The Impact of Forensic Accounting on Fraud Detection

The study examines the effect of forensic accounting on fraud detection in Nigerian firms.  the aim of this study is to determine the relationship between fraud detection and forensic accounting. To achieve this objective, data was collected from primary sources. The primary data were collected with the help of a well-structured questionnaire of three sections administered to fifteen firms in Benin City Edo State. The collected data were analyzed with descriptive statistics using ordinary least square (OLS) regression and Chi-square. The study reveals that the application of forensic accounting services on firms affects the level of fraudulent activities. Key Words: Forensic accountant, financial frauds, theft of cash/suppression of lodgment, Miscellaneous fraud, falsification of accounts, cashiering fraud, forged chequess with forged signature, computer operator fraud

Expert Witness and the Court System

The objective of this study was to examine the role of a forensic accountant as an expert witness in the law court in Nigeria. The study focused on the extent an expert’s professional experience can assist a lawyer in a case, the expert’s assistance in determining the appropriate proximate cause for damages and bases for determining the authenticity of the expert witness’ report. The study adopted an empirical approach using the questionnaire as its instrument in collecting data. These questionnaires were distributed to forensic accountants, accountants and forensic accounting students. The primary data was the main source of data collection, and the simple random sampling method was adopted. The chi-square method was used to analyze the questionnaires. The paper concluded that an expert witness’ professional experience cannot assist a lawyer in a case, because cases differ in nature. The study also revealed that an expert witness has the ability to determine the appropriate proximate cause for damages and the authenticity of an expert’s report can be determined. The study therefore recommended that experts should be assessed on the type and nature of previous professional experiences in relation to the nature of the current case at hand. Key word; Expert witness, court system and litigation support

Ethics and Role of Accountants

The role of accountants in adhering to ethics was addressed in this paper. Accountants face a number of challenges in the course of carrying out their roles and obligations. Questionnaires were used to elite responses from respondents and the Chi-Square statistic was used to analyse the data collected. It was found that the role of the accountants is dependent on the ethics of the accounting profession. Keywords: Ethics, Code of conduct, Accounting profession

Audit Quality and Auditors Independence in Nigeria: An Empirical Evaluation

Many have argued that auditors’ independence plays a pivotal role in enhancing the quality of the audit in an organization. This is the focus of this study, using Nigerian quoted companies as a reference point. This study empirically evaluates the relationship between audit quality and auditors independence. In pursuance of this, a cross sectional analysis of companies listed on the Nigerian Stock Exchange was carried out. The dependent variable was audit quality that was measured by the fees charged by the audit firms. The independent variables were the audit tenure, board independence, and ownership structure. The data collected for the variables were subjected to the ordinary least square (OLS) regression analysis. The results indicated that as auditors’ independence increase, the quality of the audit also improves and as the independence of the board and the ownership structure increases, the quality of the audit reduces. It is therefore recommended that auditors should strive for independence in other to ensure quality audits. Keywords: audit quality, auditors’ independence, ownership structure

Audit Quality and Auditors Independence in Nigeria: An Empirical Evaluation

Many have argued that auditors’ independence plays a pivotal role in enhancing the quality of the audit in an organization. This is the focus of this study, using Nigerian quoted companies as a reference point. This study empirically evaluates the relationship between audit quality and auditors independence. In pursuance of this, a cross sectional analysis of companies listed on the Nigerian Stock Exchange was carried out. The dependent variable was audit quality that was measured by the fees charged by the audit firms. The independent variables were the audit tenure, board independence, and ownership structure. The data collected for the variables were subjected to the ordinary least square (OLS) regression analysis. The results indicated that as auditors’ independence increase, the quality of the audit also improves and as the independence of the board and the ownership structure increases, the quality of the audit reduces. It is therefore recommended that auditors should strive for independence in other to ensure quality audits. Keywords: audit quality, auditors’ independence, ownership structure

The Impact of Auditor Age on Auditor Independence

The study investigates the reality of auditor age and auditor independence. The aim of this study is to determine the relationship between auditor independence and auditor age. The study used primary data. 60 questionnaires were distributed and 54 questionnaires were retrieved. The data were collected with the help of a well-structured questionnaire of three sections administered to eight firms in Benin City, Edo State. OLS regression was used in analyzing explanatory variables like board size, audit risk, professional judgment, auditor’s age, tenure and auditor’s independence as dependent proxy and the study reveal that auditor independence is significantly influenced by auditor age. Keywords: Auditor independence, audit age, audit risk, professional judgment, integrity, tenur

