IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 6 2024
DOI: 10.56201/jafm.v10.no6.2024.pg11.31

---

Effect of Fraud Analytic and Financial Forensics on Fraud Management in Federal Government Ministries in Nigeria

OJELABI, Sunday Adeyemi

---

Abstract

Nigeria, with its complex administrative structure and vast public expenditure, has encountered a multitude of fraudulent activities within its federal ministries. Fraudulent schemes range from bribery and corruption to procurement fraud, payroll fraud, and asset misappropriation. This study examined the effect of fraud analytic and financial forensic on fraud management in federal government ministries in Nigeria. The Population for this study consisted of all the 1550 staff of the Office of the Auditor General of the Federation. However, respondents for this study is Five Hundred and Twenty (520) of them are assigned forensic duties. Primary data was collected using 5-point Likert scale structured questionnaire for the study, the study employed the Partial Least Square Structural Equation Modeling (PLS-SEM) to model the regression analysis. The study found that fraud analytic has positive and significant effect on fraud management. Also, it was found that financial forensic has positive and significant effect on fraud management. It is concluded that fraud analytic and financial forensic has positive and significant effect on fraud management in the under study federal government ministries in Nigeria. Based on the study's findings, it is recommended that Federal government ministries in Nigeria should invest in building and enhancing their financial forensic capabilities. It is recommended that the government through the Office of the Auditor for the Federation should invest in advanced fraud analytics tools and technology to enhance fraud management capabilities within federal government ministries and agency.

keywords:

Fraud Analytic, Financial Forensic, Fraud Management

---

References:

