THE RELEVANCE OF FORENSIC ACCOUNTING TO FRAUD DETECTION AND PREVENTION IN PRIVATE AND PUBLIC SECTORS

CASE STUDY OF NIGERIAN BOTTLING COMPANY
CHAPTER ONE
 INTRODUCTION  
1.1       Background of the Study
            This paper explores the relevance of forensic accounting in the detection and prevention of fraud in our private and public sectors respectively due to the prevalent increase in the rate of misappropriation and embezzlement of funds using Nigerian private and public sectors as a study. The financial irregularities is a severe problem of concern globally. It is common that almost every individual cannot wash his or her hands clean of it, starting from the public sector to the private sectors. Accounting as a social science plays significant roles in our society and serves as a legitimating device for the market economic system and also a form of social language and certainly a business language.

            However, accounting figures are heavily exposed to fraud due to their influence on numerous crucial decision that affect various key social actors with far reaching implications. For instance, accounting figures are sources of rewards for management, a basis for the assessment of firm performance and grouping in the sense of profitable and none profitable firms and investors decisions. These numerous needs and interest makes accounting figures to be extremely susceptible to fraud. Fraud in accounting is fraudulent financial reporting and misappropriation of firms resources and  this has been occurring in our society thereby making great emphasis on how fraud will be detected and prevented. Though the auditors responsibility has been increased to consider the risks of fraud while conducting audit of financial statements; thereby calling for stronger technique and skills on those who perform these audits. Hence the primary responsibility of an auditor is to verify whether the financial statements show a true and fair view of the business white their secondary responsibility is the prevention and detection of errors and fraud.
            The third party emphasized that an auditor must be in a position to detect all kinds of fraud, but the auditors are not so persuaded as they believe that it is not their primary duty to detect fraud. So there is a gap between auditors and third, parties (sale hi and Azary, 2009a) and this has brought about the introduction of  somebody who has higher skill to do the secondary responsibility of an auditor called a “forensic accountant”.
            Enyi (2009) submits that all normal statutory audits should contain some elements of forensic enquiry as the evidence of fraudulent activities can be easily discovered if a thorough  evaluation of the adequacy and compliance of the internal control mechanism is made may not be achieved by an auditor without some understanding society of forensic accounting methods. Events of the recent years in our society that involves the public sectors and private sectors have contributed to the growing demand for forensic accounting to help detect and prevent fraud accountant has been ascribed to the fact that the audit system in an organization had failed to detect certain errors in the managerial system. The following have been figured as being responsible for the growth of forensic accounting which includes:-
Ø  Failure of internal audit and audit committee to unearth hidden aspects of corporate fraud.
Ø  The apparent lack of independence of internal auditors
Ø  The often compromised method of appointing statutory auditors
Therefore, forensic accountants were introduced in order to prevent, detect and respond to harm caused by fraud that an auditor could not detect or prevent. A forensic accountant has the sole aim of unveiling fraudulent activities within and outside the organization. In general terms, forensic accounting involves reporting where fraud is established and the report is considered as evidence in the court of law. The engagement of forensic accounting techniques are usually geared towards finding where money went how it got there and who was responsible.
In respect to the above submissions and endemic nature of fraud in Nigeria and the necessity of specialized skills to unveil such frauds, it becomes imperative to bring in the services of forensic accounting techniques into our society to help solve the problem of fraud activities we experience in our society.
A forensic accountants have been described as experienced auditors accountants and investigators of legal and financial documents that are hired to look into possible suspicious of fraudulent activity within a company; or are hired by a company who may just want to prevent fraudulent activities from occurring. They also provide services in areas such as accounting, anti trust, damages, analysis, valuation and general consulting. Forensic accountants have also been used in bankruptcy, insurance claims personal injury claims, fraudulent claims, construction, royalty audits and tracking terrorism by investigating financial records. Forensic accounting is an amalgamation of forensic science and accounting.
Therefore, there is every need to inculcate the services of a forensic accountant in our private and public sectors to fill in the gap that an auditor could not cover hence bringing up the trust of investors and general public in our organizations to be fresh again and strong as it use to be that is the observation of the researcher after being motivated to carryout a research on the relevance of forensic accounting to fraud detection and prevention in private and public sectors.

1.2       Statement of the Problem 
            The increase in the rate of fraud –public and private fund embezzlement has caused a serious concern to the investors, general public and owners of the business. Hence, the investors and general public have been disappointed in the failure of the responsibilities of auditors in their work.
            Fraud has been discussed in two different ways viz fraudulent financial reporting and misappropriation of assets refers to deliberate and calculated activities and attempts to misrepresent transactions in the financial statement in order to derive or take undue advantage. On the other hand misappropriation of assets refers to deliberate and calculated activities to take firms resources without authorization, this includes stealing. However all these fraudulent financial reporting and misappropriate of rim resources exist due to their influence on numerous crucial decisions that affects various key social actors with a far reaching implication for example, accounting figures are sources of rewards for management; a basis for the assessment of firm performance and grouping in the sense of profitable and non profitable firm. These numerous needs and interest makes accounting figures to be extremely susceptible to fraud.
            Therefore most people now are of the view that the emergence  and inclusion of forensic accounting techniques to fraud detection and prevention in public and private sectors in Nigeria is needed to arm the accounting profession to deal with the problem of unearthing ingenious fraud schemes arising from audit’s failure to detect and prevent it. Though the study of forensic accounting in Nigeria is very few in our universities irrespective of the numerous universities we have in Nigeria thereby not having a good number of forensic accountants to curb the excessive fraud activities going on in our public and private sectors.
            This study, therefore is aimed at ascertaining the impact the available forensic accountants will create on detecting and preventing fraud using the forensic accounting techniques and thus its contribution in bridging the audit expectation gap. Below are some of the statement of problem that was looked into
1.                  To what degree do people believe in the opinion of auditors concerning their report on an audited financial statements
2.                  To what extent has the negligence of auditors to their job caused financial misappropriation in our sectors.
3.                  In what way has the 50% unindependent quality of an auditor affected their opinion to the public concerning the financial statement of our sectors.

1.3       Objectives of the Study   
            The overall objective of this study is to find out the perception of accountant techniques in fraud detection and prevention can enhance the chances of fraud discovery and thus help in closing the audit expectation gap between the auditor responsibilities and publics expectation. For this study we looked into the following objectives which is as follows:-
(i)                To ascertain the extent to which forensic a accounting has helped in detecting and preventing fraud  in public and private sectors in Nigeria.
(ii)             To ascertain if the forensic accountant should be analytically minded and inquisitive.
(iii)           To find out if there is need for the services of forensic accountant to fraud detection and prevention in our public and private sectors.
(iv)           To ascertain if the services of the forensic accountants are needed in Nigeria.
(v)              To find out the view of staffs of the sectors as to whether on a cost benefit basis, the introduction of some forensic accounting techniques in an audit is capable of stemming the tide of financial fraud and bridge the audit expectation gap.

1.4       Research Questions     
            The following research questions were formulated for the purpose of this study. They includes:-
(i)                In what ways has the forensic accounting helped in detecting and preventing fraud in Emanite limited  and Nigerian bottling company Enugu
(ii)             Should a forensic accountant be analytically minded and inquisitive.
(iii)           What are the needs for forensic accountant’s services in fraud detection and prevention in organization.
(iv)           Why do the services of forensic accountant been needed in Emanite Ltd Emene Enugu State and Nigerian bottling company Enugu
(v)              What are the views of staff of Emenite Ltd Emene Enugu and Nigerian bottling company as to whether the cost benefit basis, the introduction of some forensic accounting techniques in an audit is capable of stemming the tide of financial fraud and thus bridge the audit expectation gap.

