Impact An Exploration of Forensic Accounting Practice for Fraud Prevention and Detection in Nigeria Local Governments: Evidence from Southwest
Keywords:
Internal control, Local government, Fraud Detection, Fraud Prevention, Forensic AccountingAbstract
This study examines the impact of forensic accounting on fraud prevention and detection in local governments in Southwest Nigeria. Specifically, it assesses the level of awareness of forensic accounting among local government staff, identifies the factors perceived to hinder the adoption and implementation of forensic accounting in Nigerian local governments, and evaluates the influence of forensic accounting on fraud prevention and detection. A purposive sampling technique was employed to gather data from 414 respondents across 138 local governments in Southwest Nigeria, using a structured questionnaire. Data analysis involved the use of simple percentages, frequencies, means, and ordinary least squares. The results indicate that while the awareness of forensic accounting techniques among local government staff is generally moderate to high, a significant portion of the staff remains inadequately informed. The study identifies several key barriers to the effective implementation of forensic accounting, including inadequate understanding, poor governance structures, and a shortage of qualified professionals. These challenges, compounded by insufficient enforcement of relevant laws and policies, must be addressed to create an enabling environment for the successful application of forensic accounting. Statistical analysis confirms the significant positive impact of forensic accounting on organizational outcomes. Therefore, it is recommended that local governments implement targeted awareness campaigns and regular training programs to equip staff with the knowledge and skills necessary for effective forensic accounting practices. Additionally, efforts should be made to address barriers such as inadequate understanding, poor governance, and the lack of qualified professionals, while strengthening internal controls and accountability measures.
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