FORENSIC ACCOUNTING AND NIGERIA BUSINESS ENVIRONMENT
- Department: Accounting
- Project ID: ACC0812
- Access Fee: ₦5,000
- Pages: 102 Pages
- Chapters: 5 Chapters
- Methodology: Chi Square
- Reference: YES
- Format: Microsoft Word
- Views: 1,716
Get this Project Materials
FORENSIC ACCOUNTING AND NIGERIA BUSINESS ENVIRONMENT
ABSTRACT
The focal point of this work is on how forensic accounting could aid fraud detection and prevention when incorporated into the mainstream of Nigeria business environment. Review of relevant literature were carried out in order to gain deeper insight and understanding of the subject matter. Questionnaires were administered in order to generate the necessary primary data and were descriptively analyzed. The various hypotheses were tested using chi-square statistical analysis. The result of the hypotheses revealed that corporate fraud reduction is dependent on forensic accounting. It however revealed that forensic accounting cannot promote responsible corporate governance. Based on the findings of this research work, the researcher came to a conclusion that corporate fraud and poor corporate governance cannot be completely eliminated, it can only be reduced to a barest minimum. It is recommended that the study of forensic accounting courses should be introduced into the Nigeria educational curricular. Also, ethics and value system of the country must not be handled with levity and finally an effective legal system should be put in place to ensure speedy dispensation of justice.
TABLE OF CONTENTS
CHAPTER ONE
Background of the Study
Statement of the Problem
Objective of the Study
Scope of the Study
Relevance of the Study
Hypotheses
Methodology
Limitation of the Study
Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
Historical Background of Forensic Accounting
Definitions and Meaning of Forensic Accounting
Definition and Meaning of Fraud
Types of Fraud
Nature and Extent of Financial Crime
Causes of Fraud
Fraud Detection, Prevention and Control
Roles of Forensic Accounting in Litigation Support
Skills and Characteristics of a Forensic Accountant
Development of Forensic Accounting in the
Accounting Profession
Opportunities and Challenges of Providing
Forensic Accounting Services
An Overview of Nigeria Business Environment
Roles and Responsibilities of the Traditional
Auditor or External Auditor
Differences between a Forensic Accounting
and the Traditional Auditing
Importance of Forensic Accounting on the
Nigeria Business Environment
Financial Statement Fraud in Nigeria Business
Environment and its Link with Forensic Accounting
Level of Forensic Accounting in Other Countries
CHAPTER THREE: RESEARCH METHODOLOGY
Introduction
Research Design
Population
Sample and Sampling Technique
Research Instruments
Sources of Data
Data Analysis Method
Research and Validation of Hypothesis
Validation
Problem Identification
CHAPTER FOUR: ANALYSIS AND INTERPRETATION OF DATA
4.0 Introduction
Questionnaire Administration
Data Description and Interpretation
Test of Hypothesis
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
Introduction
Summary of Findings
Conclusion
Recommendations
Bibliography
Appendix
CHAPTER ONE
BACKGROUND OF THE STUDY
The recent multi-billion dollars corporate scandals (Enron, Tyco, World Com, Adelphia and others) have shaken the business world. The public and governmental reaction to these events has been enormous. It has triggered congressional action that resulted in legislation (Sarbanes-Oxley Act, 2002) and auditing standards (Statement of Accounting Standard No. 99) that require companies and their auditors to be more aggressive in detecting and preventing fraud, which in turn, has elevated the importance of the accounting profession in protecting the integrity of the financial system in order to prevent such scandals.
In today’s society, there is widespread growth in white-collar crimes evidenced by both fraudulent financial reporting and misappropriation of assets. Racketeering and terrorist groups often rely on money-laundering schemes to conceal and disguise their activities such as identity theft, present new challenges to accountants.
The impact on the accounting profession has been dramatic. The environment has created many job opportunities in the accounting profession at federal, state and governmental agencies, such as the Securities and Exchange Commission, the revenue service and the office of the inspector general, all have an increased impact on accountants and others with forensic accounting investigation skills.
However, modern organized corporate frauds are sophisticated, and well resourced by manager, entrepreneur and politicians to mention but few. There is the need to respond to this changing criminal threat and the skills of non-traditional investigators like accountant and the legal experts are needed to combat the corporate ill, this has arouse the call for forensic accountant.
Forensic accounting has to do with the use of the use accounting discipline to help determine issues of fact in business litigation.
It involves the application of accounting, business, legal and financial skills in settling commercial or legal disputes (Omoniyi, 2004).
Simply put, forensic accounting is accounting that is suitable for legal review, offering the highest level of assurance, and including the now generally accepted connotation of having been arrived at in scientific fashion, that is forensic accounting is sufficiently, thorough and complete so that an accountant, be deliver in finding as to accounts, inventories, or the presentation thereof that is of such quality that it would be sustainable in some adversarial legal proceeding, or within some judicial or administrative review.