1.5       Hypothesis                                                                    
(1)       H0-      There is no relationship between forensic accounting and fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company Enugu.
H1-      There is no relationship between forensic accountant and analytical mind and inquisitiveness in fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company Enugu.
(2)       H0-      There is a relationship between forensic accounting and analytical mind and inquisitiveness in fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company Enugu.
            H1- There is a relationship between forensic accounting and analytical mind and inquisitiveness in fraud detection and prevention in Emenite limited Enugu and Nigerian bottling company Enugu.
(3)       H0 –There is no relationship between forensic accountant and there services in fraud detection and prevention in Emenite Ltd Enugu and Nigerian bottling company.
            H1- There is relationship between forensic accountant and there services in fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company.
(4)       H0- There is no relationship between forensic accountant and the need for there services in Emenite Limited Emene Enugu and Nigeria bottling company Enugu.
H1-      There is relationship between forensic accountant and the need for there services in Emenite Limited Emene Enugu and Nigeria bottling company Enugu.
(5)       H0-      There is no relationship between accounting and the negative view about the cost benefit basis, the introduction of some forensic accounting techniques in an audit which is not capable of stemming the tide of financial fraud and thus not cover the audit expectation gap the organization workers have in mind.
            H1-      There is relationship between accounting and the negative view about the cost benefit basis, the introduction of some forensic accounting techniques in an audit which is not capable of stemming the tide of financial fraud and thus not cover the audit expectation gap the organization workers have in mind.

1.6       Significance of the Study
The research under took this research on the topic “the relevance of forensic accounting to fraud detection and prevention in private and public sectors- Nigerian bottling company Plc and Emene Enugu as a case study” due to the increase in the financial misappropriation and embezzlement in our private and public sectors and the failure of auditors to accurately represent the public, shareholders, investors in the duty they (auditors) owe them because of limited or no independence right which they have now n our country in order to make quick money, there is need to introduce someone who is more sincere and can go beyond investigating only paper work, someone who can do police work, lawyer job and state security service (SSS) job. That is going as far as investigating how the misappropriation started, people that are involved, reasons for their involvement someone who has initiative mind on private investigation and accounting, that can recognize financial fraud, who can look beyond the financial numbers to find out what is not right and scrutinize on that.
The researcher discovered that the shareholders, investors, general public, company and the government will benefit in the inclusion of forensic accountants to the diction and prevention of fraud in our private and public sectors. Since their investigation goes beyond the investigation of an ordinary auditor. Again, the researcher discovered that if forensic accountants will be given proper and adequate support by the beneficiates named above to do their job in dependently with full cooperation without interference. From the perpetrators of the financial misappropriation, the sky will be their starting point in detecting and preventing fraud in our private and public sectors and also help reduce the level of embezzlement and financial misappropriate we experience in our organizations.

1.7       Scope and Limitations of the Study 
            For the purpose of this study, I focused on a selected private sector and a selected public sector which is Emenite Ltd, Emene Enugu and Nigerian bottling company Plc in Enugu respectively. The two sectors (company) that was selected out of the numerous private and public sectors in Nigeria and has their accountants, auditors and senior staffs as the main target.
            During the research, the research had constraints on the area of insufficient fund, inadequate time and space, resistance non challant attitude of most respondents and difficulty in getting enough materials for his writing to carryout further investigation of the research topic.

1.8       Definition of Terms
Forensic –                  “This means suitable for use in a court of law; “pertaining to court”; being accepted as a standard in legal cases”  
Accounting –            This is the process of recording, classifying, summarizing, analyzing and interpreting financial transactions and  communicating the results thereof to interested users
Auditing –                 This is an independent examination of and expression of opinion on, the financial statements of an enterprise by an appointed auditor in pursuance of that appointment and in compliance with any relevant statutory obligation. 
Forensic accounting -          This is a type of accounting that provides accounting analysis that is suitable for the court and which will form the basis for discussion, debate and ultimately dispute resolution. It is actually the integration of accounting, auditing and investigative skills to assist in legal matters.     
Investigate –              This is to discover and examine all the facts about something, somebody’s character, background, political view, fraud, information etc. using police or lawyer method of research.     
Litigation -                This is a process of bringing or defending a claim before a law court
Misappropriation     -This is using somebody’s or some people’s money embezzlement placed in a person’s care without authorization by the owner for one’s benefit.
Private sector -          This is simply a business firm that issues shares to the general public. It is a business part of economy or industry managed and controlled by the state.
Fraud -                       This is the action or an instance of deceiving somebody in order to make money or obtain goods illegally.
Audit expectation gap-        This is described as the gap between the auditors actual standard of performance and the various public expectations of auditors performance.
Fraudulent financial Reporting -   This refers to deliberate and calculated activities and attempts to misrepresent transactions in the financial statement in order to derive or take undue advantage.


REFERENCING
Anwar, N. (2008). “Forensic Accounting: A Dynamic tool for Combating    Corruption”. The Financial Express, I –I Dhaka. 
Bologna, G. J., & Lindquist, R. J. (1987). Fraud Auditing and Forensic         Accounting New Jersey: New Tools and Techniques. New Jersey:          Wiley Publishers (Chpt 3). 
Buckhoff, & Schrader, R. (2000). “The Teaching of Forensic Accounting    in the United States”. Journal of Forensic Accounting.1(1),135 –           146.
Chariri, A. (2007). “The Relevance of Forensic Accounting in Detecting     Financial Frauds”. Journal Orgamisasi dan managem, 3 (2), 81-88    
Crubley, D. (2003). “What is Forensic Accounting”. (online) Available       www.edwardspub.com. 
Emma, I. O., & Okoro, S. C. (2001). “Forensic Accounting and Audit            Expectation Gap – the Perception of Accounting Academics”.   (online) available: www.ssrn.com.
Kasum, A. S. (2009). “The Relevance of Forensic Accounting to       Financial Crimes in Private and Public Sectors of Third World       Economics: A study from Nigeria”. Proceedings of the 1st             International Conference on Government Fraud Ethics and Social     Responsibility. Illorin, Nigeria pp.11-13.
Kleyman, T. (2006). “A course in Forensic Accounting”. (unpublished        honors College Theses, 40.) (online) Available: www.digitalcommons.pace.edu/honorscollege_theses/40. 
    
       

           
CHAPTER TWO

LITERATURE REVIEW
2.1       Origin OF Forensic Accounting
            Forensic accounting is not as new as many people think, it has existed for many fears with the growing complexity of business environment and the growing number of fraud in our organization. In the beginning auditors took responsibility for detection of fraud, and forensic accounting techniques were used in their audit activities. Beginning from early 1940s, auditors and the accounting profession began to redefine the duties of an audit through the auditors are primarily known for expressing their opinion as to whether the financial statements of an organization showed a true and fair view of the entity’s transaction. With the strident calls and pressures on modern audit to once again assume responsibility for fraud gave birth to forensic accounting. People believe that audit and forensic accounting will soon reunite again. This forensic accounting techniques is believed to detect and prevent fraud which will help in bridging the audit gap as it relates to inability of an audit to detect fraud.
            Joshi (2003) ascribed the origination of forensic accounting to Kutilya, the first economist to openly recognize the need for the forensic accountant whom he (Joshi) said, mentioned 40 ways of embezzlement centuries ago. He, however stated that the term forensic accounting was coined by Peloubet in 1946. Crumbley (2001) wrote on same when he stated that a form of forensic accounting can be traced back to an 1817 court decision. He stated also that a “young Scottish accounting issued a circular advertising his expertise in arbitration support in 1824” but that Peloubet was probably the first to publish the phrase forensic accounting.  Investigation of fraud and corruption is confirmed thus, not to be new, even in Nigeria. It is only gaining prominence because of the growing wave of crime under the seemingly new nomenclature in the past few years (Coenon 2005).
            In some western countries in the 1980s particularly in the USA, forensic accounting was introduced. This profession identifies a field composed of accounting, auditing and investigative skills (Bozkurt 2000). In this concept, forensic accountants are believed to be providing an account analysis to determine the facts necessary to resolve a dispute before it is brought before a court or the Lawsuit process takes its course. The term forensic accountants are generally used for certified Public Accountants (CPAs) who perform the activities of analyzing, examining, investigating, auditing and questioning that follows an organized way in order to find the truth or reach an expert opinion by starting with the truth. Forensic accounting and Litigation support involves the services provided by CPAs on legal issues (Crumbely 1995).
            Maurice E. Peloubet is his 1946 essay – “forensic Accounting: its place in Today’s Economy”. By the late 1940s, forensic accounting had proven its worth during World War II; however formalized procedures were in place until the 1980s when major academic studies in the field were published (Rasey 2009).
            Forensic accounting is the specially area of the accountancy profession which describes engagements that results from actual or anticipated disputes or Litigation. They are expected to trace money laundering and identify theft activities as well as evasion. Insurance company’s hire forensic accountants to detect insurance fraud such as arson and law offices employ forensic accountants to identify marital assets in divorce cases (Weygandt et al. 2008).
2.2       Forensic Accounting Definition
            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 also defined forensic as suitable for use in a court of law (Crumbley et al 2005).
He refers to forensic scientists as examiners and interpreters of evidence and facts in legal cases that also offers 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) defined forensic accounting as the application of specialized knowledge and specific skill to stumble up on the evidence of economic transactions. Zysman (2001) put 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), stated that forensic accounting involves the application of accounting concepts and techniques to legal problem. It demands reporting, where the accountability of the fraud is established and the report is considered as evidence in the court of law or in the administrative proceeding (Joshi). It provides an accounting analysis that is suitable to the court which will form the basis of discussion, debate and ultimately dispute resolution (Zysman, 2001). These means that forensic accounting is a field of specialization that has to do with provision of information that are meant to be used as evidence especially for legal purposes. The person practicing in this field investigate and document financial fraud and white-collar crime such as embezzlement investigate allegations of fraud, estimates losses damages and assets and analysis complex financial transaction. They provide those services for corporation, attorneys criminal investigators and the government (Coenen, 2005).
            In conclusion, the researcher came to the understanding that forensic accounting is accounting that provides accounting analysis that is suitable for the court and which will form the basis for discussion, debate and ultimately dispute resolution. It is actually the integration of accounting, auditing and investigative skills to assist in legal matters.

