The Project File Details
The focal point of this work is on how forensic accounting could aid fraud detection and prevention when incorporated into the mainstream of Nigeria business environment.
Review of relevant literature were carried out in order to gain deeper insight and understanding of the subject matter. Questionnaires were administered in order to generate the necessary primary data and were descriptively analyzed. The various hypotheses were tested using chi-square statistical analysis. The result of the hypotheses revealed that corporate fraud reduction is dependent on forensic accounting. It however revealed that forensic accounting cannot promote responsible corporate governance. Based on the findings of this research work, the researcher came to a conclusion that corporate fraud and poor corporate governance cannot be completely eliminated, it can only be reduced to a barest minimum. It is recommended that the study of forensic accounting courses should be introduced into the Nigeria educational curricular. Also, ethics and value system of the country must not be handled with levity and finally an effective legal system should be put in place to ensure speedy dispensation of justice.
Table of Contents
CHAPTER TWO: LITERATURE REVIEW
Forensic Accounting Services
Auditor or External Auditor
and the Traditional Auditing
Nigeria Business Environment
Environment and its Link with Forensic Accounting
CHAPTER THREE: RESEARCH METHODOLOGY
CHAPTER FOUR: ANALYSIS AND INTERPRETATION OF DATA
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
The recent multi-billion dollars corporate scandals (Enron, Tyco, World Com, Adelphia and others) have shaken the business world. The public and governmental reactions to these events has been enormous. It has triggered congressional action that resulted in legislation (Sarbanes-Oxley Act, 2002) and auditing standards (Statement of Accounting Standard No. 99) that require companies and their auditors to be more aggressive in detecting and preventing fraud, which in turn, has elevated the importance of the accounting profession in protecting the integrity of the financial system in order to prevent such scandals.
Additionally, in today’s society, there is widespread growth in white-collar crimes evidenced by both fraudulent financial reporting and misappropriation of assets. Racketeering and terrorist groups often rely on money-laundering schemes to conceal and disguise their activities such as identity theft, present new challenges to accountants. The impact on the accounting profession has been dramatic. The environment has created many job opportunities in the accounting profession at federal, state and governmental agencies, such as the Securities and Exchange Commission, the revenue service and the office of the inspector general, all have an increased impact on accountants and others with forensic accounting investigation skills.
However, modern organized corporate frauds are sophisticated, and well resourced by manager, entrepreneur and politicians to mention but few. There is the need to respond to this changing criminal threat and the skills of non-traditional investigators like accountant and the legal experts are needed to combat the corporate ill, this has arouse the call for forensic accountant.
In the light of the foregoing discussion, forensic accounting has to do with the use of the use accounting discipline to help determine issues of fact in business litigation. It involves the application of accounting, business, legal and financial skills in settling commercial or legal disputes (Omoniyi, 2004).
The focal point of this research work is on how forensic accounting could aid fraud detection and prevention when incorporated into the mainstream of Nigeria business environment.
The failure of statutory audit to prevent and reduce misappropriation of corporate fraud and an increase in corporate crime in Nigeria business environment has put pressure on the professional accountant and legal practitioner to find a better way of exposing crime in the business world. The specific problems which this research intend to address are as follows:
The problem of fraud in Nigeria business environment need to be seriously addressed. The objectives of this research work are;
The focus of this study is on forensic accounting with special emphasis on corporate fraud reduction and mismanagement in Nigeria business environment. Data will be obtained from various stakeholders in the Nigeria business environment.
When viewed from the perspective of forensic accounting in Nigeria business environment, the significance of this research will be appreciated.
The primary focus of this research is to enlighten non-forensic accountant on how corporate fraud and mismanagement can be tackled.
The research is also aimed at creating understanding of the duties of foreign accountants in litigation support, the potential for forensic accounting services in the Nigeria business environment, special skills and characteristics of forensic accountant.
Future researchers on this field will find this work as a veritable reference point and will create a better insight into the relationship between forensic accounting and corporate fraud.
Hypotheses shall be developed and tested to ensure a more effective and result oriented work. The null hypothesis (Ho) and the alternative hypothesis (H1) will be used for the purpose of this study.
Ho: Corporate fraud reduction is not dependent on forensic accounting.
H1: Corporate fraud reduction is dependent on forensic accounting.
Ho: Forensic accounting cannot promote responsible corporate governance.
H1: Forensic accounting can promote responsible corporate governance.
Some of the constraints encountered by the researchers in the course of the research are: