Forensic Accounting and Fraud Management

Igbinedion University Journal of Accounting | Vol.
2 August, 2016 | 245
FORENSIC ACCOUNTING AND FRAUD MANAGEMENT:

EVIDENCE FROM NIGERIA
EHIOGHIREN, Efe Efosa

(Bsc, M.sc, CNA)
PhD student Department of accountancy,
Nnamdi Azikiwe University, Awka, Nigeria
Correspondence: [email protected]
ATU, Omimi- Ejoor Osaretin Kingsley

(B.Sc, M.Sc, FCA, FCTI, Ph.D)
HOD, Department of Accounting, Igbinedion University, Okada
Correspondence: [email protected], +2348032931266
ABSTRACT
Fraudulent practices among Nigerians are major challenges

facing the development of the country. The federal government
has been making several efforts in tackling these dreadful
menaces by setting up many anti corruption institutions to
reduce cases of fraud and other activity of financial and
economic crimes but the efforts seemed not to have yielded the
desire results or have not been effective. No doubt, financial
crimes have affected individuals and corporate organizations
negatively. This has put accounting professional bodies into a
new perception and paradigm that go beyond statutory audit.
The objective of this study focus on forensic accounting and
fraud management, evidence from Nigeria, primary sources of
data were appropriately used. 572 questionnaires were
administered. The Researchers Use SPSS 21 to test the
Igbinedion University Journal of Accounting | Vol. 2 August, 2016 | 246
hypothesis to determine the F-value. The findings are that

Forensic accounting significantly influences fraud detection and
control, also, that there is significant difference between the
duties of professional Forensic Accountants and that of
traditional External Auditors. The researchers recommended
that trained experts like the Professional Forensic Accountants
should conduct the investigation, where there is evidence of
fraud, appropriate disciplinary action in accordance with the
Provision of rules should be implemented, and the
restructuring of corruption agencies by the government for
better performance. These agencies should have the will power
and courage to perform optimally. The professional
accountancy bodies in Nigeria should ensure that forensic
accountants are trained with modern skills of forensic
accounting procedures, the financial reporting council should
ensure harmonization and unification of the conflicting
regulatory codes that will guarantee best standards and
regulations are established for best practice and service
delivery.
Keywords; forensic accounting, Financial/ Economic

crimes, Fraud management, External Auditor
1.0. Background to the Study

The widespread frauds in modern organizations have made
traditional auditing and investigation inefficient and ineffective
in the detection and prevention of the various types of frauds
confronting businesses world-wide. (Onuorah and Appah,

2012) The incidence of fraud continues to increase across
private and public sector organizations and across nations.
Fraud is a universal problem as no nations is resistant, although
developing countries and their various states suffer the most
pain. Today; modern organized financial crimes have appeared.
Financial crimes such as employee theft, payroll frauds,
fraudulent billing systems, management theft, corporate frauds,
insurance fraud, embezzlement, bribery, bankruptcy, security
fraud (EFCC, 2004), among others, have taken the centre stage
in the scheme of things; and on the scale of private, public and
governmental preference. Financial crimes today have grown
wild, and the emergence of computer software coupled with the
advent of internet facilities has compounded the problem of
financial crimes. Besides, the detection or minimization of these
crimes are made more difficult and committing these crimes
much easier. (Izedonmi, and Ibadin, 2012). All these, no doubt,
remain outside the ambit of the statutory auditor to report on
except he is placed on inquiry. The statutory auditor is not
primarily bound to detect fraud and errors. His responsibility is
defined by Sec. 359 (CAMA, 2004) and the relevant auditing
standards. (Uwojori and Asaolu, 2009) added that quite
unfortunately, is the inability of the statutory auditor
constrained by the relevant statutes and standards, to deal with
financial crimes. Okunbor and Obaretin (2010) reported that
the spates of corporate failures have placed greater
responsibility and function on accountants to equip themselves

with the skills to identify and act upon indicators of poor
corporate governance, mismanagement, frauds and other
wrong doings. It has become imperative for accountants at all
levels to have the requisite skills and knowledge for identifying,
discovering as well as preserving the evidence of all forms of
irregularities and fraud. Therefore, fraud requires more
sophisticated approach from preventative to detection. One of
the modern approaches that can be used from the prevention to
detection is called forensic accounting.
Forensic accounting is a rapidly growing field of accounting that
describes the engagement that results from actual or
anticipated dispute or litigations. (Okoye and Gbegi, 2013)
concur that Forensic means suitable for use in a court of
law , and it is to that standard that Forensic Accountants
generally work. Forensic Accounting is an investigative style of
accounting used to determine whether an individual or an
organization has engaged in any illegal financial activities.
Professional Forensic Accountant may work for government or
public accounting firm. Although, forensic accounting has been
in existence for several decades, it has evolved over time to
include several types of financial information scrutiny. Forensic
accounting can, therefore, be seen as an aspect of accounting
that is suitable for legal review and offering the highest level of
assurance (Apostolou, Hassell & Webber, 2000). Also, forensic
accounting encompasses three major areas, investigation,
dispute resolution and litigation support. Manning (2002)

defines it as the combination of accounting, auditing and
investigative skills to standard by the courts to address issues
in dispute in the context of civil and criminal litigation. Ojaide
(2000) noted that there is an alarming increase in the number
of fraud and fraudulent activities in Nigeria, requiring the
visibility of forensic accounting services. Also the recent
happening in the forensic audit of the oil sector where the
present government is demanding for another forensic audit
exercises to be carried out after a Nigerian audit firm has
presented a report to the authority. In the light of the above
this study therefore looks into the relevance of forensic
accounting and fraud management in the effective reduction of
fraudulent practices in Nigeria.
1.1. Statement of the Problem
In recent times, series of fraud have been committed both in the
public sector and private sector of the economy. These in no
doubt are perpetrated under the supervision of the internal
auditors of the organization. Ojaide (2000) added that there is
an alarming increase in the number of fraud and fraudulent
activities in Nigeria emphasizing the visibility of forensic
accounting services. Okoye and Akamobi (2009) Owojori and
Asaolu (2009), Izedomin and Mgbame ( 2011), Kasum (2009)
have all acknowledge in their separate works, the increasing
incidence of fraud and fraudulent activities in Nigeria and these
studies have argued that in Nigeria, financial fraud is gradually
becoming a normal way of life. (Modugu and Anyaduba 2013)

