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.