Adoption of Forensic Accounting Practices and ts Influence on Fraud Management in The Nigeria Financial Sector: A Mixed Method Approach
Domaine:
socioeconomicType de record:
paper
Créateur:
Emm
Éditeur:
Hôte:
Purpose-This research contextually focuses on the financial industry in one of Africa's largest economies. Nigerian financial sector needs to evolve with advanced anti-fraud innovations such as forensic accounting/investigation that will place the institutions steps ahead of the criminals. These innovations will positively impact their fraud prevention, detection and mitigations measures and will boost the confidence of the customer in their services. This study aims to investigate the outcomes of adoption of forensic accounting practices among financial institutions in Nigeria by examining the influence of adoption decision on fraud prevention, fraud detection and fraud mitigation.
Design/methodology/approach-The study utilises a mixed method approach (survey questionnaire and interviews). The unit of analysis is at the level of an organisation and purposive sampling is used to collect data from Chief Executive Officers, Directors of Finance, Chief Financial Officers, Chief Compliance Officers, Heads of Fraud Investigation Departments and Internal Auditors in the Nigerian financial industry. While the quantitative data were analysed using the partial least square structural equation modelling (PLS-SEM), the qualitative date were analysed using deductive thematic analysis.
Findings-This study found that the adoption of forensic accounting practices significantly influenced fraud prevention, fraud detection and fraud mitigation in positive directions. Additionally, the study concludes that adoption of forensic accounting has the strongest positive effect on fraud prevention in comparison to its effect on fraud detection and fraud mitigation. The findings significantly differentiated the forensic accounting procedures during fraud prevention, detection and mitigation.
Research limitations/implications-The limitations of this study include inadequacy of sample size and representativeness of the entire Nigerian Financial Industry. This was due to unfriendly attitude of the financial institutions towards research students. It was a herculean task getting the participants to complete the questionnaire because many of them complained that the questionnaire was too voluminous. The findings of this study have implications for those charged with governance in financial institutions, regulatory bodies, professional bodies, government bodies and other relevant institutions in understanding the importance of forensic accounting and its relevance in fraud management.
Originality/value-To the best of this researcher's knowledge, there has been no study conducted to investigate the three likely outcomes of adoption of forensic accounting practices in the context of the Nigerian Financial Sector while utilising a mixed method approach. This study significantly distinguishes among the three key activities and procedures of fraud prevention, fraud detection and fraud mitigation when applying forensic accounting expertise.
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