submitted that financial irregularities have becomes the
specialty of both private and public sector in Nigeria as
individual perpetrates fraud and corrupt practice according to
the capacity of their office. Consequently, there is a general
expectation that forensic accounting may be able to stem the
tide of financial malfeasance witnessed in most sectors of the
Nigerian economy. However, there has not been adequate
emphasis, especially survey evidence on how forensic
accounting can help curtail financial and economic crimes
beyond the several unreliable views that abound. Consequently,
the study fills this gap of forensic accounting and fraud
management evident from Nigeria.
1.2. Objective of the study
The general objective of this study is to assess whether forensic
accounting and fraud management help in the effective
reduction and control of fraudulent practices in Nigeria.
The specific objectives of this study include:
i. To examine whether effective forensic accounting
significantly influence fraud reduction control.
ii. To examine if there is significance difference between
professional Forensic Accountants and traditional External
Auditors.
1.3. Research questions
The study has the following research questions;
1. What is the extent of influence that effectiveness of

forensic accounting has on fraud control and
management
2. How significantly different are the duties of professional
Forensic Accountants and traditional External Auditors.
1.4. Statement of Hypothesis
H01: Forensic accounting does not significantly influence
fraud control and management.
H02: There is no significant difference between the duties of
professional Accountants and that of traditional External
Auditors.
2.0. Literature Review

2.1.Theoretical Framework
This study is anchored on the Operant condition theory. This
theory was postulated by Skinner B. F. He asserts that behavior
is determined by the environmental consequences it produces
for the individual involved. (Hollin, 1998). This implies that,
behavior that produces desirable consequences will increase in
frequencies (Blackburn, 1993). The reverse will therefore be
the case when the behavior produces undesirable
consequences. Behavior therefore operates on the premise of
reinforcing or punishing results. Conclusively therefore,
Feldman (1993) posit that if criminal activities are rewarding
(prestige, money or feeling of adequacies) there will be
tendencies of continual increase of such crimes while the
reverse will be the case when the crimes are punished by arrest
or shunned. Thus, this study aims to determine the role forensic
accounting will play in ensuring crimes are punished in order to
reduce its occurrences.
2.2. Related Literatures
2.2.1. Nature of fraud
The concept of fraud in itself disordered. But scholars vary
significantly in their expressions about fraud. The cause is
sometimes confused with effect. Defining fraud is as difficult as
identifying it. Fraud is defined by EFCC : as . . . the
non-violent criminal and illicit activity committed with
objective of earning wealth illegally either individually or in a
group or organized manner thereby violating existing
legislation governing the economic activities of government and
its administration . . . Nwaze (2012) defined fraud as a
predetermined as well as planned tricky process or device
usually undertaken by a person or group of persons with the
sole aim of cheating another person or organisation to gain ill-
gotten advantage which would not have accrued in the absence
of such deceptive procedure.
(Onuorah and Appah, 2012) as cited in Bello (2001) and
quoting Russel (1978) remarks that the term fraud is generic
and is used in various ways. Okafor (2004) added that fraud
embraces all the multifarious means which human ingenuity
can devise, which are resorted to by an individual to get
advantage over another in false representation. No definite and
invariable rule can be laid down as a general proposition in

defining fraud as it includes surprise, trick, cunning and unfair
ways by which another is cheated fraudulently. Ojaide (2000)
Ramamoorti (2007) argued that fraud is a human endeavor,
involving deception, purposeful intent, intensity of desire, risk
of apprehension, violation of trust, and rationalization. It is
therefore important to understand the psychological factors
that might influence the behavior of fraud perpetrators. The
rationale for drawing on behavioral science built on evident
from the intuition that one needs to think like a crook to catch a
crook. Karwai (2002), Ajie and Ezi (2000) are of the view of
fraud in organizations vary widely in nature, character and
method of operation in general. Fraud may be classified into
two broad ways: nature of fraudsters and method employed in
carrying out the fraud. On the basis of the nature of the
fraudsters, fraud may be categorized into three groups, namely;
internal, external and mixed frauds. Internal fraud relates to
those committed by members of staff and directors of the
organizations while external fraud is committed by persons not
connected with the organization and mixed fraud involves
outsiders colluding with the staff and directors of the
organization. Karwai (2002) reported that the identification of
the causes of fraud is very difficult. He stated that modern day
organizations frauds usually involve a complex web of
conspiracy and deception that often maskthe actual cause.
2.2.2. Concept of Forensic Accounting

The term forensic accounting was coined by Peloubet in ,
he said, forensic accounting is the application of accounting
knowledge and investigative skills to identify and resolve legal
issues. It is the science of using accounting as a tool to identify
and develop proof of money flow. These tools and/or
techniques, skills and knowledge can be invaluable for fraud
and forensic accounting investigators. Forensic accounting is
the integration of accounting, auditing and investigative skills
(Dada, Owolabi & Okwu, 2013), (Zysman, 2004). Dhar and
Sarkar (2010) define forensic accounting as the application of
accounting concepts and techniques to legal problems. It
demands reporting, where accountability of the fraud is
established and the report is considered as evidence in the
court of law or in administrative proceedings. According to the
Association of Certified Fraud Examiners (ACFE) forensic
accounting is the use of skills in potential or real civil or
criminal disputes, including generally accepted accounting and
auditing principles; establishing losses or profit, income,
property or damage, estimations of internal controls, frauds
and others that involve inclusion of accounting expertise into
the legal system (www.forensicaccounting.com/there.htm.)
(Okoye and Gbegi, 2013) agrees that forensic accounting also
called investigative accounting or fraud audit is a merger of
forensic science and accounting. Forensic science according to
Crumbley may be defined as application of the laws of
nature to the laws of man. (e 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. Joshi (2003) further sees forensic
accounting as the application of specialized knowledge and
specified skill to stumble up on the evidence of economic
translations. Dhar and Sarkar (2010) defined forensic
accounting as the application of accounting concepts and
techniques to legal problems. While Degboro and Olofinsola
(2007) in their view noted that forensic investigation is about
the determination and establishment of fact in support of legal
case. That is, to use forensic techniques to detect and
investigate a crime is to expose all its attending features and
identify the culprits.
In the view of Howard and Sheetz (2006), forensic accounting is
the process of interpreting, summarizing and presenting
complex financial issues clearly, succinctly and factually often
in a court of law as an expert. It is concerned with the use of
accounting discipline to help determine issues of facts in
business litigation (Okunbor and Obaretin, 2010). Forensic
accounting is a discipline that has its own models and
methodologies of investigative procedures that search for
assurance, attestation and advisory perspective to produce
legal evidence. A forensic investigation may be grounded in
accounting, medicine, engineering or some other discipline.

