Forensic Assurance Services and its Effect on Fraud Detection and Prevention in Manufacturing Firms in Nigeria

Abstract

This study examined the effect of forensic assurance services on fraud detection and prevention in manufacturing firms in Nigeria. The study is vital as it portrays the extent to which forensic assurance services ensure fraud detection and prevention in manufacturing firms in Nigeria. Two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using Friedman’s ANOVA. The study anchored on the White Collar Crime Theory and Stakeholders Theory adopted a Survey Design Approach. Hence, data were collected using questionnaire survey. The empirical analysis of the study indicates that there is a significant and positive relationship between forensic assurance services and fraud detection and prevention at 1% significant level. Thus, the study concludes that forensic assurance services ensure fraud detection and prevention in manufacturing firms in Nigeria. In lieu of this, the study recommended that the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN) should promote forensic accounting formalization and specialization in their curricula, and academia should emphasize forensic accounting skills development through learning in higher educational institution.