E-ISSN 2039-2117 Mediterranean Journal of Social Sciences Vol 5 No 3

ISSN 2039-9340 MCSER Publishing, Rome-Italy March 2014

Forensic Accounting Skills and Techniques in Fraud Investigation in the

Nigerian Public Sector

Gbegi, D. O
Department of Accounting, Kogi State University, Anyigba,Kogi State, Nigeria
[email protected]

Adebisi, J. F. Ph.D
Director General, Nigerian College of Accountancy, Jos, Nigeria
[email protected]

Doi:10.5901/mjss.2014.v5n3p243

Abstract

The research is designed to examine Forensic Accounting Skills and Techniques in fraud investigation in the Nigerian public
sector. The population of this study comprised of 129 senior staff of the three Anti-Corruption Agencies in Nigeria (EFCC,
ICPC, and CCB). The study methodology includes both primary and secondary sources of data collection; questionnaire was
used in collecting primary data while secondary data were obtained from EFCC, ICPC and CCB. The data generated for this
study were used for the testing of hypotheses using Analysis of variance (ANOVA) and time series analysis with the aid of
SPSS version 17.0. Our findings show that, first, forensic accounting skills and techniques have significant effect on
uncovering and reducing fraud in the Nigerian public sector. The research recommends that, first, anti-corruption agencies in
Nigeria should establish forensic units and forensic laboratories to allow room for more effective and efficient investigation of
suspected and confirmed fraud cases. Second, the public sector (government) should develop interest in forensic accounting
by making sure that forensic accounting is institutionalized in all ministries, extra-ministerial departments and parastatals to
build up effective internal control system that will enhance more effective performance in the Nigerian public sector.

Keywords: Forensic Accounting, Skills, Techniques, fraud investigation,public sector.

1. Introduction

Fraud is a severe problem of concern globally. It is a major concern in developing nations. It is so endemic that fraud are
gradually becoming a normal way of life in both public and private sectors, from the presidential cabinets, down to the
political officer, to the ward councilors, from managing directors of companies, through middle management cadre and to
lower managers. Individuals perpetrate fraud according to the capacity of their offices. Although fraud affects the whole
world, the magnitude of fraud in Nigeria and the extent to which the economy is affected is a call for alarm (Abiola, 2009).
Fraud has been associated with human organization from recorded history. The eradication of which has remained
elusive in most parts of human society and civilization. It is an act of deception intended for personal gain or to cause a
loss to another party. Seetharaman, Sentivelmurugan and Periyanagam (2004) observed that an analysis of the
characteristics of perpetrators showed that the fraud influencing factors include age, gender, position education
background and existence of motive for collusion. The growth of digital computer technology procreates fraud and
generates additional risks of swindling and illicit activities.
There has been an increased concern about fraud in Nigeria and beyond. For instance the oil subsidy probes in
Nigeria which reveals that between 2007 and 2009, the Nigerian National Petroleum Corporation (NNPC) over deducted
funds in subsidy claim to the tune of N28.5billion naira calls for concern (Oboh, 2012).
However, the Auditor-General of the Federation admitted some anomalies in the operations of Federal Inland
Revenue Services (FIRS). According to him, the audit examination of the accounting records maintained for the
Federation Account of FIRS revealed that the collecting banks were in the habit of late remittance of actual collection to
the CBN thereby contravening the agreement between FIRS and collecting banks. Also, there was no documentary
evidence to authenticate the payment of the penalties and interests amounted to N172, 655 million to the Federation
account in 2009. The Auditor-General added that some money generated from over recovery was not remitted to the

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Federation (Oboh, 2012).

In the case of Nigeria Custom Services (NCS), the report states “audit examination of the records maintained for
the Federation Account as the NCS revealed discrepancies between the figures of revenue obtained from the customs,
and the figures of revenue remitted to the federation account by NCS” (Orkura, 2009). The discrepancies arose from
figures of nine months, which indicated that NCS remitted less than the revenue collected during the period to the
government. While the figures for the three months March, October and November indicated that NCS remitted more
than the revenues collected during the period to the Federation Account, which gave a total net difference of N11.122
billion, the report stated (Orkura, 2009).
The fraud cases mentioned above and some other corporate financial accounting scandals such as Enron,
WorldCom, Global Crossing, Tyco, Cadbury and financial scams by some Nigerian Government officials as reported by
Economic and Financial Crimes Commission (EFCC) have continued to increased concerns about fraud, wiped out
billions of dollars of shareholders value and led to the erosion of investors’ confidence in financial markets and reduced
public trust in government.
Fraud has had severe negative consequences on Nigeria, ranging from negative economic impact to negative
national image (Ribadu, 2003). Looking at the recent frauds in Nigeria, in each case the perpetrators are the people at
the helm of affairs, for example the aviation scam of N5.6 billion in 2009 was perpetrated by the then Minister of
Aviation(Ojeme, 2010). The N2 billion Bayelsa State frauds in 2010 were perpetrated by the then Bayelsa state
Commissioner of Finance, the state accountant general, the state’s Director of Treasury, and the Director of Finance
(Ojeme, 2010). The Kogi State’s N1.9 billion scam was committed by commissioners for Local Government and
Chieftaincy Matters and Agriculture respectively, and Local Government Chairman (Ojeme, 2010). The capital market
fraud (share cloning) which started in 2002 was perpetrated by the executives of Bankolans investment limited and so on
(Ojeme, 2010).
From 2009-2010, Nigeria lost N13.8 billion to various financial scams (Onyeje, 2009; EFCC media report, 2010
adopted from Oboh, 2012). What all these tend to expose is that there is a management or operational problem in the
Nigeria public sector in the area of financial or accounting control. Thus, one needs not wonder much to see how
devastatingly frauds have compromised the administrative competence, performance capacity and general credibility of
the public sector. Initial estimates of major projects become little fractions of ultimate costs paid; original cash projections
produce less than half of the benefits expected and projects which seemed technically feasible and economically viable,
turned out “while elephant” if not abandoned, with serious implications for growth and development.
Literature reviewed that forensic accounting has helped to uncovered and reduced fraud in countries such as
Britain, Canada, Germany and United State where it is in use but no research has been done in Nigerian public sector. It
has become pertinent that the forensic accounting skills and techniques could help to investigate fraud occurrence since
the external auditors do not or may not have the required training to be able to tackle modern frauds like white collar
crimes such as security fraud, embezzlement, bankruptcy, contract disputes, and possible criminal financial transactions;
including money laundering by organized criminals. It is against this background that this study seeks to examine the
forensic accounting skills and techniques to see whether or not fraud can be uncovered and reduced in the public sector
in Nigeria.

2. Research Questions

i. How do the Forensic Accounting Skills and Techniques help in uncovering fraud in the public sector?
ii. What is the influence of Forensic Accounting Skills and Techniques in reducing fraud in Nigerian public
sector?

3. Objectives of the Study

The general objective of this study is to determine whether or not the forensic accounting skills and techniques can help
in fraud investigation in the Nigerian public sector.
The specific objectives of this study are to:

i. Examine the use of Forensic Accounting Skills and Techniques in uncovering fraud in the Nigerian public
sector
ii. Ascertain the influence of Forensic Accounting Skills and Techniques in reducing fraud in the Nigerian public

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sector.

4. Statement of the Hypotheses

- H01: Forensic Accounting Skills and Techniques have no significant effect on uncovering fraud in the Nigerian
public sector.
- H02: Forensic Accounting Skills and Techniques have no influence on reducing fraud in the Nigerian public
sector.

5. Theoretical Framework

Experts over time have attempted to formulate theories that explain the mind set of fraudsters. Unless Forensic
Accountants understand the way the fraudster thinks, they will not be able to keep one step ahead of the fraudster. The
theory that will guide this study is the Theory of Fraud Diamond by Wolf and Hermanson (2004).

5.1 Theory of the Fraud Diamond

Wolf and Hermanson (2004) proffer the Theory of the Fraud Diamond, in place of the triangle. They argue that the
diamond offers a better view of the factors leading to fraud. They add a fourth variables, capacity, to the three-factor
theory of Cressey. Capabilities mean that, the fraud perpetrator must have the necessary traits, abilities, or positional
authority to pull off his crime.

Figure 1: The Fraud Diamond

Source: Wolf and Hermanson (2004)

Theory of fraud Diamond offers a better view of the factors to fraud. The theory adds fourth variable, capabilities, to the
three factor theory of fraud triangle. Wolf and Hermanson believed many frauds would not have occurred without the right
person with the right capabilities implementing the details of the fraud. They also suggested four observation traits for
committing fraud; First, authoritative position or function within the organization, Second capacity to understand and
exploit accounting systems and internal control weakness, Third, confidence that he/she will not be detected or if caught
he/she will get out of it easily, Fourth, capability to deal with the stress created within and otherwise good person when
he or she commits bad acts.
Reviewing the literature shows that researchers classified the motive side of the fraud diamond differently. Some
researchers classified them as personal, employment or external pressure, while other classified it as financial and non-
financial pressure. However, it can be noticed that both classifications are interrelated. For instance, personal pressure
can come from both financial and non-financial. A person’s financial pressure in this case could be gambling addiction or
a sudden financial need, while a personal non-financial pressure can be lack of personal discipline or greed. By the same
token, employment pressure and external pressure can come from either financial or non-financial pressure. Thus,
Forensic Accountants have to keep in mind that pressure/motive to commit fraud can be either a personal pressure,
employment pressure, or external pressure, and each of these types of pressure can also happen because of financial
and non-financial pressure. Forensic Accountants also need to understand the opportunity for fraud to help them in
identifying which fraud schemes an individual can commit and how fraud virus occurs when there is an ineffective or
missing internal control.
However, it can be criticized that even though the fraud diamond added the fourth variable capability to the fraud
triangle and filled the gap in other theories, the model alone is an inadequate tool for deterring, preventing or detecting
fraud. This is because, the two sides of the fraud diamond (incentive/pressure and rationalization) cannot be observed,

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and some important factors like national value system are ignored.
Our present National Value System is not good, little or no premium is put on things like honesty, integrity and
good character. The society does not question the source of “wealth”. Any person who stumbles into wealth is instantly
recognized and honoured. It is a fact of our time that fraud has its root firmly entrenched in the social setting where
wealth is honoured without questions. Ours is a materialistic society which to a large extent encourages fraud. The desire
to be with the high and mighty caliber of the society extreme want that is often characterized by need, cultural demands
or cultivation of a life too expensive for the legitimate income of the individual. The research believes that, it is important
for Forensic Accountants to consider all the fraud models to better understand why fraud occurs. Therefore all other fraud
models should be regarded as an extension to wolf and Hermanson’s fraud diamond and should be integrated in one
model that include national value system. This should help them in effectively investigating and assessing fraud risk.

6. Conceptual Framework

Joshi (2003) sees forensic accounting as the applications of specialized knowledge and specific skills to stumble up on
the evidence of economic transactions. Zysman (2004) puts forensic accounting as the integration of accounting, auditing
and investigative skills. 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 a scientific fashion
(Crumbley, 2006). Coenen (2005) states that forensic accounting involves the application of accounting concepts and
techniques. It demands reporting, where the accountability or the fraud is established and the report is considered as
evidence in the court of law or in the administrative proceedings (Joshi, 2003). It provides an accounting analysis that is
suitable to the court, which will form the basis of discussion, debate and ultimately dispute resolution (Zysman, 2004).
This means that forensic accounting is a field of specialization that has to do with provision of information that is meant to
be used as evidence especially for legal purposes. The persons practicing in this field (i.e. Forensic accountants)
investigate and document financial fraud and white-collar crimes such as embezzlement and investigate allegations of
fraud, estimates losses damages and assets and analyses complex financial transaction. They provide those services for
corporation, attorneys, criminal investigators and the Government (Coenen, 2005). Their engagements are usually
geared towards finding where money went, how it got there, and who was responsible. They are trained to look beyond
the numbers and deal with the business reality of the situation (Zysman, 2004).
Previous studies indicate that auditors are able to identify Management Fraud Risk factors, but may not be able to
translate this knowledge into an audit plan that effectively takes them into account and enhances chances of detecting
Management Fraud if it exists. Forensic accountants may be able to compensate for such limitations. Academics and
practitioners may be over-estimating what Forensic accountants can contribute to the effectiveness of an audit plan.
They may be able to investigate a known fraud, but may not be able to design audit tests to detect a hypothesized fraud
as well as auditors can.
Oliver (2004) is of the opinion that, because the complexity and scope of commerce has expanded throughout the
world, the need to track money and financial information has grown. There has been a corresponding increase in illegal
financial activity, according to separate surveys by the U.S department of Justice, Price Water House Coopers, and the
Association of Certified Fraud Examiners (ACFE). Ironically, illegal businesses and perpetrators of financial crimes also
need to keep track of their cash flow and manage their operational performance to generate profits, fund activities and
avoid detection and seizure of their assets.
Forensic accounting also called investigative accounting or fraud audit is a merger of forensic science and
accounting. Forensic science according to Crumbley (2003) “may be defined as application of the laws of nature to the
laws of man.” He refers to forensic scientists as examiners and interpreters of evidence and facts in legal cases that also
requires expert opinions regarding their findings in court of law. The science in question here is accounting science,
meaning that the examination and interpretation will be of economic information. Zysman, (2004) the forensic
accountant’s engagements are usually geared towards finding where money went, how it got there, and who was
responsible. They are trained to look beyond the numbers and deal with business reality of the situation.
According to the Black’s law Dictionary, (1979) fraud (sometimes referred to as fraudulent act) includes all the
multifarious means human ingenuity can devise that are resorted to by one individual to get an advantage over another
by false suggestions or suppression of the truth. It includes surprises, tricks, cunning or dissembling and any unfair way
by which another is cheated. Dandago (1997), fraud is an intentional misrepresentation of financial information by one or
more individuals among management, employees or third parties. It involves the use of criminal deception to obtain an
unjust or illegal advantage. It is a deliberate cheating or deception intended to gain an undue advantage. Michael, (2004)

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sees fraud as different from error, which refers to “unintentional misstatements or omissions of amount or disclosures
from an entity’s accounting records or financial statements.”

7. Review of Empirical Studies

7.1 Modeling fraud detection and the relevance of forensic accountants in the audit process

Occupational Fraud has had a big impact on the audit and the destruction of its reputation. Koh and Woo (1998), argue
that there is a widespread belief that a person who has interest in a company (Shareholders, potential investors, take-
over bidders, creditors, etc) should be able to rely on its audited accounts as a guarantee of its solvency, propriety and
business viability, hence, if it transpires, without any warning that the company is in serious financial difficulty, it is widely
felt that somebody should be made accountable for these financial difficulty, it is widely felt that somebody should be
made accountable for these financial disasters, and this somebody is always perceived to be the auditor. Even though
the statements “is always perceived” can be understood as an overstatement, having in mind that fraud detection is
management’s responsibility. Association of Certified Fraud Examiners (ACFE) states in its 2010 report to the nations on
occupation fraud and abuse that medium losses coursed by the occupation fraud was $160.000, which is about a 5%
loss of the typical organization annual; revenue (ACFE, 2010), the public still expected that auditors will be the ones to
detect fraud. Public expectation of the work required to be done by auditors and regulatory requirements for the audit
activity (known as “expectation gap”) have changed over the years.
Fraud detection was considered as the primary role in the audit until approximately 1940 and later on it changed to
be an ordinary examination that was not designed to disclosure defalcations, which increased public dissatisfaction with
the audit activity. To narrow the “expectation gap”, the American Institute of Certified public Accountant (AICPA) issued
series of Statement of Auditing Standard (SAS). Growing concern and expectations from the public culminated in the
advent of the Sarbanes – Oxley of 2002 and the adoption of the SAS No. 99 (as the response to the SAS No. 99 in
2004). International Federation of Accountants (IFAC) revised International Standard on Auditing (ISA) No. 240),
(Singleton et al., 2006). Since those documents were put into force more attentions has been paid to the issue of auditors
detecting fraud, and more technical guidance has been presented to them. Nevertheless, new standards and
requirements have reduced but not eliminated the “expectation gap”. Hence, it is still important to research the possibility
to improve fraud investigation and detection in the audit process through the forensic accounting skills and techniques.

