Forensic Accounting and Fraud Detection in Nigerian Public Sector: A Case Study of Rivers State
Ladi-Awofeso Eyibrayila Franca *
University of Port Harcourt, Rivers State, Nigeria.
Clifford Ofurum
University of Port Harcourt, Rivers State, Nigeria.
Egbe Solomon
University of Port Harcourt, Rivers State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The study which examined the effect of forensic accounting and fraud detection in Nigerian public sector was fueled by rising incidence of fraud now common in the public sector. The study tried to probe if by adopting forensic accounting fraud can be detected. 357 accountants, directors and senior staff of various Ministries, Departments and Agencies (MDAs) participated in this survey and were selected using stratified random sampling method. Data were gotten from the 357 respondents using structured questionnaire and analysed using Spearman rank correlation method. Forensic accounting was studied using forensic accounting competency, forensic accounting techniques and proactive fraud audit, as the two fraud dimensions addressed were payroll and procurement fraud. With the response analysed, it was discovered that all three indicators of forensic accounting are negatively and significantly correlated with payroll and procurement fraud. The take home is fraud can be detected through forensic accounting. This study advises embracing the latest technology-inspired forensic accounting practices and organizing workshops and training for staff to build their competence level.
Keywords: Forensic accounting, fraud detection, public sector, payroll fraud, procurement fraud