Forensic audit is an examination of evidence regarding an
assertion to determine its correspondence to established
criteria carried out in a manner suitable to the court.
It is concerned with the evidentiary nature of accounting data,
and as a practical field concerned with accounting fraud and
forensic auditing; compliance, due diligence and risk
assessment; detection of financial misrepresentation and
financial statement fraud (Skousen and Wright, 2008); tax
evasion; bankruptcy and valuation studies; violation of
accounting regulation (Dhar and Sarkar, 2010)
Gray (2008) believes that those qualified to handle forensic
investigation are forensic accountants which are a
combination of an auditor and private investigators. Knowledge
and skills include investigative skills, research, law, quantitative
methods, finance, auditing, accounting and law enforcement
officer insights. A forensic accountant s primary duty is to
analyze, interpret, summarize and present complex financial
and business-related issues in a manner that is both readily
understandable by the layman
2.2.3. Financial crimes

Financial crimes cannot be precisely defined but can be
described. No one description suffices. Wikimedia dictionary
describes financial crimes as crimes against property, involving
the unlawful conversion of property belonging to another to
one‟s own. Williams incorporates corruptions to his

description of financial crimes. Other components of FCs cited
in William‟s description include bribes cronyism,
nepotism, political donation, kickbacks, artificial pricing and
frauds of all kinds.
The array of components of financial crimes, some of which are
highlighted above, is not exhaustive. The EFCC Act (2004)
attempts to capture the variety of economic and financial
crimes found either within or outside the organization. The
salient issues in EFCC‟s description include violent,
criminal and illicit activities committed with the objective of
earning wealth illegally… in a manner that violates existing
legislation… and these include any form of fraud, narcotic drug,
trafficking, money laundering, embezzlement, bribery, looting
and any form of corrupt malpractices and child labour, illegal
oil bunkering and illegal mining, tax evasion, foreign exchange
malpractice including counterfeiting, currency, theft of
intellectual property and piracy, open market abuse, dumping
of toxic waste and prohibited goods, damage to the
environment, etc.
This description is all-embracing and conceivably includes
financial crimes in corporate organization and those discussed
by provision authors (William, 2005 and Khan, 2005). At the
level of corporate organizations, financial crimes were known
to have led to the collapse of such organizations. Cotton (2003)
as cited in (Izedonmi, and Ibadin, 2012) attributes the collapse
of Enron, WorldCom, Tyco, Adelphia, to corporate fraud. $460

billion was said to have been lost. In Nigeria, Cadbury Nig Plc
whose books were criminally manipulated by management was
attributed to have lost 15 billion Naira. In the case of the nine
collapsed commercial banks in Nigeria, about one trillion naira
was reported to have been lost through different financial
malpractice. This and other financial and economic crimes are
being investigated by EFCC under the EFCC Act (2004).
2.3. Fraud management
An understanding of effective fraud and forensic accounting
techniques will assist Professional Forensic Accountants in
identifying illegal activity and discovering and preserving
evidence (Houck et al 2006). Hence, it is important to
understand that the role of a forensic accountant is different
from that of regular auditor. Crumbley and Apostolou (2005) as
cited by (Okoye and Gbegi, 2013) describes a forensic
accountant as someone who can look behind the faced-out,
accept the records, at their face value-someone who has a
suspicious mind that (considers that) the documents he or she
is looking at may not be what they purport to be and someone
who has the expertise to go out and conduct very detailed
interviews of individuals to develop the truth, especially if some
are presumed to be lying.
Forensic accounting as 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

documents financial fraud and white-collar crimes such as
embezzlement and investigate allegations of fraud, estimates
losses damages and assets and analyses complex financial
transactions. They provide those services for corporation,
attorney, criminal investigators and the government (Coenen,
, Zysman, the forensic accountant s engagements
are usually geared towards finding where money went, how it
got there, and who was responsible. According to Bhasin
(2007), forensic accountants are trained to look beyond the
numbers and deal with the business realities of situations.
Analysis, interpretation, summarization and the presentation of
complex financial business related issues are prominent
features of the profession. He further reported that the
activities of forensic accountants involve: investigating and
analyzing financial evidence; developing computerized
applications to assists in the analysis and presentation of
financial evidence; communicating their findings in the form of
reports, exhibits and collections of documents; and assisting in
legal proceedings, including testifying in courts, as an expert
witness and preparing visual aids to support trial evidence. In
the same vein Degboro and Olofinsola (2007) stated that
forensic accountants provide assistance of accounting nature in
financial criminal and related economic matters involving
existing or pending cases.
In financial crimes scenarios, the forensic accountant must

appreciate the seriousness of a situation and look beyond the
game of numbers. It must go beyond being a detective or
regular accounting. The field of forensic accounting is the
product of forensic science and accounting, Crumbley (2003)
describes forensic scientists as the examiners and interpreters
of evidence and facts in legal matters. The science as used have
according to Sadiq (2008) involves the examination and
interpretation of economic information. Forensic accountant
provides information that is used as evidence in the court of
law. He investigates, appraises and documents financial fraud
and white-collar crimes (such as embezzlement and frauds) by
employees, management and other frauds or crimes in the
organization. He estimates losses, damages and assets
misappropriation and any other complex financial transaction.
The whole process ends in the production of report which is
tendered to assist in legal adjudication. The forensic
accountants, in their investigation, use some investigative
techniques in financial crimes.
2.4. Challenges of Forensic Accounting Application in

Nigeria
With the increase rise in financial accounting fraud in the
current economic scenario experienced, financial accounting
fraud detection has become an emerging issue of great
importance for academic, research and industries. The failure of
internal auditing system of the organizations in identifying the

accounting frauds has led to use of specialized procedures to
detect financial accounting fraud, collective known as forensic
accounting (Sharma and Panigrahi 2012). As cited by (Modugu,
and Anyaduba, 2013). Though financial fraud in Nigeria has
witnessed highly publicized cases especially in the banking
system, Enyi (2009) undertook a study to offer suggestions
using real case problem on how to apply forensic accounting in
investigating variances and suspected fraudulent activities in
manufacturing processes and thus suggests that the application
of forensic accounting applies to all scenes where fraud is a
possibility.
Okoye and Akenbor (2009) commenting on the application of
forensic accounting in developing economies like Nigeria, notes
that forensic accounting is faced with so many bottlenecks.
These includes inability to operate more independently and
effectively, lack of technical capabilities and inability of
gathering information that is admissible in a court of law, less
focus on offering service quality, conflicting regulatory codes
and standards, lack of harmonization and unification of all the
existing sectoral corporate governance codes applicable in
Nigeria (CBN, SEC, and PENCOM Codes).
Crumbly (2001), Grippo and Ibex (2003) added that the
challenges confronting the application of forensic accounting is
such that it lack the admissibility, of evidence in compliance
with the laws of evidence which is crucial to successful
prosecutions of criminal and civil claims. Also, the globalization

of the economy and the fact that a fraudster can be based
anywhere in the world has led to the problem of inter-
jurisdiction.
Degboro and Olofinsola (2007) note that an important
challenge to the application of forensic accounting in financial
fraud control and management in Nigeria is that the law is not
always up to date with the latest advancements in technology.
(Modugu, and Anyaduba, 2013) concur that forensic accounting
is seen as an expensive service that only big organizations can
afford. Thus, most organization prefers to settle the issue
outside the court to avoid the expensive cost and the risk of bad
and negative publicity on their corporate image. Furthermore,
forensic accounting is a new trend particularly in developing
economies. Hence, professional accountants with adequate skill
and technical know-how on forensic issues are hardly available.
3.0. Methodology
The choice of design in any research depends on the purpose of
the problem and variable alternatives for the problem of that
nature. The survey research design is used in this study. The
population of the study comprises four diverse groups; auditors
(Internal and External), those involved in financial statement
compilation, users, and academics. In considering sample size,
Saunders and Thornhill (2003) suggest that a minimum
number of thirty (30) for statistical analyses provide a useful
rule of thumb. Nevertheless, we adopted a sample of five

hundred and seventy two (572) respondents which consist of
the public and private companies accountants, internal and
external auditors, top management staff, shareholder as well as
academician in Edo and Delta States.
The sampling was done using simple random sampling.
Primary data was used in the study. The data were generated
using well-structured likert scale questionnaire with 5 points
scale, strongly agree-5, Agree-4, Undecided-3, disagree-2 and
strongly disagree-1 are logically employed to quantitatively
reflect this order of ranking and to ensure validity of the
questionnaire used for the study.
4.0. Presentation of results and Discussion of findings
H01: Forensic accounting does not significantly influence fraud

control and management.
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .810a .656 .641 .36092
Source: The researcher using SPSS 21
Coefficientsa
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Beta
Error
(Constant) 3.271 .176 18.625 .000
Forensic .516 .085 1.165 6.094 .000

accounting can be
used to uncover
diverted
fraudulent
practices.
1
Forensic -.198 .090 -.421 -2.201 .033
accounting can
Identify
misappropriated
assets and identify
reversible insider
transactions
a. Dependent Variable: Forensic accounting is effective as a
fraud detection tool
Decision Rule: If the F-value is greater than 5%, accept the null
hypothesis otherwise reject if and accept the alternative.
The R-square of 65% shows that the independent variables can
explain the dependent variable 65.5%. The regression result
shows that an effective tool in uncovering diverted fraudulent

practices and can identify misappropriated asset and reversible
insider transactions; this is shown in the F-value of 0.000 and
0.033 respectively. We therefore reject the null hypothesis and
accept the alternative which states that Forensic accounting
significantly influence fraud detection and control. However,
the B-value shows that forensic accounting has a negative
influence the identification of reversible insider transactions as
evidenced by a B-value of -0.198.
H02: There is no significant difference between the duties of
professional Forensic Accountants and that of traditional
External Auditors
Source: The Researchers Using SPSS 21
Decision: Accept the null hypothesis if the F-value is greater

than 5%. The result shows that there is a significant difference
in forensic duties and that of Auditors as shown by the F-values
of 0.031, 0,003 and 0.018 respectively. We therefore reject the

null hypothesis and accept the alternative which states that:
there is significant difference between the duties of
professional Forensic Accountants and that of traditional
External Auditors.
5.1. Conclusions and recommendations

The study investigates forensic accounting and fraud
management a way of effective reduction and control of
fraudulent practices in Nigeria. Fraudulent practices are real
and have become prevalent in contemporary business
environment. This trend needs to be arrested before it is too
late. This study found that forensic accounting is an effective
tool in uncovering diverted fraudulent practices and can
identify misappropriated asset and reversible insider
transactions; this significantly influence fraud detection and
control. Also, the study reveals that there is significant
difference between the duties of professional Forensic
Accountants and that of traditional External Auditors.
We therefore, conclude that accountants should be alert to
potential fraud and other illegal activities while performing
their duties. They can also be made to provide significant
assistance in preventing, investigating and resolving such
issues. On the basis of the above , the researchers suggests that
trained experts like the Professional Forensic Accountants
should conduct the investigation, where there is evidence of
fraud, appropriate disciplinary action in accordance with the

Provision of rules should be implemented, and the
restructuring of corruption agencies by the government for
better performance. The current effort of the Federal
government in fighting corruption should be encourage and
sustained. The several professional accountancy bodies in
Nigeria should ensure that forensic accountants are trained
with modern skills of forensic accounting procedures, the
financial reporting council should ensure harmonization and
unification of the conflicting regulatory codes that will
guarantee best standards and regulations are established for
best practice and service delivery.
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Section B: Questions to Test the Study Hypotheses

Section A: Forensic Accounting and Financial Fraud Control and
management
1. Forensic accounting can be used to uncover diverted
fraudulent practices.
(a)Strongly Agree (b) Agree (c) Undecided (d) Disagree (e)
Strongly Disagree
2. Forensic accounting can Identify misappropriated assets and
identify reversible insider transactions;
(a) Strongly Agree (b) Agree (c) Undecided (d) Disagree (e)
Strongly Disagree
3. Forensic accounting is effective as a fraud detection tool
Strongly Disagree
4. Forensic Accounting is solely enough as a tool to prevent
suspicious or fraudulent transactions (a) Strongly Agree (b)
Agree (c) Undecided (d) Disagree (e) Strongly Disagree
5. Forensic accountants do not bear any risk under forensic
accounting practice; it specifically covers risk of fraud.
Strongly Disagree
Forensic Accounting, Internal Control Quality and Financial
Reporting Credibility
6. Forensic accounting is effective in designing internal control
system
Strongly Disagree
7. Forensic accounting is effective in assessing, monitoring and
evaluation of internal control systems
Strongly Disagree
8. Forensic accounting enhances the quality of financial
reporting
Strongly Disagree
9. Forensic accounting improves stakeholder trust and
confidence in corporate financial statement (a) Strongly Agree
(b) Agree (c) Undecided (d) Disagree (e) Strongly Disagree
10. Accountants/auditors with forensic accounting skills will
deliver more quality financial reporting. (a) Strongly Agree (b)
Agree (c) Undecided (d) Disagree (e) Strongly Disagree
11. Forensic investigations deals directly with fraud
investigation and this reduces financial reporting expectations
gap a Strongly Agree b Agree c Undecided d Disagree
(e) Strongly Disagree
12. Traditional External Auditors are not influence by
management (a) Strongly Agree (b) Agree (c) Undecided (d)
Disagree (e) Strongly Disagree
Table 1: Forensic Accounting and Financial Fraud Control and

management
S/N SA A U D SD
1 Forensic accounting can be 216 120 50 78 46
used to uncover diverted
fraudulent practices.
2 Forensic accounting can 307 114 9 37 43
Identify misappropriated
assets and identify
reversible insider
transactions
3 Forensic accounting is 221 279 2 6 2
effective as a fraud detection
tool
4 Forensic Accounting is solely 43 37 44 189 197
enough as a tool to prevent
suspicious or fraudulent
transactions
5 Forensic accountants do not 55 35 62 157 201
bear any risk under forensic
accounting practice; it
specifically covers risk of
fraud.
Table 2 Forensic Accounting, Internal Control Quality and