8. Research Design

The research design for this study was based on non-experimental descriptive/survey design of collecting and analyzing
data. Survey design was adopted in the study because it allows data to be collected from a sample with the aim of
discovering the relationship or interactions among variables (Adefila, 2008, Izedonmi, 2005). Both primary and secondary
sources of data were used. The targeted populations of this study were the senior staff of Economic and Financial
Crimes Commission (EFCC), Independence Corrupt Practices and other related offences Commission (ICPC) and Code
of Conduct Bureau (CCB). The elements of the population considered in this research were the staff of Finance and
Accounts units, audit unit, legal and prosecution unit, general investigative unit, financial intelligence unit and forensic
unit. The senior staff of these units constituted the population for the study. The total population of the senior staff for the
three agencies is one hundred and ninety (190). The study considered all the staff that falls within the above categories
in these agencies qualified as members of the population because of their good knowledge and understanding of the
application of forensic services in the agencies.

Table 1: Distribution of the population

S/No Units EFCC ICPC CCB Total
1 Finance and Accounts 15 15 15 45
2 Audit 15 15 11 41
3 Legal and Prosecution 10 10 10 30
4 General Investigation 10 10 07 27
5 Financial Inteligence 10 10 07 27
6 Forensic 10 05 05 20
Total 70 65 55 190
Source: Field Survey, 2012

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9. Sample Size and Sampling Technique

In determining the sample size, we used Yamane (1968) formula to select our sample from the population. The formula is
given thus by Adefila (2008):
୒
 ൌ ଵା୒ሺୣሻమ
Where:
n = Sample Size
N = Total population (190)
1 = Constant
e = Allowable margin to error. In this case, we consider 5% (0.05) error margin adequate
(e)2 = (0.05)2 = 0.0025
ଵଽ଴
ଵାଵଽ଴ሺ଴Ǥ଴଴ଶହሻ
ଵଽ଴
ଵା଴Ǥସ଻ହሻ
ଵଽ଴
190
ଵǤସ଻ହሻ
= 129
The sample size n = 129
After selecting the sample, we stratified this proportionately to the agencies depending on the proportion of the
entire population that comes from each of the units in the agencies using Kurnar (1976) proportional allocation formula as
cited by Adefila (2008), thus:
୬ሺ୒ୌሻ
ൌ ୒
Where:
NH = Population of the stratum
n = The overall sample size
N = The overall population

Table 2: Distribution of sample among selected units in the agencies

EFCC ICPC CCB

S/No Units
No. of Staff Administered No of Staff Administered No. of Staff Administered
1 Finance and Accounts 15 10 15 10 15 10
2 Audit 15 10 15 10 11 07
3 Legal and Prosecution 10 07 10 07 10 07
4 General Investigation 10 07 10 07 07 05
5 Financial Inteligence 10 07 10 07 07 05
6 Forensic 10 07 05 07 05 03
Total 70 48 65 44 55 37

Source: Field Survey, 2012

From table 3.2 above, we have a total of 48 staff from EFCC, 44 staff from ICPC, and 37 staff from CCB has filled the
questionnaire.

10. Method of Data Analysis

Data from the questionnaire administered were used in testing the hypotheses of the study using Analysis of Variance
(ANOVA), and Time Series Analysis with the aid of SPSS version 17.0.

