The need for forensic accounting service has been widely recognized in most developed countries. However, in developing countries, forensic accounting service is still receiving the attention of regulators and professional accounting bodies. This paper discusses whether the use and application of forensic accounting investigation have an effect in detecting financial fraud in Nigeria. The study relied on previous literature on forensic accounting and its application techniques. The review of this paper shows that forensic accounting service has a significant effect in detecting financial fraud. The review also indicated that forensic accounting investigation is a step forward on the discovery of financial fraud and other fraudulent exercises in Nigeria. In view of this, the paper suggests that the professional accounting bodies such as the Institutes of Chartered Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria (ANAN) should encourage specialization on forensic accounting service among the professional accountants in practice. This could possibly help to reduce financial fraud and related fraudulent activities in both public and private organizations in Nigeria.
AICPA (2014). Forensic accounting-fraud investigation. Retrieved from https://www.aicpa.org/membership/downloadabledocuments/forensic-accounting-fraud-investigations-chapter1.pdf
Akhidime, A. E. (2018). Bridging audit expectation gap with the integration of forensic accounting: A review. Aefunai Journal of Accounting, Business, and Finance, 72-82.
Alabdullah, T. T. Y., Alfadhl, M. M. A., Yahya, S., & Rabi, A. M. A. (2013). The role of forensic accounting in reducing financial corruption: A study in Iraq. International Journal of Business and Management, 9(1), 26.
Bakre, O. M. (2007). The unethical practices of accountants and auditors and the compromising stance of professional bodies in the corporate world: Evidence from corporate Nigeria. Accounting Forum, 31(3), 277-303.
BBC News. (13 January, 2004). Britain’s biggest banking scandals. Retrieved from http://news.bbc.co.uk/2/hi/business/3391379.stm
CBN (2017). Exchange Rate –US Dollar Retrieved January 3, 2017 from www.cbn.gov.ng/rates/ExchRateByCurrency.asp?beginrec=4701&endrec=4800&currecytype=$USD
CIMA (2009). Corporate Fraud. Gateway Series, 1-17. Retrieved May 20, 2017 from http://www.cimaglobal.com/documents/importeddocuments/cid_tg_corporate_fraud_may09.pdf.pdf
Crumbley, D. L. (2009). So what is forensic accounting? The ABO Reporter, 9. Retrieved from http://abfa.us/wp-content/uploads/2018/03/So-What-is-Forensic-Accounting-SITE.pdf
Efosa, E. E., & Kingsley, A. O. O. (2016). Forensic accounting and fraud management: Evidence from Nigeria. Igbinedion University Journal of Accounting, 2(8), 245-308.
Eliezer, O., & Emmanuel, B. (2015). The relevance of forensic accounting in the detection and prevention of fraud in Nigeria. Historical Research Letter, 23, 17-20.
Enofe, A. O., Okpako, P. O., & Atube, E. N. (2013). The impact of forensic accounting on fraud detection. European Journal of Business and management, 5(26), 61-72.
EY (2016). Corporate misconduct- individual consequences. 14th Global Fraud Survey. Retrieved July 16, 2016 from http://www.ey.com/publication/vwLUAssets/EY-corporate-misconduct-individual-consequences/$FILE/EY-corporate-misconduct-individual-consequences.pdf
ISA 240 (2009). The auditor responsibilities relating to fraud in an audit of financial statements. Retrieved August 20, 2016 from http://www.ifac.org/system/files/downloads/a012-2010-iaasb-handbook-isa-240.pdf
Jones, M. J. (2011). Creative accounting, fraud and international accounting scandals. John Wiley & Sons, Ltd., England
Kennedy, K. A. (2012). An analysis of fraud: Causes, prevention, and notable cases. Honors Thesis Paper. Retrieved from http://scholars.unh.edu/cgi/viewcontent.cgi?article=1099&context=honors
Modugu, K. P., & Anyaduba, J. O. (2013). Forensic accounting and financial fraud in Nigeria: An empirical approach. International Journal of Business and Social Science, 4(7), 281-289.
NDIC (2012). Annual Report. Retrieved March 21, 2017 from http://www.ndic.gov.ng/files/Links/NDIC%20Report%202012.pdf
NDIC (2014). Annual Report. Retrieved March 21, 2017 from http://ndic.gov.ng/wp-content/uploads/2015/07/Links/NDIC%202014%20Combined.pdf
NSA (2013). Retrieved June 11, 2017 from http://icanig.org/ican/documents/NSAs.pdf
Nwaiwu, J. N., & Aaron, F. C. (2018). Forensic accounting relevance and fraud detection process and financial performance in Nigeria. International Journal of Advanced Academic Research/Accounting and Economic Development, 4(2), 16-35.
Okaro, S. C., & Okafor, G. O. (2013). Drivers of audit failure in Nigeria-evidence from Cadbury (Nigeria) PLC. Research Journal of Finance and Accounting, 4(6), 14-17.
Okike, E. (2004). Management of crisis: The response of the auditing profession in Nigeria to the challenge to its legitimacy. Accounting, Auditing & Accountability Journal, 17(5), 705-730.
Pedneault, S., Silverstone, H., Rudewicz, F., & Sheetz, M. (2012). Forensic accounting and fraud investigation for non-experts. John Wiley & Sons.
Popoola, O., Che
In-Text Citation: (Sule, Ibrahim, & Sani, 2019)
To Cite this Article: Sule, S., Ibrahim, S. S., & Sani, A. A. (2019). The Effect of Forensic Accounting Investigation in Detecting Financial Fraud: A Study in Nigeria. International Journal of Academic Research in Business and Social Sciences, 9(2), 545–553.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