Financial Reporting Credibility
S/N SA A U D SD
6 Forensic accounting is effective 189 242 9 28 42
in designing internal control
system
7 Forensic accounting is effective 241 196 4 29 40
in assessing, monitoring and
evaluation of internal control
systems
8 Forensic accounting enhances 241 217 5 33 14
the quality of financial
reporting
9 Forensic accounting improves 311 94 7 67 31
stakeholder trust and
confidence in corporate
financial statement
10 Accountants/auditors with 313 166 - 21 10
forensic accounting skills will
deliver more quality financial
reporting.
11 Forensic investigations deals 270 207 7 5 21
directly with fraud
investigation and this reduces
financial reporting
expectations gap
12 Traditional External Auditors 237 219 8 26 20
are not influence by
management
THE IMPACT OF IFRS ACCOUNTING NUMBERS ON VALUE

RELEVANCE IN NIGERIAN QUOTED COMPANIES
OBASI, .O. Rosemary

Lecturer: Department of Accounting,
Benson Idahosa University, Benin, Edo State
Correspondence: [email protected] /[email protected]
EKWUEME, .C. Mercilina (Ph.D)

Nnamdi Azikiwe University, Awka, Anambra State.
OSUYALI, .H. Nkechiyem

Benson Idahosa University, Benin, Edo State
ABSTRACT
The study assessed the impact of IFRS accounting numbers on
value relevance in quoted companies in Nigeria. The objective
of this study is to determine if the adoption of lFRS has
improved value relevance of quoted companies in Nigeria. The
researchers adopted the use of secondary data by way of
annual reports of the quoted companies in Nigeria. The Taro
Yamani formula was used to derive the sample size from the
population of one hundred and eighty-three quoted companies
on the floor of the Nigerian Stock Exchange from which a
sample size of one hundred and twenty-six companies with
error limit of five percent appropriate for the study was
adopted. We adopted the cross sectional and longitudinal
design and thus compared the pre-IFRS and post IFRS financial
statements for over a period of six years (2008-2013). In

analyzing, the regression analysis was used. Findings from the
analysis showed that there is no significant impact on the value
relevance of IFRS financial statement. The study therefore
recommends that companies should ensure that reporting
model is amended to suit disclosures and reporting
requirements of IFRS.
KEYWORDS: Value relevance, IFRS Financial statement,

Pre-IFRS, Post-IFRS,
Accounting numbers
1.0. INTRODUCTION
Information emanating from financial reporting is
regarded as useful when it faithfully represents the economic
substance of an organization in terms of relevance, reliability,
and comparability (Spiceland, Sepe & Tomassini, 2001). High
quality accounting information is essential for well functioning
capital markets and economy as a whole and as such should be
of importance to investors, companies and accounting standard
setters (Hellstron, 2005). Financial statements still remain the
most important source of externally beneficial information in
companies; it serves as a mirror to the investor. Investors are
not in a position to directly access the performance of the
company in which they are intended to invest, they usually
depend on the financial statements prepared by the
management of the company. Rational investors use those

financial reports and disclosures, among other publically
available information to assess the risk and the value of the
firm. Accounting data, such as earnings per share, is termed
value relevant if it is significantly related to the dependent
variable, which may be expressed by price, return or abnormal
return (Gjerde, Knivsfla & Saettem, 2007). Nevertheless,
financial statement is to provide information about a company
in order to make better decisions for users particularly the
investors (Germon and Meek, 2001). It should also increase the
knowledge of the users and give a decision maker the capacity
to predict future actions.
The concept of value relevance has been defined as the
ability of accounting numbers to summarize the information
underlying the stock prices, thus the value relevance is
indicated by a statistical association between financial
statement and prices or returns (Jianwei & Chunjiao, 2007) .
Studies on value relevance of accounting information are
motivated by the fact that quoted companies use financial
statements as one of the major media of communication with
their equity shareholders and public at large (Vishnani & Shah,
2008). Value relevance is seen as proof of the quality and
usefulness of accounting numbers and as such, it can be
interpreted as the usefulness of accounting data for decision-
making process of investors and its existence is usually by a
positive correlation between market values and book values

(Takacs, 2012).
This study investigates the value relevance of IFRS
financial statement in quoted companies in Nigeria under the
Nigerian stock exchange for over a period of 6 years in the pre
and post financial periods of IFRS application from 2008 to
2013. Thus, the following questions drive the thrust of this
study;
1. To what extent has the adoption of IFRS improved value
relevance in quoted companies in Nigeria?
2. Is there a significant value relevance variable in the pre
and post IFRS financial statement?
The central purpose of carrying out the research work is
to capture the impact of value relevance on IFRS financial
statements in quoted companies in Nigeria. To achieve this, the
following strategic objectives are adopted:
1. To determine if the adoption of IFRS has improved value
relevance in quoted companies in Nigeria.
2. To identify the most significant value relevance variable
in pre and post IFRS financial statement.
The research question gave rise to the following hypothesis;
1. H0: IFRS adoption has not improved value relevance in
quoted companies in Nigeria.
H1: IFRS adoption has improved value relevance in
2. H0: There is no significant value relevance variable in the

pre and post IFRS financial statement.
H1: There is a significant value relevance variable in the
pre and post IFRS financial statement.
Investors, capital market analyst and speculators are always
concerned about the value relevance of financial statement
especially in predicting the market value of firms. Therefore a
study of this nature that examines the value relevance of
accounting information will be immensely beneficial as it will
help consolidate or refute where necessary whatever
perceptions that investors have about the capital market.
2.0. THEORETICAL FRAMEWORK