Adebisi, J.F, & Gbegi, D. (2015). Fraud analytic and the Nigerian public sector performance. The
need for forensic accounting. Internal Journal of Business, Humanities and Technology,
5(5), 67- 78.
Anichebe, M.A & Juliana, J. (2020). The adoption of fraud analytic in combating financial crimes
in Nigeria’s public sector. Journal of Financial Regulation and Compliance, 25(1), 73-85
Apostolou, N.G, Crumbley, L. (2005). The Expanding Role of the Forensic Accountant. Forensic
Examiner 14 (3).
Crain, M.A, Hopwood, W.S, Gendler, R.S, Young, G.R, Pacini, C. (2019). Essentials of Forensic
Accounting. Hoboken, USA: John Wiley and Sons.
Baesens B, Vlasselaer V Van & Verbeke W (2015). Fraud Analytics Using Descriptive, Predictive,
and Social Network Techniques. DOI: 10.1002/9781119146841.
Dada, S.O. & Audu, M.A. (2021). Relevance of forensic accounting in the prevention and detection
of tax frauds in federally collected taxes in Nigeria. Journal of Accounting Auditing,
3(9)199-225.
Dada, S.O & Fatai, B.J. (2020). Forensic Accounting and Financial Crimes in Nigerian Public
Sector. Journal of Accounting and Taxation, 12(4),118-125.
Davis, C, Farrell, R., & Ogilby, S, (2010).Characteristics and Skills of the Forensic accountant.
American Institute of Certified Public Accountants 11-26.
De Roux D, Pérez B, Moreno A, Del Pilar Villamil M & Figueroa C (2018). Tax fraud detection for
under-reporting declarations using an unsupervised machine learning approach. In
Proceedings of the ACM SIGKDD International Conference on Knowledge Discovery and
Data Mining. New York, USA: Association for Computing Machinery.
http://doi.org/10.1145/3219819.3219878.
Degboro, D. & Olofinsola, J. (2007). Forensic accountants and the litigation support engagement.
Niger. Account., 40 (2), 49-52.
DiGabriele, J. A (2008). An Empirical Investigation of the Relevant Skills of Forensic Accountants.
Journal of Education for BUsiness 83 (6), 331-338.
DiGabriele, J. A. (2009). Forensic Accountant: A Closer Look at the Skills Forensic Accounting
Education Should Emphasize. The Forensic Examiner, Summer, 77-79.
http://dx.doi.org/10.1108/09675420910984673
DiGabriele, J. A. (2009). Implications of Regulatory Prescriptions and Audit Standards on the
Evolution of Forensic Accounting in the Audit Process. Journal of Applied Accounting
Research, 10 (2), 109- 121.
DiGabriele, J. A. (2011). Revisiting the Integration of Forensic Accounting and the Auditing
Paradigm. Forensic Examiner, Summer, 70-73
Efosa, E. E., and Kingsley, A. O. O. (2016). Forensic accounting and fraud management: Evidence
from Nigeria. Igbinedion University Journal of Accounting, 2(8), 245-308
Eiya, O, & Otalor, J.I. (2013). Forensic Accounting as a Tool for Fighting Financial Crime in
NIgeria. Research Journal of Finance and Accounting, Vol.4, No.6.
Ehioghiren, E. E. & Atu, O. O. K. (2016). Forensic accounting and fraud management: Evidence
from Nigeria. Igbinedion University Journal of Accounting, 2, 245-307.
Enofe, A.O., Olorunnuho, M.S. & Okporua, A.D. (2016). Forensic accounting and fraudulent
financial reporting in Nigeria. Journal of Accounting and Financial Management, 2 (1), 2-
7.
Eyisi A.S & Agbaeze E.K (2014) The Impact of Forensic Auditors in Corporate Governance,
International Journal of Development and Sustainability 3 (2) 404-417.
Eze, E.I. (2019). Effects of forensic accounting, Financial forensic and fraud prevention in the
Nigerian public sector with Imo state as a case study. Accounting and Taxation Review,
3(3), 121- 139.
Gbegi, D.O. & Adebisi, J. F. (2014). Forensic Accounting Skills and Fraud Investigation in the
Nigerian Public Sector E-ISSN 2039-2117 Mediterranean Journal of Social Sciences
MCSER Publishing, Rome-Italy Vol 5 No 3 Doi:10.5901/mjss.2014.v5n3p243 Retrieved
23/2/2015.
Gottschalk, P. (2010). Prevention of white collar crime: The role of accounting. Journal of Forensic
and Investigative Accounting, 3 (1), 23-48.
Herbert, W.H, Onyilo, F, Ene, E.E, Tsegba, L.N. (2017). Fraud and Forensic Accounting Education:
Prospects and Challenges in Nigeria. International Journal of Business and Management
12(7), 146-161.
Hildebrandt, M. (2019) Privacy as protection of the incomputable self: From agnostic to agonistic
machine learning. Theoretical Inquiries in Law 20(1): 83–121. DOI: 10.1515/til-2019-
0004.
Ile, C.M, Odimmega, C.G. (2018). Use of Forensic Accounting Techniques in the Detection of Fraud
in Tertiary Institutions in Anambra State, Nigeria. African Research Review 12 (1), 66-76.
Jain, A.K. (2010). CESifo DICE Report 2/2011, www.cesifogroup.de/DocDL/dicereport211-
forum1.
Karklins, R. (2005). The system made me do it: corruption in post-communist societies. Armonk,
N.Y.: M.E. Sharpe.
Kasum, A.S (2019) The Relevance of Forensic Accounting to Financial Crimes in Private and
Public Sectors of Third World Economies: A Study from Nigeria. Proceedings of the 1st
International Conference on Governance Fraud Ethics and Social Responsibility.
Kemp. R. (2014). Legal aspects of managing big data. Journal of Computer Law and Security
Review 3(2) 482–491. http://doi.org/10.1016/ j.clsr.2014.07.006.
Khersiat, A.M. (2018). Impact of financial forensic in detecting the manipulation of financial
statements and combating tax fraud in Jordan. Internal Journal of Business, Humanities
and Technology, 5(5), 67- 78.
Klievink B, Romijn BJ, Cunningham S & de Bruijn H (2017). Big data in the public sector:
Uncertainties and readiness. Journal of Information Systems Frontiers 19(2), 267–283..
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.
Nigrini M,J. (2020). Forensic Analytics: Methods and Techniques for Forensic Accounting
Investigations. Hoboken, USA: John Wiley and Sons.
Nnamdi, E. (2018). The effect of financial forensic on the management of Bank fraud in Nigeria.
Accounting Research Journal, 28(1), 98 – 114.
Nunn, L, McGuire, B.L, Whitecomb, C, Jost, Eric. (2006). Forensic Accountants: Financial
Investigators. Journal of Business & Economics Research (JBER) 4 (2).
Ojo, M. (2012) Forensic Accounting and the Law: The Forensic Accountant in the Capacity of an
Expert Witness. Retrieved from http://ssm:com/abstract=2026071
Okoye, E & Ndah, E.N. (2019). Forensic Accounting and Fraud Prevention in Manufacturing
Companies. International Journal of Innovative Finance and Economics Research. 7 (1):
107-116.
Okoye E. I.,(2019). Forensic accountant expert testimony and objectivity of forensic investigation
in deposit money banks in Nigeria. Journal of Nigerian Academic Forum, 17 (1), 2-9.
Okoye, E., Adeniyi, S., & Nwankwo, K. (2015). Effect of forensic auditing on financial performance
of quoted food and beverage firms in Nigeria. International Journal of Innovative Finance
and Economics Research, 7(4), 121-135.
Onyali, K.J. & Ochanya, J.E (2017). Effect of forensic accounting and financial forensic methods
in corporate fraud deterrence in Nigerian Banks. Managerial Auditing Journal, 4(3):2-19
Popoola, O., Che-Ahmad, A., Samsudin, R., Salleh, K., &and Babatunde, A. (2016). Accountants’
capability requirements for fraud prevention and detection in Nigeria. International
Journal of Economics and Financial Issues, 6(4), 1-10.
Ramaswamy, V. 2005. (2005). Comorate Governance and the Forensic Accountant. The CPA
Journal 6870.
Rezaee Z, Daniel L, Michael H & Alexis S (2016). Forensic Accounting Education and Practice:
Insights from China: Journal of Forensic and Investigation Accounting, 8 (1) 106-119.
Rezaee, Z, Crumbley, D.L, Elmore, R.C. (2004). Forensic Accounting Education: A Survey of
Academicians and Practitioners. Advances in Accounting Education, Forthcorming.
Rezaee, Z, Lander, G. H, Gavin, T.A. (1992). Forensic Accounting in the Curriculum. Managerial
Auditing Journal 7 (3).
Rosen, L.S. (2006).

DOWNLOAD PDF

---

Back