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11. Results and Discussion

11.1 Test of Hypothesis One

H01: Forensic Accounting Skills and Techniques have no significant effect on uncovering fraud in the Nigerian public
sector.

Table 3a: Observed Frequency Table

Variables Question 9 Question 16 Question 18 Question 19 Question 20 Total

S.A 72 48 30 40 43 233
A 35 69 77 69 69 319
S.D 13 - 5 5 5 31
D - 3 8 3 3 17
TOTAL 120 120 120 120 120 600

Source: Adopted from questionnaire, (2013)

11.1.1 Analysis of Variance (ANOVA)

Table 3b: Descriptive Sample

95% Confidence Interval for Mean

N Mean Std. Deviation Std. Error Minimum Maximum
Lower Bound Upper Bound
strongly agree 5 46.60 15.646 6.997 27.17 66.03 30 72
Agree 5 63.80 16.468 7.365 43.35 84.25 35 77
Strongly disagree 5 6.20 4.764 2.131 .28 12.12 0 13
Disagree 5 3.40 2.881 1.288 -.18 6.98 0 8
Total 20 30.00 28.698 6.417 16.57 43.43 0 77

Source: SPSS Version 17.0

Table 3c: ANOVA

Sample
Sum of Squares Df Mean Square F Sig.
Between Groups 13460.000 3 4486.667 32.809 .000
Within Groups 2188.000 16 136.750
Total 15648.000 19

Source: SPSS Version 17.0

The result of data analysis in table 3b and 3c reveals that the mean is statistical significant at 5% level of significance.
The F (3, 16) = 32.809 is greater than the F(tab) = 3.24, therefore the estimated parameters are statistically significant.
This means that the Null Hypothesis is rejected while accepting the alternate hypothesis because the F (3, 16) = 32.809
is greater than the F(tab) = 3.24. We therefore concluded that Forensic Accounting Skills and Techniques have
significant effect in uncovering fraud in the Nigerian public sector.

11.2 Test of Hypothesis II

H02: Forensic Accounting Skills and Techniques have no influence on reducing fraud in the Nigerian public sector.

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Table 4a: Created Series (showing case number of Non-missing values)

Cases Number of Non-Missing Values

Series Name First Last N of Valid Cases Creating Function
1 Fraund_1 2 10 9 Diff(Frauds,1)

Source: Spss Version 17.0

Table 4b: Time Series Analysis Table.

S/no Years Frauds Frauds_1 Si

1 2002 374732395.00 - -
2 2003 778695657.98 403963262.98 403963262.98
3 2004 44316186.07 -734379471.91 -734379471.91
4 2005 41201500.00 -3114686.07 -3114686.07
5 2006 25583745.00 -15617755.00 -15617755.00
6 2007 20320940.00 -5262805.00 -5262805.00
7 2008 6539801.98 -13781138.02 -13781138.02
8 2009 3254438.86 -3285363.12 -3285363.12
9 2010 1379758.47 -1874680.39 -1874680.39
10 2011 1084400.00 -295358.47 -295358.47

Source: SPSS Version 17.0

The above table shows a downwards movement over the period, apart from year 2002 and 2003 where there was an
upward movement in fraud cases with a difference of N403963262.98. The difference occurred when the Anti-Corruption
Agencies were not seriously applying Forensic Accounting Skills and Techniques in their fraud investigation. After 2003,
there was a consistent downward movement up to 2011. However, the downward movement became more from 2009 to
2011 when Forensic Accounting was fully in place by Anti-Corruption Agencies particularly EFCC and ICPC. Also the
negative sign on the movement indicated that fraud has been reduced overtime. The implication here is that the uses of
Forensic Accounting Skills and Techniques have helped Anti-Corruption Agencies in reducing fraud in the Nigerian public
sector.
From the above result the null hypothesis has been rejected while accepting the alternate hypothesis. We
therefore concluded that Forensic Accounting Skills and Techniques have influence on reducing fraud in the Nigerian
public sector.