From past experience, it is known that investors may
temporarily pull financial price away from their long term trend
level. Over reactions may occur, so that excessive optimism
(euphoria) may drive prices unduly high or excessive
pessimism may drive prices unduly low. New theoretical and
empirical arguments have been put forward against the notion
that financial markets are efficient. Market efficiency depends
on the ability of traders to devote time and resources to
gathering and disseminating information. Markets that are
more efficient attract more investors, which translate into
increased market liquidity (Osei, 1998). Investors care about
market efficiency because stock price movements affect their
wealth. More generally, stock market inefficiency may affect
consumption and investment spending and therefore influence
the overall performance of the economy (Adelegan, 2009). A

market is efficient with respect to publicly available
information if it is impossible to make an economic profit by
trading on the basis of the information set (Jensen, 1978). The
efficiency tests, therefore, consist of measuring the ability of the
market to anticipate new information and the speed with which
it adjusts to such data. The efficient market hypothesis (EMH)
has been the subject of consideration. Most evidence in Nigeria,
however, indicates that the Nigerian capital market is efficient
in the weak form efficient (Adelegan, 2004). The success or
failure of management decision can be evaluated only in the
light of the impact of firm stock prices (Remi, 2005). Moreover,
Shiller (2000) supports that stock prices are very much
uncertain and this may not be true because firm s fundamentals
may to a great extent influence stock prices. This argument is
supported by early rejection of a random walk theory by
Porterba and Summer (2000) who argue that there is little
theoretical basis for strong attachment to the null hypothesis
that stock prices follow a random walk.
2.1 Related Studies

2.1.1 Share Price and Return on Equity (ROE)
Shareholders are concerned about their return on investment.
Return on equity is the company's profit after tax divided by the
percentage rate of net assets. The indicators reflect the level of
shareholders equity income, measuring the shareholders into
the company's unit capital receive profits, which companies

create value for shareholders, to measure the efficiency of the
companies using its own capital. In theory, the higher the
modified index values, the better the performance of the
company will be. However, Pratomo and Ismail (2006) stated
that management that has the knowledge to make a company
profitable also has the knowledge and understanding of
financial reporting, which leads to more market share price.
Galani, Gravas and Stavropoulos (2011) also stated that when
performance is high and the company achieves a high margin of
profit, the managerial groups are motivated to report more
information in order to show off good reputation to the
consumers, shareholders, investors and other stakeholders
stock prices. Similarly, the study of Azeem and Kouser (2011)
showed significant positive relation with stock price and return
on equity. Also, Liu and Hu (2005) study found that Return on
equity is positively related with stock prices of the firms. They
further explained that when management are performing
efficiently and utilizing the resource powerfully and gives good
returns on investment it will affect stock price positively
otherwise it has negative effect on stock price. Zhao,(2013)
revealed that in developed stock markets, investors fully obtain
enterprise value on the basis of relevant information to invest
in listed companies. In pursuit of maximization of investment
wealth, the investors are driven by their preference for the
good performance.
2.1.2 Share Price and Earnings per Share (EPS)

The term earnings per share (EPS) represents the portion of a
company s earnings, net of taxes and preferred share dividends,
which is allocated to each ordinary share holder. Earnings per
share (EPS) is widely considered to be the most popular
method of quantifying a firm s profitability and is the industry
standard in determining corporate profitability for
shareholders. EPS is a carefully scrutinized metric that is often
used as a barometer to gauge a company s profitability per unit
of shareholder ownership. As such, EPS is a key driver of share
prices. The firm stock prices have direct purview in the
managerial efficiency which is one of the signals of firm
performances (Remi 2005). One of the components of this firm
performance is earning per share (EPS). EPS is one of the
measures of managerial efficiency as well as firm performance.
Shiller (2000) argued that stock prices can be viewed as a
prediction of investors earnings, therefore, it is reasonable that
the variation in prices should be no greater than variation in
firm EPS. Ball and Brown (2001) conducted a study to
investigate the annual association between annual change in
stock prices and annual changes in firms EPS. The result
obtained shows that annual changes in stock prices cause firm
EPS to change in the following year. Chang and Wang (2008)
conducted a study using Ohlson (1995) model on Taiwan firms
in . The result indicates that firms stock prices movement
has a positive significant relationship with firm EPS. In the
same vein, Chetty, Rosenberg and Saez (2007) explained that

stock prices change behavior when firms EPS are announced.
2.3.3 Share Price and Return on Assets (ROA)
Another important measure of firm performance is return on
assets (ROA). For firms with similar business risk profiles,
pretax ROA is a useful statistic for comparing the performance
of firms because it avoids distortions that are introduced by
differences in capital structure and complications in the tax
laws (Srijaroen & Jiang, 2011). In the stock market, Ghosh, Nag,
and Sirnmans (2000) confirmed that ROA is widely used by
market analysts as a measure of financial performance, as it
measures the efficiency of assets in producing income.
Mishra,Wilson and Williams (2009) indicated that returns on
assets (ROA), a measure of financial performance commonly
utilized in the firm management literature, is the ratio of net
firm income plus interest payment to total assets.
Many studies that investigate performance are concerned with
distinguishing between the effects of market concentration and
stock efficiency on performance (Berger, 1995). Rao, and Syed
(2007) confirmed negative relationship between financial
market stock and performance. While, Quang and Xin, (2014)
stated that capital structure is significantly inversely correlated
with firms financial performance as a measure of ROA .
2.3.4 Share Price and Dividend per Share (DPS)

Dividend is a widely researched area but still its fathom has to
be explored as numerous questions remain unanswered. The
question of Why do corporations pay dividends? has puzzled
researchers for many years. Despite the extensive research
devoted to solve the dividend puzzle, a complete understanding
of the factors that influence dividend policy and the manner in
which these factors interact is yet to be established. Allen,
Bernardo and Welch (2000) stated that although a number of
theories have been put forward in the literature to explain their
pervasive presence, dividends remain one of the thorniest
puzzles in corporate finance. The dividend decision is taken
after due considerations to number of factors like legal as well
as financial. Garuba (2014), investigated the impact of dividend
per share on common stock returns of some selected
manufacturing firms listed on the Nigerian Stock Exchange
(NSE), using linear regression model. The finding reveals that
dividend-per-share affects the stock returns of the selected
manufacturing firms listed on the NSE. He further explained
that the powers for evaluating the impact of dividend-per-share
on the stock returns of the manufacturing firms listed on the
NSE relies on the appropriate linear and quadratic stock
returns pricing models. Jirapon and Ning (2006) also find
inverse association between dividends payout and
shareholders right, indicating that firms pay higher lower
dividends where shareholders rights are weak strong . Firth
(1996) examines the effect of relatively large dividend changes

on the stock market reactions and earnings forecast revisions of
announcing companies and their rivals. His results show that
dividend increase, produce a significant positive effect on stock
prices while dividend reductions, produce negative effects on
stock prices and forecast revisions of both the announcing
companies and their rivals. While La Porta, Lopez-de-Silanes,
Shleifer and Vishny (2000) explained that firms with weak
shareholders rights need to establish a reputation for not
exploiting shareholders.
3.0. METHODOLOGY
The researchers made use of the cross sectional and
longitudinal research designs this entails the comparison of the
pre-IFRS and post-IFRS performance valuation in order to sort
out the existence of casual effects of one or more independent
variables upon a dependent variable of various companies at a
given point of time. This design is best suitable for this study as
a cross section of Nigerian listed companies will be selected for
the analysis over a period of time.
The population of the study consists of all quoted
company on the floor of the Nigerian stock exchange. The
researchers were able to collect complete data for 29
companies for the periods of interest. The variables obtained
includes earnings per share, return on equity, dividend per
share, return on asset from 2008-2013.
Model 1: Value relevance of IFRS financial statement