2.3       Objectives of Forensic Accounting
            a forensic accountant is often retained to analyze interpret, summaries and present complex financial and business related issues in a manner which is both understandable and properly supported. A forensic accountant can be engaged in public sector practice. Their main objective is to detect and prevent fraud that auditor could not do. Their  engagement is geared towards findings where money went, how it got there and whom was responsible. They are trained to look beyond the numbers and deal with business reality of the situation (Zysman 2001). Forensic accountants uses their professional accounting skills, investigative skills and an investigative mindset to resolve disputes or anticipated dispute where there are risks, concerns or allegations of fraud or other illegal or unethical conduct. Finally, their objective in the area or place they are employed is to identify substance over form when dealing with an issue.

2.4       Assignment a Forensic Accountant Performs and his            Engagement
            A forensic accountant as other professionals has a definite assignment he performs and areas he is been-engaged to exercise his duties.
            Coenen (2005) identifies the following as areas where a forensic accountant is engaged.
(i)                Investigating corporate fraud
(ii)             Litigation services
(iii)           Business valuation
(iv)           Computer forensic
However, Zysman (20010 in a more elaborate form captured the assignment performed by forensic accountant as including.
(i)                Criminal investigation –Forensic accountant do this type of investigation on behalf of the police with the aim of presenting evidence in a professional and concise manner
(ii)             Shareholders and partnership disputes- These assignments involves analysis of numerous year financial record for valuation and qualification of the issue in dispute.
(iii)           Personal injury claims/motor vehicle accidents –A forensic accountant is often asked to quantity the economic losses resulting from a motor vehicle accident. He needs to be familiar with the legislation in place which pertains to motor vehicle accidents. Also in the case of medical malpractice and wrongful dismissal, it often involves similar issues in calculating the resulting economic damage.
(iv)           Business interruption/other types of insurance claims- Insurance policies differ significantly as to their terms and conditions. These assignments involve a detailed review of the policy to investigate. Coverage issues and the appropriate method of calculate the loss. He is often asked to assist from either an insured or insurers perspective in the settlement of a case. Example of this assignment includes property losses and employee dishonestly claims business interruptions.
(v)              Business/Employee fraud investigations- These type of assignment involves fraud tracing, asset identification and recovery, forensic intelligence gathering and due diligence reviews. By employee fraud investigations it involves procedures to determine the existence nature and extent of fraud and may concern the identification of a perpetrator. These investigations often entail interviews of personnel who had access to the funds and a detailed review of the documentary evidence.
(vi)           Matrimonial Disputes- This also involves the tracing, locating and evaluation of assets
(vii)         Business Economic Losses- This assignment involves setting contract dispute, construction claims, expropriation product liability claim and trade mark issues.
(viii)      Professional Negligence- This to ascertain the breach and quantity the loss involved.
(ix)           Mediation and arbitration

2.5 Typical Approach to Forensic Accounting Assignment Zysman (2005)
Outlined the following steps in executing forensic accounting assignment.
(i)                Meet with the client to obtain an understanding of the important facts, players and issues at hand.
(ii)             Perform a conflict check as soon as the relevant parties are established.
(iii)           Perform an initial investigation to allow subsequent planning to be based upon a more complete understanding of the issues.
(iv)           Develop an action plan that take into account the knowledge gained by meeting with the client and carrying out the initial investigation and which will set out the objectives to be achieved and the methodology to be utilized to accomplish them.
(v)              Obtain the relevant evidence- this may involve locating documents economic information, asset, a person or company, another expert or proof of the occurrence of an event.
(vi)           Perform the analysis –this may involve calculating economic damages, summonsing a large number of transactions; performing a trace of assets; performing present value calculations utilizing appropriate discount rates; performing a regression or sensitivity analysis; utilizing charts and graphics to explain the analysis; utilizing a computerized application such as spread sheet, data base or computer model.
(vii)         Prepare the report- often a report will be prepared which may include sections on the nature of the assignment, scope of the investigation, approach utilized, limitations of scope and findings and or opinions. The report will include schedules and graphics necessary to properly support the explanation. Joshi (20030 stated that the job demands reporting, where the accountability of the fraud is established and the report is considered as evidence in the court of law or in the administrative proceedings.

2.6       Characteristics of a Forensic Accountant in Fraud Defection and Prevention   
            For a forensic accountant to perform his duty fully well, he must posses some qualities or features, which includes:-
(i)                Curiosity – A strong desire to know or learn something
(ii)             Persistence – He must have the ability of doing his work not minding the difficulties he might encounter during his work. Refusing to give up in any negative situation he might meet.
(iii)           Creativity – He must be a person who knows how to apply his skills and imaginative mind to work. Creating something out of nothing.
(iv)           Discretion –A forensic accountant must be careful in all his deeds and able to pass a right judgment after his investigation. He does the right thing and say the truth.
(v)              Confidence – A forensic accountant must be one whom people have confidence and trust on. They must believed and relied on in all ramification and should show that in the discharge of their (forensic accountant) duties.
(vi)           Analytical –He should be able to study or examine things in details. And also give his judgment in a detailed form. That is, he must be detailed oriented as well.
(vii)         Ethical –He must be somebody who has moral principals that is morally correct and has rules that guides his actions.
(viii)      Initiative- He must have the power of understanding situation and people’s feelings immediately without the need for concision reasoning or study.
(ix)           Evaluative –He must have the capability of forming an idea to assess something or value of that something
(x)              Inquisitive –A forensic accountant must be someone who ask questions a lot about what he is investigating on. Other qualities includes
(xi)           Sound professional judgment
(xii)         Insightful
(xiii)      Function well under pressure
(xiv)       Be skeptic
(xv)         Be responsive
(xvi)       Generates new ideas and scenarios
(xvii)    Be a team player
(xviii)  Makes people feel at ease
(xix)       Has the ability of organizing

Finally, a forensic accountant must be open to consider all alternatives, scrutinize the fine details and at the same time see the big picture. In addition, a forensic account must be able to listen effectively and communicate clearly and concisely any type of fraud he detects or can be prevented.

2.7       Who Retains a Forensic Accountant
            The services of a forensic accountant is need by many, both the private sectors and public. Below are groups that retains a forensic accountant for a proper auditing, investigating, detecting and prevention of fraud.
(i)                Lawyers
(ii)             Police forces
(iii)           Insurance companies
(iv)           Government regulatory bodies and agencies
(v)              Banks
(vi)           Courts
(vii)         Business communities etc.   

2.8       How Can a Forensic Accountant be of Assistance  
            A forensic accountant can be of assistance to the people or group that retains him in two major ways which includes:-
(i)        Litigation support –By this support we mean assisting to obtain documentation necessary to support or refute a claim. 
v Review of relevant documentation to form an initial assessment of case and identify area of loss.
v Assistance with examination for discovery including the formulation of questions to be asked regarding the financial evidence.
v Attendance at the examination for discovery to review the testimony, assist with understanding the financial issues and to formulate additional questions to be asked.
v Review of the opposing experts damages report and reporting on both the strengths and weaknesses of the positions taken.
v Assistance in the areas of settlement discussion and negotiations.
v Attendance at trial to near the testimony of the opposing experts and to provide assistance with cross examination.