Internal Control System and Quality Audit Work

The Central Bank of Nigeria (CBN) reported that the backward development in the Nigeria banking sector is attributable to the weaknesses in the internal control systems and poor audit work of the banks. This has clearly pointed out the picture of how fraud has penetrated in the financial strength of Nigerian Banks. In a nut-shell, the damage which this menace, called fraud has done to the banks is innumerable and needs urgent attention. Therefore, the attempt to put an end to this economic degradation, gave rise to the topic of this research study the internal control system and quality audit work in the banking sector in Nigeria with Access Bank PLC as a case study. However, this study verifies the conception that an effective and efficient internal control system has a greater influence on the quality of audit work. Data captured for this study, were analyzed through descriptive and inferential statistical methods. The descriptive analysis involves the use of tabulation and percentages. While the inferential statistical method involved the use of the chi-square. This study reveals that internal control system has a great influence on the operations of the bank and consequently on their quality audit work. Base on the above point, it was recommended that a good internal control system should be employed by the management of every organization. Keywords: Internal control, fraud, audit quality, banking secto

Finance Companies, Central Bank of Nigeria and Economic Development

This paper is an empirical study of Central Bank of Nigeria (CBN) regulatory activities , finance house activities and economic development, within the period 1992-2010, using gross domestic product GDP(dependent) as a  measure of economic  development, while Activities of Finance houses proxy by domestic credit and total assets, CBN activities proxy by the shareholders fund and minimum paid up capital, estimation of regression models and subsequent analysis of results using micro fit 4.1 econometric, statistical analytical  tool. The findings indicate that significant relationships existed between Finance house activities and economic development, and CBN regulatory activities in finance house has no significant relationship. Therefore, this calls for policy options that would favor the encouragement of existing finance houses and licensing of new ones to adequately carter for the needs of the overall economy.. Keywords: Economic development, Finance houses/companies, Money market, CBN, and GDP.

Ethical Challenges and Financial Performance in the Nigerian Banking Sector

This study examines ethical challenges and financial performance in the Nigerian banking sector. In the presence of the acclaimed sound corporate governance by most banks which ought to promote good ethical practices, bank’s customers continue to express dissatisfactory banking services rendered, mostly observed in areas where unwarranted deductions (debits) are made to customer’s account without detailed explanations. Also, the degree to which most individual and corporate customers change their banking services due to loss of confidence, and the level of insider related credit granting have called for concern to examine some practices in this industry. Further, the dearth of research work in this particular area of interest has motivated this study. Percentage analysis, Descriptive statistics and Spearman ranked order of correlation (rho) using Statistical package for social sciences (SPSS 21.0) were used to analyze the responses from the various respondents. Findings from the empirical result indicates that insider related credits exhibit a significant positive relationship with financial performance in the Nigerian banking sector while unauthorized tampering with customers’ accounts revealed unexpected insignificant negative relationship with financial performance. It is therefore recommended that the Central Bank of Nigeria should instill tougher disciplinary measures against erring CEOs as this could go a long way to further mitigate the rising tide of unethical practices in the Nigerian banking sector. Keywords: Unethical practices, Insider credits, financial performance and unauthorized access to customers’ accounts

Litigation Services and Fraud Cases: Perspective of the Forensic Accountant

The study examines the role and effect of the forensic accountant’s litigation services in the adjudication of fraud cases. Data was gathered mainly by applying a structured questionnaire to a target sample for respondence, as well as interviewing respondents and noting their responses. The target population included legal practitioners and accountants, both of which were randomly selected; 20 respondents each, based on our set criteria of knowledge of subject matter. Descriptive of the responses was first gotten, after which a reliability test was carried out on our instrument of measurement for which we got 0.78 using Cronbach’s Alpha, confirming the internal consistency of our instrument. We went further to test our hypothesis using a one sample T- Test, which revealed that the forensic accountant’s litigation services does affect the adjudication of fraud cases. The study therefore recommends especially for developing countries like Nigeria, to fully standardize, structure and improve the use of forensic accountants in the adjudication fraud cases as we believe this will increase the chances of getting convictions. Keywords: Forensic Accounting, Fraud Cases, Litigation, Prosecution, Expert witness, Special Masters, Expert consultan