Problem

The study seeks to address issues of concern to researchers that bothers on fraud and corruption which includes:

The continuous increase in crimes, fraud and embezzlement is not withstanding the presence of law enforcement agencies. The evidence to prove the guilt of criminals and fraudsters are properly led in the court of law. The law enforcement agencies are able to effectively and efficiently prosecute criminals and fraudsters without prejudice.