(ii)       Investigative support:-
v Reviewing of the factual situation and provision of suggestions regarding possible courses of action.
v Assisting in protecting and recovering of assets
v Co-ordination of other experts like
(a)              Private investigations
(b)              Public investigators
(c)              Forensic document examiners
(d)              Consulting engineers
v Assisting in the recovery of assets by way of civil action or criminal prosecution.  

2.9       Scopes of Forensic Accounting  
            Forensic accounting like other professions covers so many afferent areas of disciplines which includes as follows
(i)                Public sector  accounting
(ii)             Financial accounting
(iii)           Investigative accounting
(iv)           Auditing
(v)              Legal matters
(vi)           Quantitative methods
(vii)         Medicine
(viii)      Engineering
(ix)           Banks
(x)              Telecommunication
(xi)           Criminal matters
(xii)         Financial crime offences
(xiii)      Insurance
(xiv)       Corporate bodies
(xv)         Research

2.10    Fundamental Forensic Knowledge 
            A forensic accountant must be knowledgeable in so many area like
(i)        Professional responsibilities and practice management
(ii)       Laws, courts and dispute resolution
(iii)     Planning and preparation
(iv)      Discovery
(v)       Reporting, experts and testimony
(vi)      Information gathering and preservation of documents, electronic data, interrogations, interviews.  

2.11    Relevance of a Forensic Accountant in Detecting and Preventing Fraud
            Adefila, Kasum and Olaniyi (2006), assertion is that fraud and corrupt practices is globally endemic. However, the rate at which public and private office holders in developing economics, Nigeria inclusive perpetrate financial malpractice is dangerously alarming. These people embezzles public fund not minding whatever consequences their activities may have on the citizens of the country and users of the financial statement report. On the other hand the auditors that are suppose to defect and prevent fraud could not do that fully because they (auditors) believe that fraud detection and prevention is their secondary assignment thereby not paying full attention to it. This attitude of there’s has created a very big expectation gap which is a gap between the auditors actual standard of performance and the various public expectations of auditors performance. Hence a call for a robust and bigger techniques to detect and prevent fraud arised, they called them forensic accountant.
            Forensic accountants are somehow connected to auditors but they go beyond the practice of auditors, doing things auditors could not do. Conventional audit techniques cannot be guaranteed to detect fraud all the time because of the limitations inherent in the modern audit process, but the introduction of forensic accountants has bridged the audit expectation gap. The forensic accountant is a blood hound of book keeping as opposed to a watch dog associated with an auditor-they sniff out fraud and criminal transactions in our public and private sectors financial records. They hound for the conclusive evidences. External auditors find out the deliberate misstatements only but the forensic accountants take a more proactive, skeptical approach to examining the books of accounting. They make no assumptions of management integrity, show less concerns for arithmetical accuracy and have nothing to do with assurance standards but are kin in exposing fraud (Anwar, 2008) therefore, the relevance of a forensic accountant to fraud detection and prevention in the public sectors and private sectors is that they help identify and investigates suspicious or fraudulent claims and provides expert witness services. A forensic accountant also handles financial and forensic accounting issues. Its important again is the conducts of fraud investigation and analysis. Also, a forensic accountant identifies existing and emerging fraud risk. The relevance of a forensic accountant to fraud detection and prevention in the public sectors and private sectors in Nigeria cannot be underemphasized.


2.12    Merits of Forensic Accounting   
            Accounting, as such, is a wide subject which includes many areas of specialization. One of them is forensic accounting. Accountants specializing in this field use accounting skills to investigate and analyze financial information. They generate reports, stating their findings, which are acceptable in the court of law for legal use this field requires thorough knowledge about business, law and finance, along with accounting skills. With this kind of knowledge, financial accountants are able to identify fraud or embezzlement in a business organization. Forensic accounting is also useful to assess losses, in cases where financial compensation is asked for. In cases of divorce, forensic accounting comes into the picture for establishing adequate compensation required for spouse and child support. The field of forensic accounting is useful in many cases involving finance. However, it has its own set of pros and cons.

Below are the advantages of forensic accounting:-
v   Fraud identification and prevention – fraud is quite common in big organizations where the number of daily financial transactions is huge. In such an environment, an employee can easily undertake fraudulent activities without being caught. Forensic accounting helps in analyzing whether the company’s accounting polices are followed or not, and whether all the transactions are clearly stated in the books of accounts. Any deviation observed in the books of accounts can help in identifying fraud, and necessary measures can be taken to prevent it in the future.
v   Making sound investment decision- As forensic accounting helps in analyzing the financial standing and weaknesses of a business, it provides a path for investors to make thoughtful investment decisions. A company dealing with fraud is definitely not a good option for investment. Therefore, the reports of forensic accountants act as a guide for potential investors of a company. Many organizations also apply for loans from various financial institutions. By performing a forensic accounting analysis, such institutions can come to a decision on whether they would like to find a company or not.
v   Formulation of economic policies- Various cases of fraud that become evident after forensic analysis act as a reference for the government to formulate improved economic polices that would be able to curb such fraudulent activities in the future. By doing so, the government can strengthen the economy and prevent such illegal activities in the country.
v   Rewarding career opportunity- As a career, forensic accounting is extremely rewarding, as it not only involves regular accounting activities, but also involves identification, analysis and reporting of the findings during an audit. The acceptance of reports generated by a forensic accountant by the court of law, gives them an upper hand as compared to other accountants.
v   Forensic accounting provides expert witness in a competent court of jurisdiction on matters of high technical relevance.
v   Forensic accounting is also helpful in personal injury claims and motor vehicle accidents in quantifying the economic loses resulting from a motor vehicle accidents and personal injury sustained in the factories.
v   Forensic accounting is useful in carrying out inquiry in such a manner that he outcome will have application in court of law.
v   It serves as basis in dispute resolution in legal matters
v   It provides accounting and auditing analysis
v   Forensic accounting is used in quantifying economic damages and calculation of economic loss resulting from breach of contract it is sued to provide documentary evidence and support in financial crime litigation.
v   It is used to reduce instance of business fraud and abuses.

2.13 Demerits of Forensic Accounting 
v    Confidentially issue – since the scrutiny of a company’s financial records is done by an external forensic accountant, the chances of leakage of confidential matter is always there. It is true that their code of ethics clearly mentions that forensic accountants and other members involved in the scrutiny must not engage in disclosing confidential data to outsiders, but the possibility of disclosure cannot be nullified.
v    It involves a wide range of investigations since the investigator goes beyond the financial misappropriation only but how it happened and people behind it.
v    It requires specialized knowledge in accounting and auditing the services cannot be issued by any body who does who does not possess the qualities of an accountant or auditor.
v    It is only limited to criminal matters and financial crime offences.
v    It involves too many approaches in resolving disputes in the court of law.
v    Forensic accounting requires special skills such as investigation accounting and auditing skills.
v    It is not economical to conduct forensic accounting since it involves wide range investigation. It is cost intensive. To mention but a few above.