The focal point of this research work is on how forensic accounting could aid fraud detection and prevention when incorporated into the mainstream of Nigeria business environment.
1.2 STATEMENT OF THE PROBLEM
The failure of statutory auditor to prevent and reduce misappropriation of corporate fraud and an increase in corporate crime in Nigeria business environment has put pressure on the professional accountants and legal practitioners to find a better way of exposing crime in the business world.
The specific problem which this research intend to address are as follow:
Can forensic accounting reduce corporate fraud and mismanagement?
Is forensic accounting the same as fraud investigation?
OBJECTIVE OF THE STUDY
The problem of fraud in Nigeria business environment need to be seriously addressed. The objectives of this research work are;
Is to find out if corporate fraud reduction will depend on the forensic accountant
Forensic accounting can promote responsible corporate governance.
SCOPE OF THE STUDY
The purpose of this study we are to concentrate on forensic accounting with special emphasis on corporate fraud reduction and mismanagement in Nigeria business environment. Data will be obtained from various stakeholders in the Nigeria business environment (specifically Edo State).
RELEVANCE OF THE STUDY
When viewed from the perspective of forensic accounting in Nigeria business environment, the significance of this research will be appreciated.
The primary focus of this research is to enlighten non-forensic accountant on how corporate fraud and mismanagement can be tackled.
The research is also aimed at creating understanding of the duties of foreign accountants in litigation support, the potential for forensic accounting services in the Nigeria business environment, special skills and characteristics of forensic accountant.
Future researchers on this field will find this work as a veritable reference point and will create a better insight into the relationship between corporate fraud and forensic accounting.
HYPOTHESES
Hypotheses shall be developed and tested to ensure a more effective and result oriented work. The null hypothesis (Ho) and the alternative hypothesis (H1) will be used for the purpose of this study.
Hypothesis (1)
Ho: Corporate fraud reduction is not dependent on forensic accounting.
H1: Corporate fraud reduction is dependent on forensic accounting.
Hypothesis (2)
Ho: Forensic accounting cannot promote responsible corporate governance.
H1: Forensic accounting can promote responsible corporate governance.
METHODOLOGY
This methodology help us to examine the different method employ in the collection of data and other method of presentation and analysis of such data.
The research design that will be use for the purpose of this study also came under methodology. For the purpose of this work the survey design will be employed.
The population and the research instrument and the method of sourcing data and collection will be analyzed to help business owner and future forensic accountant.
LIMITATION OF THE STUDY
No study is perfect. Although most business researchers strive to employ scientific tools and method. Some of the constraints problem encountered by the researchers in the course of the research are:
Insufficient Research Materials: The researcher encountered some constraints in the collection of information, very limited materials were obtained from the library.
Time Constraint: Limited time available also posed some challenges to the researcher.
Financial constraints: The unavailability of funds was also a barrier to this research work.
DEFINITION OF TERMS
Corporate fraud:=This is deliberate dishonesty to deceive the public, investor or lending companies, usually result in financial gain to the criminal or organization .
Fraud:= Is an abuse of position, or false representation or prejudicing someone’s right for personal gain.
Litigation support:= Is the process of providing consultation and support services to the attorney in regard to current and pending cases.
Forensic Accounting:= Is accounting that is suitable for legal review, offering the highest level of assurance, and connotation of have been arrived at in a scientific fashion.
Racketeering:= Is the operation of an illegal business by a group closely connected to organized crime.
Mismanagement:= This means a careless or inefficient once energies or abilities.
REFERENCES
Agbonifoh,B.A and Yomere, G.O(1999) Research methodology in the Social sciences and Education uniben.
IFAA (2008) International Forensic Accounting Association, http://www.forensicaccountingassociation.com
La Rosa, L. (2009), “An Overview of Fraud and Forensic Accounting”, http://www.lasalle.ed/school.
Omoniyi, S. O. (2004), “The Emergence of Forensic Accounting”, The Nigerian Accountant, April/June, pp. 43 – 46.
Owojori, A. A. and Asaolu, T. O. (2009), “The Role of Forensic Accounting in Solving the Vexed Problem of Corporate World”, European Journal of Scientific Research, ISSN 1450 – 216X, Vol. 29, No. 2, pp. 183 – 187.
Sarbanes-Oxley Act (2002),
Statement of Auditing Standard, No. 99.
- Department: Accounting
- Project ID: ACC0812
- Access Fee: ₦5,000
- Pages: 102 Pages
- Chapters: 5 Chapters
- Methodology: Chi Square
- Reference: YES
- Format: Microsoft Word
- Views: 1,716
Get this Project Materials