THE IMPACT OF FORENSIC ACCOUNTING ON DETECTION AND PREVENTION OF FRAUD ON SELECTED FIRMS IN NIGERIA (A CASE STUDY OF SELECTED COMPANIES IN NIGERIA)

ABSTRACT This study assesses the impact of forensic accounting on detection and prevention of fraud on selected firm. The objectives were to examine the effectiveness of conducting investigation on financial fraud. Survey design was adopted. Questionnaire was used in data collection from accounting staff of 10 selected companies as sample size. The t-test analysis regression analysis was adopted to test the stated hypotheses. Findings revealed that forensic accounting significantly influence fraud detection and prevention. It was also revealed forensic litigation has no significant positive effect on recovery of funds lost to fraud. Based on the above, it is recommended that companies in Nigeria step up their forensic accounting practices in order to deter fraud. The increase in the number of cases of financial fraud due to failure of statutory audit to detect and prevent fraudulent activities has given rise for the services of forensic accountants. This paper highlights how forensic accountants can be employed to resolve this challenge. The study was theoretical research which considered the roles of forensic accountants in combating fraudulent activities, differences between a forensic accountant and traditional accountant, features of a forensic accountant and the impact of forensic accountants to detect and prevent fraud. From the research, it was found out amongst others that their services will assist audit committee members in carrying out their oversight functions by providing them assurance on internal audit report. Some of the recommendations proffered is for government to ameliorate the cost of hiring the services of forensic accountants and to treat culprits equally without any favoritism.