2.14    Difference Between a Forensic Accountant and an Auditor
            To most  people the term forensic accountant and an auditor are more likely used interchangeable or viewed as one without knowing that one is an extension of another. Forensic accountant is extension of an auditor, reason being that an auditor only verifies whether the financial statements show a true and fair view of the business while a forensic accountant investigates the truth of some records, or how they got the way they are –forensic accountant are mainly known for detecting and preventing fraud.
            Furthermore, below are the detailed differences between a forensic accountant and an auditor
v Timing –forensic accounting are only conducted with sufficient predication while an auditor is conducted on a regular basis.
v Scope –forensic accounting are conducted to resolve specific allegations while audits are general examination of financial data.
v Objective –forensic accounting is to determine whether fraud has/is occurring and to determine who is responsible while audits are conducted to express an opinion of the financial data.
v Relationship –forensic accounting is adversarial as the forensic accountant efforts are to affix blame while audit by nature is non adversarial.
v Methodology-forensic accounting uses techniques to collect evidence, review outside data (ie public records) and interviewing while audits examine financial data.
v Presumption –forensic accounting approach the resolution of a fraud to establish sufficient proof to support or refute an allegation of fraud while auditors are required to approach. The audit with professional skepticism.
v Forensic accountants need to possess skills and expertise in two fields namely private investigation and accounting but no such sill is needed in auditing.
v Forensic accounting is expected to recognize financial fraud and scrutinize on that because of their quality of investigative  intuition  while an auditor only reviews transactions which needs no special intuition before it is done.
v Forensic accounting covers money laundering, property damage, business purchase, tax avoidance, loss profits due to misuse and illegal activities and divorce asset evaluation while auditors centres on error detection, rectifying those erros and preventing such errors in future.
v Forensic accounting produces an opinion used for legal purposes while an auditor produces audit opinion or a review opinion not used in court of law.
v Forensic accounting is the process of reconstruction. Often times it is necessary to create or recreate a set of records from a variety of data, not necessarily form the routine documents. Forensic accountants may need to employ many detection techniques in order to rebuild the history using correlative analysis because his far more skilled thand have a strong background in transactional accounting as well. Their goal is to determine what happened, where the money went, how much money was involved or a myriad of other unknowns while auditing is the verification (attestation) that the transactions are valid and that the underlying documentation and other sources of verification can support the reported amounts. It is used to provide credibility to financial activities. Their goal is to verify whether the financial statements show a true and fair view of the business. There is no special techniques needed in auditing since their skills is not up to the forensic accountants skills
v Forensic accountants reports to a corporation’s general counsel while the auditor reports to a corporation’s auditor committee.
v Forensic accountants has background in accounting, criminology and law while an auditor generally have backgrounds in accounting only.
v Forensic accountants who is hired to review financial statements if there are concerns about management fraud, may also targets a smaller fraud that is not material to a company’s financial statement while an auditor are tasked with ensuring that financial statements are free from material misstatement. To the extent they are interested in any individual transaction, they want to know whether that transactions and its treatment by a company conforms with generally accepted accounting principles and how that transaction relates to the company’s financial statements.

            In conclusion, forensic accounting could be defined as the application of auditing and accounting skills to situation that have legal consequences, with evidence usable in a court of law. It is using accounting skills to investigate and analyze financial information for use in legal proceedings example fraud, embezzlement, or other financial crimes while auditing is what is done by auditors, which includes checking the work of the accounting department, but usually involves much more than the accounting work, it also includes other activities of an enterprise, whose actions are reflected in the accounting records. 


2.15    Reasons for Forensic Accountants Ineffectiveness 
            There are problems forensic accountants encounters in the discharge of their duties as we all know that everything that succeeds on earth must have challenges. Below are some of the challenges forensic accountants encounter that makes them ineffective atimes.
  i.            Lack of inability to identify the issues.
ii.            Lack of investigative intuitiveness
iii.            Inability to simplify the information
iv.            Ineffective oral communication
v.            Inability to understand the goals of a case in effective written   communication   
vi.            Inability to synthesize
vii.            Inflexible/close minded.


REFERENCES
Abduiqaderie Qarni, A. (2004). “Audit Expectation gap in Saudi Arabia      Perceptions of Auditors, Preparers of Financial Statements and     users Dundee, UK.  

Anwar, N. (2008) “Forensic Accounting: A dynamic tool for combating      Corruption’. The Financial Express , 1-1. Ohaka.

Bologna, G. J. & Lindquist, R. J. (1987), Fraud Auditing and Forensic          Accounting New Tools and Techniques, New Jersey: Wiley    Publishers, (chpt.3).

Buckhoff, T., & Schrader, R. (2000), ”The Teaching of Forensic        Accounting in the United States”. Journal of Forensic Accounting.   i(i), 135- 145.     

Carnes, K. C., & Gierlasinski, N. J. (2001), “Forensic Accounting Skills: will supply finally catch up with demand”. Managerial Auditing      Journal, 16(6), 378-382. http://dx.doi.org/10.1108/02686900110395514.

Chariri, A. (2007), “The Relevance of Forensic Accounting in Detecting     Financial Frauds”. Journal Organisasi dan manajem, 3(2), 81-88. 

Coenan, T. L. (2005), “Forensic Accounting, A new twist on bear      Counting” (online) Tracey@sequence-inc.com.


Crumbley, D. L.  (2001) “Forensic Accounting: Older than you think”, JFA            2(2) 181.

Crumbley, D. L. (2003), “What is Forensic Accounting’. (online):     www.edwardspub.com.

Crumbley D. L. (2006), “Forensic Accountants Appearing in the Literature” (online): www.forensicaccounting.com. 

Emma, I. O. & Okaro, S. C. (2011), “Forensic Accounting and Auditing        Expectation Gap- the Perception of Accounting Academics.”   (online): www.ssrn..com.

Joshi, M. S. (2003), “Definition of Forensic Accounting” (online):    Available: www.forensicaccounting.com.  

Kasum, A. S. (2009), “The Relevance of Forensic Accounting to Financial Crimes in Private and Public Sectors of third world Economies: A study fraud Ethics and social Responsibility. Illorin, Nigeria pp.11-13.

Kleyman, T. (2006), “A course in Forensic Accounting” (Unpublished Honours College Thesis 40) (online):www.digitalcommons.pece.edu /honorscollege-theses/40.

Koh, H. C. & Woo, E.-S. (1998), “The Expectation Gap in Auditing. Managerial Auditing Journal, 13(3), 147-154.

Ojo, M. (2006), Eliminating the Audit Expectation Gap: myth or Reality?    Muruch Personal Repec Archive.

The Daily Sun Newspaper. (online) available: www. Sunnewsonline.com    (December 23, 2010).

Zysman, A. (2004), “Forensic Accounting Demystified”, World        Investigators Network Standard Practice for Investigative and        Forensic Accounting Engagements, Canadian Institute of        Chartered Accountant, November, 2006. (online) Available:        www.docudesh.com.     

    
              
 


CHAPTER THREE
RESEARCH METHODOLOGY
3.1       Research Design
            The study is mainly designed to find out the relevance of forensic accounting to fraud detection and prevention in private and public sectors in Nigeria using Emenite Ltd, Emene Enugu and Nigerian bottling company Enugu.
            The structural framework of this study is based on the survey research design. In designing the study, the research tried to reduce sources of invalidity by avoiding the use of volunteer as treatment group, which implies that careful selection was made by the researcher from the population as to whom the subject matter under study by the researcher concerns.

3.2       Sources of Data     
            In the course of this research, primary and secondary sources of data where used for information collection n the achievement of the researchers objective of the study.

3.3       Population of Study
            A population is made up of all conceivable elements relating to a particular phenomenon of interest to the research study (Asika 2000). In this study, the researcher used the random sampling method to select two (2) sectors in Enugu where he resides out of numerous private and public sectors in Enugu. The sectors selected comprises of one private sector and one public sector. The sectors selected are
i.          Private -         Emenite limited, Emene Enugu State
ii.         Public-           Nigerian Bottling company Plc, Enugu State
A total of Ninety (90) copies of questionnaire where distributed to Emenite Ltd and Nigerian company evenly, containing the same information of which seventy-eight (78) was returned, out of which sixty-three (63) were correctly filled while fifteen (15) were not correctly filled it then suggests eighty- one percent (81%) success rate and nineteen percent (19%) failure rate as calculated below
63        x          100     = 81% where 63 = number correctly filled
78                    1                                  78 = total number of questionnaire returned  
                                                            100 = constant percentage     


3.4       Sample Size Determination
            Within the study area of private sector a public sector were selected of which only ninety (90) respondents were selected by random sampling since it is humanly impossible to interview every staff of all the public and private sectors in Nigeria. Therefore, since the population is known, this formular was used
n          =          N
                        1+ N(e)2
Where:
n          =          Sample size
N         =          Population
e          =          error margin (0.05)2

3.5       Method of Data Collection
            For the purpose of obtaining necessary information about the relevance of forensic accounting to fraud detection and prevention in private and pubic sectors in Nigeria using the researcher administered the constructed questionnaires in a structured and unstructured questions as well as conducting personal interview with different categories of people which are primary ways of gathering the necessary information needed for this research study.
            Also secondary data source was used which includes information needed about the research topic understudy were taken from already published materials such as text books, journals, magazines, newspapers, libraries and unpublished materials from internet and other peoples dissertation and also through desk research.

3.6       Validation of The Instrument
            The data collection instruments in the course of this study were carefully chosen and applied in such a way as to allow for validity. The questionnaire and interview instrument used in this study indicated that there are some worth characteristics validity in proving to be dependable as to allow for precision, accuracy and error free.

