THE EFFECTIVENESS OF FORENSIC ACCOUNTING AS A TOOL FOR

DETECTING FRAUD AND CORRUPTION IN NIGERIA PUBLIC SECTOR

BY

AKINLOSOSE OLUWATOBILOBA MERCY

FPI/HND/ACC/21/016

A PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF HIGHER NATIONAL DIPLOMA IN ACCOUNTANCY AT THE
DEPARTMENT OF ACCOUNTANCY SCHOOL OF BUSINESS AND MANAGEMENT
STUDIES FEDERAL POLYTECHNIC ILE-OLUJI, ONDO STATE

DECEMBER, 2023

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 CERTIFICATION
This is to certify that this study was carried out by Akinlososo Oluwatobiloba Mercy
Matric Number FPI/HND/ACC/21/016 in the Department of Accountancy, School of
Business and Management Studies. Federal Polytechnic, Ile-Oluji, under my supervision.

Mr. Akindutire S. O.
Supervisor Signature and Date

Mr. Adesina, O. D.
HOD Signature and Date

Dr. Gbenga Jinadu

External Examiner Signature and Date

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 DEDICATION

This research work is dedicated to Almighty God.

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 ACKNOWLEDGEMENTS

First and foremost, I would like to express my deepest gratitude to the Almighty God for His
grace, guidance, and blessings throughout the course of this research project. Without His divine
wisdom and unwavering support, this endeavor would not have been possible.

I am immensely grateful to my project supervisor, Mr. Akinditire S.O, for his invaluable
guidance, expertise, and continuous encouragement. His profound knowledge, constructive
feedback, and unwavering commitment to academic excellence have been instrumental in
shaping this research work. I am truly privileged to have had the opportunity to learn from him.

I extend my sincere appreciation to the Head of Department (ACCONTANCY) and my lecturers

for their tireless efforts in imparting knowledge and providing a conducive academic
environment. Their dedication to excellence and passion for teaching have greatly contributed to
my intellectual growth and development.

I would like to express my heartfelt gratitude to my parents, Late.Mr/Mrs Akinlosose And

Apostles Ralph Olalaken Obolanle and Pastor Mrs Yemi Falvour Obolanle for their unwavering
love, support, and encouragement throughout my academic journey. Their sacrifices, guidance,
and belief in my abilities have been a constant source of inspiration. I am also grateful to my
siblings Mr.Boluwaji Akinlosose Miss Kemisola Akinlosose , Praise , Samuel And Dora
Obolanle

I would like to acknowledge the invaluable contribution of my project colleagues who have
provided their assistance and collaborative efforts. Their dedication, teamwork, and shared
enthusiasm have enhanced the quality of this research work. I would also like to extend my
appreciation to my friends, Oluwaseyi, Helen, Damilola, Victoria, Faith, Esther and Adeola all
that I can’t mention their names for their unwavering support and understanding during this
academic pursuit.

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 Abstract
This study investigates the effectiveness of forensic accounting as a tool for detecting and
preventing fraud and corruption within Nigeria's public sector. Through a survey research
design, the research aims to analyze the perceptions, challenges, and potential solutions
associated with the application of forensic accounting principles in public corporations. A
survey was conducted among 109 staff members, including directors, accountants, and auditors,
randomly selected from three public corporations: Nigerian National Petroleum Corporation
(NNPC), Nigerian Electricity Regulatory Commission (NERC), and Nigerian Customs Service
(NCS). The study explores the respondents' views on the utility of forensic accounting,
challenges faced, and the transparency of publicizing fraud cases. The research reveals an
optimistic outlook on the application of forensic accounting in Nigeria's public sector.
Respondents express a strong belief in its effectiveness and its active use by public corporations
to combat fraud. However, challenges related to practical implementation, a perceived scarcity
of skilled forensic accountants, and the high cost of adoption are identified. The study also raises
concerns about the lack of transparency in publicizing fraud cases, underscoring potential issues
in corporate governance practices. While there is a positive perception of the value of forensic
accounting in Nigeria, the study emphasizes the need to address practical challenges, enhance
transparency, and invest in the development of a skilled workforce. The findings underscore the
importance of continued research, professional development, and strategic initiatives to
strengthen the application of forensic accounting for fraud detection and prevention in the
Nigerian business environment. The study proposes recommendations such as capacity building
and training, exploring cost-effective forensic accounting solutions, publicizing success stories,
government and regulatory support, collaboration with educational institutions, continuous
research and development, enhancing corporate governance practices, fostering industry forums
and networking, financial assistance programs, and periodic review and evaluation.
Implementing these recommendations can contribute to a more effective use of forensic
accounting in combating fraud, ensuring financial integrity, and building trust in Nigeria's
public sector.

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 PRELIMINARY PAGES

Content Page
Title Page i
Certification ii
Dedication iii
Acknowledgements iv
Abstract v
Table of Contents vi
List of Tables viii
Chapter One: Introduction
1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Research Questions 3
1.4 Objectives of the Study 4
1.5 Hypothesis 4
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Limitations of the Study 6
1.9 Operational Definitions of Terms 6

Chapter Two: Literature Review

2.0 Introduction 8
2.1 Conceptual Review 8
2.2 Theoretical Review 26
2.3 Empirical Review 31
2.5 Gaps in Literature 36

Chapter Three: Methodology

3.0 Preamble 38
3.1 Research Design 38

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3.2 Population of the Study 38
3.3 Sample Size and Sampling Techniques 38
3.4 Sources of Data Collection 38
3.5 Model Specification 39
3.6 Measurement of Variables 40
3.7 Data Analysis Techniques 41

Chapter Four: Results and Discussion

4.1 Introduction 42

4.2 Data Presentation and Analysis 42

4.3 Regression Analysis 48

4.4 Discussion of Findings in relation to your hypotheses. 52

Chapter Five: Summary, Conclusion and Recommendation

5.1 Summary 56
5.2 Conclusions 57
5.3 Recommendations 58
5.4 Area for Further Research 59
Reference

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