MKTPjt = α0 + α1ROEjt + α2EPSjt+ α3DPSjt+ α4ROAjt +ejt- ------------- (1)
Where
MKTPjt = the market price per share (SP) of firm j at time t
α0 = Constant or intercept.
ROEjt = return on equity of firm j at year t
EPSjt = Earnings per shares of firm j at year t
DPSjt=dividend per share of firm j at year t
ROAjt=return on assets of firm j at year t
ɛjt = Error term
4.0. Data Presentation
The descriptive result of the data collected is shown in table1.
Table1: Descriptive result of data collected
From table 1 above, the result shows that POST IFRS

companies share price, DPS, EPS, and ROA on the average is
higher than those of the PRE IFRS (POST IFRS α= ₦ . ;

₦ . ; ₦ . ; & ₦0.35 respectively against PRE-IFRS α
=₦ . ; ₦ . ; ₦ . &₦ . respectively).however the
pre-IFRS return on equity is higher than those of the post IFRS
(i.e. pre-ifrs α=₦ . against ₦ . of post ROE).From the
observations, the researchers decided to carry out other
analysis to further observe the characteristics of the data
generated.
4.1 Data Analysis

The data collected were analyzed using correlation
analysis. This is to ascertain if the pre and post data associate
positively or not.
Table 2: Correlation Analysis of dependent and independent
variables
Source: fieldwork (2015) Eviews result

The key variables from the above table are the post-
share price and pre-share price. The result shows that there is a
positive association between both variables implying that, as
the share price of the pre-IFRS increase, the share price of post-
IFRS also increased across the periods. This association i.e.
represented by r =0.8609 i.e. % of the company s share price
in both pre and post increased. Based on this analysis, we
cannot say any of these periods affected the value relevance of
financial statement.
4.2 Test of Hypothesis

The first hypothesis of this study was tested using the
regression analysis. This is because it enables the study to
ascertain whether IFRS adoption influenced value relevance of
1. Ho: IFRS adoption has not improved value relevance in
H1: IFRS adoption has improved value relevance in
The researcher tested the hypothesis above using the
following model:
PRESP= f pre (ROA, ROE, DPS, EPS)---------------------------------Eq I
POSTSP= f post (ROA, ROE, DPS, EPS)-------------------------------Eq II
PRESP= + ROA + ROE + DPS + EPS
POSTSP= + ROA + ROE + DPS + EPS)
Table 3: OLS Result

Dependent Variable: PRESP (POSTSP)
Source: Fieldwork (2015) Eviews Results

From table 3 above, we discover that pre & post ROA
have negative impact on value relevance and post-IFRS DPS &
EPS have negative impact on value relevance. The implication is
that, the higher these variables the lower the companies share
prices, which means that, the adoption of IFRS has not affected
investors to demand for companies shares which would have
increased the share price. Although these observations are not
significant since the probability of these variables are all above
5 % (i.e. prob for ROA is pre=0.4195 post = (0.873) while post
EPS&DPS are (0.531) & (0.423) respectively. On the other hand

the pre-IFRS EPS, DPS; ROE are all positively impacting on
value relevance (i.e. 0.05, 0.13& 151.60) respectively. This is
because as they increase in value the companies share prices
also increased. By implication, they affect the share prices
positively.
Also from R2 and (Adjusted R2) showed the extent to
which the systematic variation in value relevance is explained
jointly by the predictive variables. Therefore, this study s result
shows that there is 22% to 33% impact (adj r2 =0.22 and r2
=0.33) for the post-IFRS period while the pre-IFRS shows 27%
to 37% impact (adj r2 =0.27 and r2 =0.37). This result has
shown that the financial statement variables explained value
relevance more in the pre-IFRS era more than in the post era.
OLS is based on ordinary linearity assumption. The test
for linearity is shown in the F test and its probability result. The
result on table 3 shows that there is a linear relationship
between the variables which are significant at 5% (F=3.5304;
Prob = 0.04). This result shows the Pre-IFRS era as having a
better explanatory effect on value relevance.
2. H0: There is no significant value relevance variable in the
pre than in the post IFRS financial statement.
H1: There is a significant value relevance variable in the pre
than in the post IFRS financial statement.
We intend to find the variable that has the highest effect on
value relevance on both periods. To achieve this objective, the
regression analysis lays an important role, since it reports the

effect of the independent variables on the dependent variable.
From the result in table3 above, we observe that the variable
ROE has positive impact on the value relevance during both
periods under study (PREROE =151.60; POSTROE =465.13) and
they are both significant at 5% (i.e. 0.0182 (0.004)
respectively). Thus, ROE is the most impacting variable.
However it had the greater impact in the post-IFRS period. In
view of the above, we refuse to reject the H0 while H1 is
rejected, this means that return on equity is significantly
greater upon the adoption of IFRS.
3. H0: There is no difference in the value relevance of the pre and
post IFRS financial statement.
H1: There is a difference in the value relevance of the pre and
post IFRS financial statement.
We conducted a t-test to ascertain whether there is a
difference between the value relevance of the financial
statement of both periods. Table 4 below shows the result.
Table 4 Result of t-test statistic

N α Std.dev Std tcalc Df signific
Error ance
Mean
Posts 29 65.09 128.39 23.841 1.38 28 0.176
p 52 06 5 9
Presp 29 44.78 66.516 12.351
66 4 8
Source: Fieldwork (2015) Eviews Results

From the table, the test result shows that tcalc = 1.389
while the critical value of 2-tailed t = 2.0484. The decision
therefore is that we fail to reject the null hypothesis hence, we
say, there is a difference between the value relevance that
investors attach to pre-IFRS financial statement than that of the
post-IFRS financial statement. Though this finding is not
statistically significant at 5% (i.e. prod = 0.176). Thus, H1 is
accepted while the H0 is rejected, indicating that there is a
difference in the value relevance of the pre and post IFRS
5.0. FINDINGS, CONCLUSION AND RECOMMENDATONS