3.7       Reliability of the Instrument         
            The questionnaire and interview turned consistent result in collection of data and indicated their characteristics reliability while the hypotheses were tested the chosen instrument equally indicated their practicability in terms of economic convenience and interpretability. The questionnaire consists of a good number of questions drawn in a way to elicit the required information the questionnaire has.

3.8       Method of Data Analysis      
            The research used the statistical techniques such as percentage table and Z test to analyze the data collected. From the respondents that supports the topic and those that do not support the topic and those that have no idea about the topic understudy. The hypotheses where also analyzed with a percentage table to show the true view of people concerning the topic understudy. This is to ease understanding and interpretation of the result and then draw reasonable conclusion from them.
            The formular used is as follow
Z          = P –Po
            P0C1-P0)
                 n     
Where
            P          = % response positive to answers in the questionnaire
            P0        = positive side of the normal curve usually 0.5
            n          = population used for the study and for critical Z     
            Z ∂       = which ranged between 1 – 10%
            Z 

   
CHAPTER FOUR
DATA PRESENTATION, INTERPRETATION AND ANALYSIS
4.1       Overview
            In this chapter, the information collected or gathered through questionnaire, oral interview, journals, published and unpublished materials, text books and newspapers were analyzed. Analysis is the breaking down of the ordering of the quantitative information gathered through research. A total of ninety (90) questionnaire were distributed and seventy-eight (78) was returned. Out of the seventy-eight (78) that was returned, sixty-three (63) were correctly filled while fifteen (15) were not correctly filled which showed eighty-one (81%) percent success rate and nineteen percent (19%) failure rate. But for the purpose of clearity and understanding we used the number that was correctly filled to analyze to what extend do forensic accounting relevant to fraud detection and prevention in the selected private and public sector out of the numerous in Enugu State.

4.2       Data Analysis          
1.         Is forensic system new in Nigeria
Table – 4.01
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
10
2
12
19
No
25
26
51
81
No idea
-
-
-
-
Total
35
28
63
100

Table 4.01 revealed that nineteen (19%) percent believe that forensic accounting is new in Nigeria while eight-one percent (81%) says that it is not new in Nigeria.

2.         Is there need for the services of a forensic accountant to be employed in your organization.

Table – 4.02
  
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
32
27
59
94
No
-
-
-
-
No idea
3
1
4
6
Total
35
28
63
100

Table 4.02     shows that ninety-four percent (94%) of the respondents admits that the services of a forensic accountant is needed in there organization while six percent (6%) said that they do not know whether the services of forensic accountant is needed in there organization.
3.         Has forensic accountants helped in detecting and preventing fraud?

Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
32
27
59
94
No
-
-
-
-
No idea
3
1
4
6
Total
35
28
63
100
 
Table 4.03 reveals that total of ninety-four percent (94%) of respondents believed that forensic accountant has contributed much in detecting and preventing fraud because of the way they carryout there duty while total of six percent (6%) of the people have no idea as to whether forensic accountant has made impact in detecting and preventing fraud.

4.         Do you think that forensic accountants are analytically minded and inquisitive as people said.
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
21
18
39
62
No
6
8
14
22
No idea
8
2
10
16
Total
35
28
63
100
     
Table 4.04 shows that a total of sixty-two percent (62%) respondents believe that forensic accountants are analytically minded and inquisitive 22% of the respondents said that they are not analytically minded and inquisitive because of the way auditors carryout there own job but sixteen percent (16%) of the respondents said that they do not have any idea as to whether forensic accountants are analytically minded and inquisitive.

5.         Do you believe that the money paid to a forensic accountant is equivalent to the services rendered by him
  Table – 4.05



Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
21
18
39
62
No
5
7
12
19
No idea
9
3
12
19
Total
35
28
63
100
  
Table.4.05 implies that a total of sixty-two percent (62%) of the respondents strongly believe that what is being paid to forensic accountant is commensurate with the services they render while nineteen percent 919%) of the respondents said no to that and nineteen percent  (19%) of the respondents also said they have no idea of it.

6.         Is forensic accountant is different from the traditional auditor
Table -4.06
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
32
27
59
94
No
-
-
-
-
No idea
3
1
4
6
Total
35
28
63
100

Table-4.06 revealed that a total of fifty-nine (59) respondents representing ninety-four percent (94%) are of the opinion that forensic accountants are far better than the auditors in carrying out their duties while four (4) respondents which represents six percent 6% have no ideas as to whether forensic accountants are better than the traditional auditors they know.    

7.         Is there need for a forensic accountant to possess a sense of urgency and commitment?
Table 4.07
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
33
27
60
95
No
-
-
-
-
No idea
2
1
3
5
Total
35
28
63
100

In table 4.07 above, sixty (60) respondents ninety-five percent (59%) agrees that there is every need for a forensic accountant to possess a sense of urgency and commitment to their duties knowing fully well how tasking there job is while three (3) respondents representing five (5%) percent said they do no have idea of it since they are not familiar with what forensic accountants do.

8.         Do you believe that the use of a forensic accountant in an audit investigation will increase the cost of the audit?
Table 4.08
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
4
7
11
18
No
30
20
50
79
No idea
1
1
2
3
Total
35
28
63
100

From table 4.08, eleven (11) respondent representing eighteen  percent (18%) believes that the use of a forensic accountant in an audit investigation will increase the cost of the audit while fifty (50) respondents representing seventy-nine percent (79%) of the respondents strongly believe that n additional cost will be incurred by the organization when forensic accountants will be carrying out their duties and also believe that whatever money paid to them worths there services and two respondents (2) representing three (3%) percent said they have no idea of the question that was asked.

9.         Does the benefits of using forensic accountants, however, out weight their cost

Table 4.09
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
30
20
50
79
No
3
6
9
14
No idea
2
2
4
7
Total
35
28
63
100
 
In reference to the table above, it means that a total of 50 respondents representing seventy-nine percent (79%) are of the opinion that the benefits of using forensic accountants outweighs their cost while nine (9) respondents representing fourteen percent (14%) said that the benefits of using forensic accountants does not outweigh their cost and four (4) respondents said they have no idea of the relationships between the benefit and cost involved in using forensic accountant.

10.       Do you believe that forensic accountants in Nigeria are up to a hard job because of the high rate of dishonesty in the country.

Table 4.10
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
33
27
60
95
No
2
1
3
5
No idea
-
-
-
-
Total
35
28
63
100
  
From table 4:10, sixty (60) respondents representing ninety-five percent (95%) are of the opinion that forensic accountants in Nigeria will find it more difficult to do their job because of the high level of dishonesty in the country while three (3) respondents representing five percent (5%) believe that the high level of dishonesty in Nigeria will not make the job too hard for forensic accountant to do.  

11.       Do you believe that a forensic accountant who is not affected by the limitation of the audit process is in a better position to discover fraud and thus bridge the expectation gap between the auditor and investors.

Table 4.11
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
32
25
57
90
No
3
3
6
10
No idea
-
-
-
-
Total
35
28
63
100
        

In table 4.11 above fifty-seven (57) respondents representing ninety percent (90%) believes that a forensic accountant who is not affected by the limitation of the audit process is in a better position to discover fraud and thus bridge the expectation gap between the auditor and investors while six (6) respondents representing ten percent (10%) believes that a forensic accountant who is affected discover fraud and thus bridge the expectation gap between the auditor and  investors.

12.       Do you believe that the knowledge forensic accounting by accountants, auditors and senior staff in your organization will make some positive impact on the nations fight against fraud and embezzlement (A) Yes (B) no (C) no idea

Table 4.12
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
28
22
50
79
No
6
4
10
16
No idea
1
2
3
5
Total
35
28
63
100

Table 4.12 reveals that fifty (50) respondents representing seventy-nine percent (79%) believes that the knowledge of forensic accounting by their accountants, auditors and senior staff.
Will make some positive impact on the nations fight against fraud and embezzlement while ten (10) respondents representing sixteen percent (16%) of the population said no to the question and three (3) respondents representing five percent 5% of the population have no idea of the questions.   

