FORENSIC ACCOUNTING AND AUDIT AS A
ABSTRACT
This research work concentrated on forensic accounting and audit as a panacea for mitigating / preventing corporate fraud in Nigeria. The purpose of this research work, is to fight / curb the increasing rate of fraud in the Nigerian Banks. The significance of this study is to determine the root causes of fraud and misappropriation in banks and recommend ways to curb or country these corrupt practices. Research questions and two hypothesis were employed. Simple percentage was used to analyse the research questions while chi-square was used to test the hypothesis. Based on the analysis of the research questionnaires, and the test of hypothesis, the following findings were made. Carelessness of accounting records my accountant causes fraud in the bank and other business organizations, employment of unqualified staff courses fraud in the banks, employment of forensic accountants helps in discouraging found in banks. Diversified accounting and auditing experience controls found in banks, audit of the financial statement of banks discourages corporate fraud in banks. Finally, it was therefore recommended that management should be mindful / careful of the kind of staff they employ / recruit in banks, a sound and good internal control system should be employed and strictly adhered to, management should set the tone at the top by creating healthy friendly organizational climate so as to aid the organization their objectives, proper authorization limit and control of transaction is necessary so as to help stamp out frauds in banks.
TABLE OF CONTENTS
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents
CHAPTER ONE:
1.0 Key words / introduction
1.1 Background of the study
1.2 Statement of problem
1.3 Purpose of the study
1.4 Significance of the study
1.5 Research Question
1.6 Hypothesis one and two
1.7 Scope of the study
1.8 Definition of terms
CHAPTER TWO:
Review of Related Literature
2.1 Theoretical framework of the study
2.2 Redflags and nature of co-operative fraud
2.3 Sources and causes of co-operative fraud
2.4 The role of forensic accounting in co-operate environment
2.5 The Techniques in forensic accounting
2.6 Need of forensic Accounting
2.7 The role of Auditors in co-operate environment
CHAPTER THREE:
Research Methodology
3.0 Introductions
3.1 Design of the study
3.2 Area of the study
3.3 Population of the study
3.4 Sample of the study
3.5 Instrument for data collection
3.6 Validity of the instruments
3.7 Distribution and Retrieval of the instrument
3.8 Method of data Analysis
CHAPTER FOUR:
Presentation and Analysis of Data
4.1 Presentation, Analysis and interpretation of data
4.2 Findings
CHAPTER FIVE:
SUMMARY OF FINDINGS / CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendation
5.4 Limitation of the study
References
Appendix 1
Appendix II
Questionnaires
CHAPTER ONE
1.0 KEY / INTRODUCTION
i Forensic
ii Accounting
iii Audit
iv Panacea
v Preventing
vi Corporate
vii Fraud
1.1 BACKGROUND OF THE STUDY:
Forensic accounting integrate accounting, auditing and investigating skills. It is a specially practice area of accounting that describes engagement that result from actual or anticipated disputes or litigation. Forensic according to the Webster’s dictionary means, belonging to, used in, or suitable court of judicature or to public discussion or deliberate, it therefore means the forensic accountprovides accounting analysis that is suitable to court of judicature or to public discussion or debate which will form the basis for dissension, debate and ultimately dispute resolution.
In the words of filmer (2003) forensic accounting is seen as a method of investigating financial transaction and business situations in order to obtain the truth of and develop an export opinion regarding certain fraudulent activities.
Two areas of expertise make up the field of forensic accounting; litigation support includes business valuation revenue analysis, expert witness testimony and failure earning valuation while instigative accounting is the process of gathering evidence of criminal conduct and sustaining the content of damages.
Forensic accounting is hardly a new field, but in recent years, banks, insurance companies and even law enforcement agencies, the federal Bureau of investigation (FBI) nad Internal REvenue Services (IRS) have increase the use of these experts. A study conducted by Kessler international (a forensic
Accounting and investigation) showed that there is a growing need for experience forensic
Accountants. ABC now.com reports that industry insiders expect more companies to use forensic
Accountants as preventive measures as the demand for trustworthy financial statements increase in the wake of the recent accounting scandals. Todd avery, president of the risk consulting consulting firm and worldwide says, that may executives are paying greater attention to controls and fraud. Prevention today, then they were given a few years ago.
Historically, forensic accountants who work inpublic practices were given often, called, after owners suspected that fraud has been committed. Now recent major corporate scandal have prompted business owners to turn forensic accountant to proactive. Fraud checkups. The frauds these specialists ae looking for are usually two general types namely: financial statement fraud and theft of assets (these two can co-exist in the situation in which management has taken assets and misstated financial statement to cover-up falsification). To uncover financial statement fraud, the forensic
Accounting often analyses the financial statement by using ratio analysis and certain data-mining techniques such as Bedford’s a procedure used to determine the likelihood that data have been altered. Other procedures used include inspection of documents, conduct of interviews with persons who would have knowledge about any fraud that has occurred.
The occupational or corporate fraud committed by employees usually involve, theft of assets. Embezzlement has been the most committed fraud for the last three (3) years. Employees may be involved in kick backs schemes, identify theft or conversion of corporate assets for personal use. The forensic accountants coupled the observation of the suspected employee with physical examination of assets, investigation and inspection of documents and interviews of those involved.
Ekechi (1990) was of the opinion that in order to attain the objective of fraud management, there is need for compliance with established policies, rules and procedures. Also rules that employees should be made about of the risk of attempting to defraud and action expected if caught.
Finally for forensic accounting and audit to serve as technique or panacea for preventing corporate fraud in Nigeria banks, the forensic accountants must possess the required knowledge and skill in advanced and continued education in appropriate discipline, diversified accounting and audit experience, communication skills (oral and written) practical business experience, ability to work in a team environment and people skills and flexibility (Grippo, 2003) in view of this, this study was narrowed down to first bank Nigeria Plc. The bank began operation in 1894. it operates as a universal bank providing wholesales, retail co-operation, investment and transaction banking services to its customers in the Nigerian market. The bank divided its operation into three major divisions:
a) Retail banking
b) Wholesale banking
c) Treasury and capital market and investment banking services.
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