12. Discussion of Results

The findings from the test of hypothesis one revealed that, forensic accounting skills and techniques have significant
effect on uncovering fraud in the Nigerian public sector. This is in line with the view of Abiola (2009) who stated that the
involvement of forensic accounting has raised the hope of uncovering fraud globally. He attested that forensic accounting
has helped to uncovering fraud and corruption in countries such as Britain, Canada, Germany and United States where it
is in use.
The findings from the test of hypothesis two revealed that, forensic accounting skills and techniques have
influence on reducing fraud in the Nigerian public sector. This is supported by the view of Abiola (2009) who state that
the involvement of Forensic Accounting Skills and Techniques in fraud investigation has raised the hope of reducing
fraud globally. He attested to the fact that Forensic Accounting has reduced fraud and corruption to the bearest minimum
in developed countries using their service

13. Conclusion

The study analyzed why attention has to be given to the question of fraud investigation in the public sector of Nigeria by
Anti-Corruption Agencies with the aid of Forensic Accountants. It should be emphasized that whether within the business
world or in the public sector, the ultimate responsibility for investigating fraud cases rests with Anti-Corruption Agencies

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while discouraging and preventing fraud and corrupt practices rest with the government and management.
Above all, result of the study revealed forensic accounting skills and techniques have significant effect on
uncovering fraud in the Nigerian public sector and forensic accounting skills and techniques has influence on reducing
fraud in the Nigerian public sector .
We conclude as follows;
Forensic accounting practice is neither new to the developed nor is it in developing nations. That fraud in the
Nigerian public sector is alarming and is not only crumbling the economy but also affecting innocent nation standard of
living and image. That the Applications of Forensic Accounting Skills and Techniques have contributed greatly to Anti-
Corruption Agencies in Nigeria in the investigation of complex fraud cases particularly EFCC and ICPC as more money
has so far been recovered.

14. Recommendations

Consequent upon several revelations from the research conducted, there is need to make some recommendations, as
follow:
i. Information technology: As fraud is becoming more sophisticated on daily basis and need sophisticated tools
to uncover, forensic accountants , the public sector and Anti-corruption Agencies should take advantage of the
modern accounting and auditing soft wares to enhance efficiency and smooth operation of the tasks of
detection prevention and recovering through the application of relevant information technology. To further
enhance the performance of forensic accountants on the performance of the public sector, the code of
conducts should be put in place and properly monitored. The institute of chartered accountings of Nigeria
(ICAN) and the Association of National Accountants of Nigeria (ANAN). Should encourage formalization and
specialization in the field of forensic accounting in their curricula and the academia should emphasize skills
development in the field of forensic accounting through teaching and research in the area of forensic
accounting at BSC, MSC, PhD, HND and ND levels.
ii. Government should establish a Public Recovery Fund (PRF) where money recovered through forensic
accounting should be kept and this money should be properly used to enhance efficient and effective
performance in the public sector. Training and guidance are vital in maintaining the effectiveness of the
strategy for the detection, prevention and investigation of fraud and its general credibility. The government
needs to support induction and work related training, particularly for employees involved in internal control
system, accounting units and those in investigative units of all Anti-Corruption Agencies, to ensure their
responsibilities and duties are regularly highlighted and reinforced and that best practices are followed across
the nation services. Significant forensic accounting or any Anti-Fraud strategy can only work if heads of
departments and senior managers or staff are committed to it. The Anti-Corruption Agencies like the EFCC,
ICPC and CCB should ensure they have their technical, investigative and accounting staff trained in the field
of Forensic Accounting and the public sector (government) should develop interest in Forensic Accounting by
making sure that Forensic accounting is institutionalize in all ministries departments and parastatals to build
up effective internal control system that will enhance more effective performance in the public sector in
Nigeria. Adequate structures and mechanism such as Forensic laboratories must be improved open in all Anti-
Corruption Agencies in Nigeria.

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Black Law Dictionary (1997). 5th Edition, USA: West Publishing and Co.
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