13.       How did you heard about forensic accounting
Table 4.13
Sources
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Internet
15
12
27
43
Radio/TV
2
3
5
8
Print media
8
6
14
22
Text books/ journal
5
5
10
16
Have not heard
5
2
7
11
Total
35
28
63
100

From table 4.13 twenty-seven (27) respondents representing forty-three percent (43%) said the heard about forensic accounting from internet while five (5) respondent that is eight percent 8% heard about it from radio and television, fourteen (14) respondents which is twenty-two (22%) percent read about forensic accounting print media, ten (10) respondents which is sixteen percent (16%) read about it from text books and journals. Seven (7) respondents which represents’ eleven percent (11%) of the population has no idea of forensic accounting and have not heard about it

4.3       Test of Hypothesis and Analysis
H0-     There is no relationship between forensic accounting and fraud        detection and prevention in Emenite Limited Enugu and Nigerian       bottling company Enugu.
H1-     There is a relationship between forensic accounting and fraud           detection and prevention in Emenite Limited Enugu and Nigerian       bottling company Enugu.

Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
6
4
10
16
No
28
22
50
79
No idea
1
2
3
5
Total
35
28
63
100

Calculated Z:-
Z          =          P – P0
                        P0 (1 – P0)
                                    n
Where P = 79%, P0 = 0.5, n = 63, 1 = constant
Z          = 0.79 – 0.5               0.29                                        0.29
                0.5(1 -0.5)             =          0.25                                        0.003968253968
                        63                                63                                                                   
            0.29                            =
  Z = 0.062994078                4.6036           

Critical Z :-
Z ∂                   = let    ∂ be 5%
  2
:. ∂ = 5            = 0.05
        100
Z ∂                   = 0.05 = 0.025
   2                    2

P0 = 0.5 – 0.025 = 0.4750
From table, 0.4750 is located at 1.9 by 0.06
1.9 + 0.06 = 1.96
Critical Z = 1.96
Decision Rule: 
Since the calculated Z of 4.6036 is greater than the critical Z of 1.96, it then suggests that null hypothesis is accepted while it was to be rejected – which states that, there is no relationship between forensic accounting and fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company Enugu.

Hypothesis two
H0-      There is no relationship between forensic accountant and analytical mind, and inquisitiveness in fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company Enugu.
H1-      There is a relationship between forensic accountant and analytical mind, and inquisitiveness in fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company Enugu.

Table 4.15
Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
6
3
9
14
No
27
20
47
75
No idea
2
20
7
11
Total
35
28
63
100

Calculated Z
Z = P – P0
     P0(1-P0
           n
Where P = 75%, P0 0.5, n =  63, 1 = constant
Z          = 0.75 – 0.5               0.25                                        0.25
                0.5(1 -0.5)             =          0.25                                        0.003968253968
                        63                                63                                                                   
            0.25                            =
  Z = 0.062994078                3.9686           
Let ∂ = 10% = 0.1
Z ∂                   = 0.1   = 0.05
   2                    2
 P0 = 0.5 – 0.05 = 0.4500
From table, 0.4500 is located from table to be 1.6 + 05 = 2.1

Decision Rule  
            Since the calculated Z which is 3.9686 is greater than critical Z that is 2.1, it then suggests that null hypothesis was accepted while it was suppose to be rejected. The null hypothesis says that there is no relationship between forensic accountant and analytical mind and inquisitiveness in fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling company Enugu.

Hypothesis three
H0-      There is no relationship between forensic accountant and their services in fraud detection and prevention in Emenite Ltd Enugu and Nigerian bottling company.     
H1-      There is relationship between forensic accountant and their services in fraud detection and prevention in Emenite Ltd Enugu and Nigerian bottling company. 


Table 4.16
  Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
4
3
7
11
No
31
25
56
89
No idea
-
-
--
-
Total
35
28
63
100

Calculated Z
Using Z = P – P0
                   P0(1 – P0)
                           n

Where P = 89%, P0 0.5, n = 63, 1 constant
Z = 0.89 – 0.5            =          0.39                                0.39
       0.5(1 – 0.5)                     0.25                               0.003968258968
                     63                63

Z = 0.062994078                  = 6.1911
Critical Z
Using Z
   Z                 let ∂     = 5% = 0.05
            2
Z                    = 0.05             = 0.025
       2                    2    
 P0 = 0.5 – 0.025 = 0.4750
From the table; 0.4750 is located at 1.9 by 0.06
1.9 + 0.06 = 1.96

Decision Rule:
Since the calculated Z above is greater than the critical Z we therefore conclude that the null hypothesis was accepted while it was to be rejected- there is no relationship between forensic accountant and their services in fraud detection and prevention in Emenite Limited Enugu and Nigerian bottling Company Enugu.

Hypothesis four
H0-      There is no relationship between forensic accountant and the need for their services in Emenite Limited Emene Enugu and Nigerian bottling company Enugu.  
H1-      There is relationship between forensic accountant and the need for their services in Emenite Limited Emene Enugu and Nigerian bottling company Enugu.  

Table 4.17

  Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
15
9
24
38
No
17
18
35
56
No idea
3
1
4
6
Total
35
28
63
100

Calculated Z
Using Z = P – P0
                   P0(1 – P0)
                           n

Where P = 56%, P0 0.5, n = 63, 1 constant
Z = 0.56 – 0.5            =          0.06                                0.06
       0.5(1 – 0.5)                     0.25                               0.003968258968
                     63                63

Z =      0.06                            =          0.9525
0.062994078            
Critical Z
Using Z
   Z                 let      = 5% = 0.05
            2
Z                    = 0.05             = 0.025
       2                    2    
 P0 = 0.5 – 0.025 = 0.4750
From the table; 0.4750 is located at 1.9 by 0.06
1.9 + 0.06 = 1.96

Decision Rule:
            Since the calculated, Z is less than the critical Z it then suggests that there is a relationship between forensic accountant and the need for their services in Emenite Limited Emene Enugu and Nigeria bottling company Enugu.

Hypothesis five
H0-      There is no relationship between forensic accounting and the negative view about the cost benefit basis, the introduction of some forensic accounting techniques in an audit which is not capable of stemming the tide of financial fraud and thus not cover the audit expectation gap in the organization.

H1-      There is relationship between forensic accounting and the negative view about the cost benefit basis, the introduction of some forensic accounting techniques in an audit which is not capable of stemming the tide of financial fraud and thus not cover the audit expectation gap in the organization.

Table 4.18
Table 4.17

  Responses
Emenite Ltd
Nigerian bottling coy
Total
Percentage
Yes
27
24
51
81
No
7
4
11
17
No idea
1
-
1
2
Total
35
28
63
100

Calculated Z
Using Z = P – P0
                   P0(1 – P0)
                          63

Where P = 81%, P0 0.5, n = 63, 1 constant
Z = 0.81 – 0.5            =          0.31                                0.31
       0.5(1 – 0.5)                     0.25                               0.003968258968
                     63                      63



Z =      0.31                           
0.062994078 = 4.9211       
Critical Z
Using Z
   Z                 let      = 5% = 0.05
            2
Z                    = 0.05             = 0.025
       2                    2    
 P0 = 0.5 – 0.025 = 0.4750
From the table; 0.4750 is located at 1.9 by 0.06
1.9 + 0.06 = 1.96

Decision Rule:
            From the calculation above, the calculated Z is greater than the critical Z and it then concludes that there is no relationship between forensic accounting and the negative view about the cost benefit basis, the introduction not capable of stemming the tide of financial fraud and thus not cover the audit expectation gap in the organization.