From the result of the analysis, it was discovered that
IFRS has not improved value relevance in quoted companies in
Nigeria. Table 3 showed that the pre & post ROA have negative
impact on value relevance (i.e. Prob for ROA is Pre=
0.4195,Post=0.873), this finding is not consistent with Garuba
(2014), Jirapon and Ning (2006) .While on the other hand the
pre-IFRS EPS, ROE are all positively impacting on the value
relevance (i.e. 0.05,0.13 & 151.60). Also, the result has shown
that the financial statement variables explained value relevance
in the pre-IFRS era more than the post-IFRS in findings of
Takacs (2012), it was discovered that during IFRS era, firms
tend to exhibit higher values on a number of profitability
measures such as EPS, DPS, ROA this tends to show
disagreement with the researchers findings and this is

explained by a number of factors such as quality of
management, global and local economic conditions, business
performance during the years under review (2008-2013). The
test for linearity is shown in the f-test and its probability
results. The result on table 3 shows that a linearity relationship
exist between the variables and significant at 5 % (F =3.5304;
prob = 0.02) in the pre-IFRS while it is also 5% significant in the
post IFRS (F =2.945; Prob = 0.04). This result showed the pre
era as having a better explanatory effect on value relevance.
Also the result shows that there is a significant value
relevance variable in the pre and post IFRS financial statement.
From the table 3 it was observed that the ROE has positive
impact during both periods under study (PREROE =151.60;
POSTROE =465.13) and they are both significant at 5% (i.e.
0.0182 (0.004) respectively). Thus, ROE is the most impacting
variable but had the greater impact in the post-IFRS periods.
This finding is consistent with liu and Hu (2005).
The study also shows that from t-test statistic result in
table 4 the result showed a lesser tcalc = 1.389 while the critical
value of 2-tailed t = 2.0484. The decision is that we fail to reject
the null hypothesis hence there is a difference between the
value relevance that investors attach to pre-IFRS financial
statement than that of the post-IFRS financial statement though
this finding is not statistically significant at 5% (i.e. prob =
0.176).
5.1 Conclusion
This research work examines the value relevance of IFRS
financial statement in quoted companies in Nigeria. Value
relevance is seen as a proof of the quality of accounting
numbers and as such it can be interpreted as the usefulness of
accounting data for decision making process of investors. The
study has made an immense contribution to the value relevance
literature by examining the value relevance of IFRS financial
statement in quoted companies in Nigeria. The results
demonstrate that, so far, there has been no impact of IFRS
financial statement in quoted companies in Nigeria. Four
variables were used to ascertain their impact on share price in
quoted companies in Nigeria. Among the four variables, return
on equity is the most significant value relevant variable in the
pre and post IFRS financial statement. Therefore, we conclude
that IFRS has not improved value relevance in the country.
5.2 Recommendation
Following the study s findings, these recommendations
are presented which may be of use to National Standard Setters,
preparers of accounting information and investors;
1. Companies should ensure that existing business
reporting model is amended to suit disclosure and
reporting requirement of IFRS.
2. National accounting standard setters and preparers of
accounting information should make effort toward
improving the quality of DPS & EPS information which is

the most widely used performance variable in Nigeria
for investment decision.
3. The accounting standards setters should enhance the
compliance of the financial reporting standard
requirements in order to increase the value relevance of
IFRS financial statements.
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Igbinedion University Journal of Accounting | Vol.

2 August, 2016 | 245

FORENSIC ACCOUNTING AND FRAUD MANAGEMENT:

EHIOGHIREN, Efe Efosa

ATU, Omimi- Ejoor Osaretin Kingsley

Fraudulent practices among Nigerians are major challenges

hypothesis to determine the F-value. The findings are that

Keywords; forensic accounting, Financial/ Economic

1.0. Background to the Study

confronting businesses world-wide. (Onuorah and Appah,

responsibility and function on accountants to equip themselves

dispute resolution and litigation support. Manning (2002)

becoming a normal way of life. (Modugu and Anyaduba 2013)

1. What is the extent of influence that effectiveness of

2.0. Literature Review

invariable rule can be laid down as a general proposition in

2.2.2. Concept of Forensic Accounting

nature to the laws of man. (e refers to forensic scientists as

accounting, medicine, engineering or some other discipline.

2.2.3. Financial crimes

one‟s own. Williams incorporates corruptions to his

of Enron, WorldCom, Tyco, Adelphia, to corporate fraud. $460

in this field (i.e. forensic accountants) investigate and

In financial crimes scenarios, the forensic accountant must

2.4. Challenges of Forensic Accounting Application in

internal auditing system of the organizations in identifying the

prosecutions of criminal and civil claims. Also, the globalization

rule of thumb. Nevertheless, we adopted a sample of five

4.0. Presentation of results and Discussion of findings

H01: Forensic accounting does not significantly influence fraud

(Constant) 3.271 .176 18.625 .000

Forensic .516 .085 1.165 6.094 .000

shows that an effective tool in uncovering diverted fraudulent

Source: The Researchers Using SPSS 21

Decision: Accept the null hypothesis if the F-value is greater

of 0.031, 0,003 and 0.018 respectively. We therefore reject the

5.1. Conclusions and recommendations

fraud, appropriate disciplinary action in accordance with the

Adefila, J.J. (2008). Research Methodology in Behavioural

Adesola, A., . Government s anti-corruption initiative:

Adeniyi, A.A. (2004). Auditing and Investigation, Lagos: El-Toda

Adeniji, A.A., (2004). Auditing and Investigation, Lagos, Nigeria:

AICPA, (2006): Forensic Procedures and Specialists: Useful Tools

Arnoff, N.B & Sue, C.J. . Forensic Accountant s Role and

Brink, V. Z. (1996). Modern Internal Auditing: An Operational

Crumbley, D.L. & Aposolou, N.G. (2005). The Expanding Role of

Fredrichs K. (2007). Extract from Practices Bureau in

Izedomin, F.I & Mgbame, C.O. (2011). Curbing financial frauds

Ethics and Social Responsibility, June 11-13, 2009.

http://www.highbeam.com/doc/IGI- 21276577.html on July

Okunbor, J. A. & Obaretin, O. (2010). Effectiveness of the

component into fraud and forensic Accounting curricula.

Silverstone, H. & Sheetz, M. (2004). Forensic Accounting and

Section B: Questions to Test the Study Hypotheses

Table 1: Forensic Accounting and Financial Fraud Control and

Table 2 Forensic Accounting, Internal Control Quality and

THE IMPACT OF IFRS ACCOUNTING NUMBERS ON VALUE

OBASI, .O. Rosemary