CHAPTER FIVE
SUMMARY OF FINDINGS
5.1       Summary of Findings 
            Through my review, I was able to establish the extent of fraud and corruption in developing economics and was also able to establish the impact of corrupt practices on the living conditions of the citizens of these country using some selected population as a representative to all the citizens of the country. The need for the services of forensic accountant was also reported and its need in the third world economics.
            In addition to the above, some empirical studies were done, where questionnaires were administered to capture the perception of individuals in a selected company’s representing numerous companies on the subject matter. The result of the survey was presented in a tabular form and percentage computed so that initial assessment and analysis could be done. They are presented as appendix to the work.
            For the operational question 1 (table 4.01) in chapter 4, it gathers the opinion from sampled people that 81% believes that forensic systems is not new in Nigeria while 19% says it is new in Nigeria. In question 2 (table 4.02) 94% of respondents believes that there is need for the services of a forensic accountant to be employed in their organization while 6% have no idea on employing them or not. Question 3 (table 4.03) states that 94% of the respondents agreed that forensic accountants will help or has helped in detecting and preventing fraud while 6% said that they have no idea. In operational question 4 (table 4.04) and 5 (table 4.05) respectively has its 62% respondents believe that forensic accountants are analytically minded and inquisitive as people said and they also believe that the money paid to forensic accountants worths the services they render while 22% says no to being analytically minded and inquisitiveness of forensic accountants and 19% said no also the money being paid to forensic as its equivalent to the services rendered. 16% and 19% respectively have n idea of the questions asked.
            In question 6( table 4.06), 94% of the respondents in both sectors believes and are of the opinion that forensic accountant is different from the traditional auditor while total of 6% said that they have no idea of the question asked. (table 4.07) that was used to get peoples opinion about question 7, states that 95% of respondents believes that there is need for a forensic accountant to possess a sense of urgency and commitment while 5% of the respondent have no idea. Also question 8 (table 4.08) explains that the use of forensic accountant in an audit investigation will not increase the cost of the audit as supported by79% of the respondents opinion is contrary to the 79% of the respondents and 7.9% f the respondents in question 9 (table 4.09) are of the believe that the benefits of using forensic accounting outweighs its cost while 14% said no and 7% have no idea.
            The result of the respondents on whether they believe that forensic accountants in Nigeria are up to a hard job because of the high rate of dishonesty in the country and a forensic who is not affected by the limitations of the audit process is in a better position to discover fraud and thus bridge the expectation gap between the auditor and investors shows that 95% and 90% in table 4.10 and 4.11 explaining question 10 and 11 respectively shows that they are in support of the sampled questions while 5% and 10% respectively refuted it. In question 12 (table 4.12) 79% of the total respondents are of the opinion that the knowledge of forensic accounting by their accountants, auditors and senior staff will make some positive impact on the nations fight against fraud and embezzlement while 15% refuted it and 5% of the respondents have no idea and in table 4.13 representing question 13 states that 43% of the respondents heard about the forensic accounting on internet while 8%, 22%, 16% 11% heard theirs on Radio/TV, print media, textbooks/ journals  and have not heard respectively as shown in the table.


Testing of Hypothesis      
Hypothesis one (1) suggests that the null hypothesis should be accepted while it was to be rejected as calculate- it shows that the calculated Z of 4.6036 is greater than the critical Z of 1.96 thereby stating that there is no relationship between forensic accounting and fraud detection and prevention in Emenite limited Enugu and Nigerian bottling company Enugu coupled with the 79% of respondents that refuted the question, we then say that there is a relationship between forensic accounting and fraud detection and prevention in Emenite limited Emene and Nigerian bottling company Enugu.
            For hypothesis two (2), the calculated Z is still greater than the critical Z which is 3.9686 > 2.1 respectively which accepted null hypothesis instead of the other way round, though 75% of the respondents where against the null hypothesis and it is a good significant figure. We therefore, holds that there is a relationship between forensic accountant and analytical mind and inquisitiveness in fraud detection and prevention n Emenite limited Enugu and Nigeria bottling company Enugu.
            Hypothesis three (3), the calculated Z which is 6.1911 is greater than the critical Z which is 1.96 and it represent that the null hypothesis was accept while in the normal sense it was to be rejected and the respondents of the hypothesis shows that 89% opined that there should be a relationship between forensic accountant and their services in fraud detection and prevention in Emenite limited Enugu and Nigerian bottling company which is significant and the result gotten may be out of sampling error.
            Hypothesis four (4), the calculated Z which is 0.9525 is less than the critical Z which is 1.96, it still implies that the null hypothesis should be rejected which states that there is no relationship between forensic accountant and the need for their services in Emenite Limited Emene Enugu and Nigerian bottling company Enugu and upholding the alternative.
            Finally, hypothesis five (5) reveals that there is no relationship between forensic accounting and the negative view about the cost benefit basis, the introduction of some forensic accounting techniques in audit which is not capable of stemming the tide of financial fraud and thus not cover the audit expectation gap in organization which was gotten from the calculation that states that the calculated Z which is 4.9211 is greater than critical Z that is 1.96 thereby still upholding the null hypothesis of which the respondents still showed the null hypothesis of which the respondents still showed that the null should be accepted.

5.2       Conclusion                          
            The place for forensic accounting education in Nigeria cannot be over-emphasized and this is in view of the ravaging nature of fraud on the economy of the private and public sectors in Nigeria.
            In summary, the study observed that fraud and corrupt practices are common in developing countries –in private and public sectors, especially in Nigeria and has created negative impact on our economy entirely. We found out empirically that people are aware of forensic accounting and are of the opinion that their services should be engaged in both private and public sectors especially in Emenite Limited Emene Enugu and Nigerian bottling company Enugu in Nigeria and their services are more required for fraud detection and prevention and corruption related issues.
            The test conducted above (51), shows that the result for private and public sector which was examined in chapter four (4) depicts that some wants the services of forensic accountants while some are against it and some said nothing about. Based on the result of the researchers result of his library study and other sources of materials and empirical investigation he concludes as follows:-
v Forensic accounting practice is neither new to the Nigerian private and public sectors and to the developed nor is it in developing nations.
v That corruption in private and public sectors in Nigeria, third world countries is alarming and is not only crumbling their economy but also affecting innocent national’s standard of living and their image
v That the services of the experts (forensic accountants) are expected or required in our private and public sectors and in our developing economy than in the developed economics
v That Nigerian universities should start offering forensic accounting courses in our undergraduate and post-graduate level so as to enlighten more people on the importance of forensic accounting investigation in our private and public sectors as it will help in a long way in our countries fight against fraud, embezzlement and corrupt related issues.
5.3       Recommendation           
            Following the above findings and conclusion, the researcher therefore recommends that
             i.            Forensic accounting techniques should constitute an aspect of the curriculum for the training of undergraduate and post graduate accountants in Nigerian universities and make it to be a must study- especially at post-graduate level, it should be encouraged that students should specialize on the accounting techniques. Furthermore, the institute of chartered accountants of Nigeria and other regulating bodies should include forensic accounting in the curriculum of their professional examination. This is to ensure that all hands is on deck to reduce, if not, to put an end to financial frauds in our country.
           ii.            The government should develop interest in forensic accounting and accountants for monitoring and investigation of suspected and confirmed corruption cases.
        iii.            Practicing accountant should work towards specialization and possibly establish firm for forensic accounting practice only
         iv.            There should be more public enlightenment on the awareness of forensic accounting –its need and benefits via radio, television, journal etc as that will make the junior staff in any organization and layman to know the importance of forensic accounting investigation in our private and public sectors.            

QUESTIONNAIRE
Section A
1.         Is forensic system new in Nigeria? (A) Yes (B) No (C) No Idea 
2.         Is there need for the services of a forensic accountant to be employed in your organization (A) Yes (B) No (C) No Idea 
3.         Has forensic accountants helped in detecting and preventing fraud (A) Yes (B) No (C) No Idea 
4.         Do you think that forensic accountants are annalistically minded and inquisitive as people say (A) Yes (B) No (C) No Idea 
5.         Do you believe that the money paid to a forensic accountant is equivalent to the services rendered by him (A) Yes (B) No (C) No Idea 
6.         Forensic accountant is different from the traditional auditor (A) Yes (B) No (C) No Idea 
7.         Do you believe that a forensic accountant who is not affected by the limitations of the audit process is in a better position to discover fraud and thus bridge the expectation gap between the auditor and investors (A) Yes (B) No (C) No Idea 
8.         Is there need for a forensic accountant to possess a sense of urgency and commitment (A) Yes (B) No (C) No Idea 
9.         Do you believe that the use of a forensic accountant in an audit will increase the cost of the audit (A) Yes (B) No (C) No Idea 
10.       The benefits of using forensic accountant, however, outweigh their costs (A) Yes (B) No (C) No Idea 
11.       The forensic accountant in Nigeria is up to a hard job because of the high rate of dishonesty in the country (A) Yes (B) No (C) No Idea 
12.       How did hear about forensic accounting (a) internet (b) radio/TV (c) Print media (d) Textbooks/journals
13.       Do you believe that employing a forensic accountant would make some positive impact on the detection and prevention of fraud in your organization.
14.       The knowledge of forensic accountant by accountants and auditors in your organization will make some positive impact on the nations fight against fraud and embezzlement (A) Yes (B) No (C) No Idea                    
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