CHAPTER FOUR

PRESENTATION AND DISCUSSION OF FINDINGS

This chapter presents the findings of the study. It firstly presents the descriptive statistics for
respondent demographic attributes and for the variables. Additionally, it provides assumptions
of the multiple regression model, correlation results, regression bn analysis, hypotheses testing
and finally a discussion of the findings.

4.1. Presentation of Findings

4.1.1. Demographic Information

Table 4.1: Demographic Information

Count Percent

Gender Male 12 34.3%

Female 23 65.7%

Total 35 100.0%

EDUCATION HND 1 2.9%

Degree 23 65.7%

Masters 11 31.4%

PhD 0 0.0%

Total 35 100.0%

YEARS 1 to 3 years 13 37.1%

4 to 7 years 12 34.3%

8 to 11 years 3 8.6%

12 years and 7 20.0%

above

Total 35 100.0%

LEVEL OF High 3 8.6%

AWARENESS OF
Moderate 26 74.3%
FORENSIC
Low 6 17.1%
 ACCOUNTING
Total 35 100.0%
Source: Researcher 2024
The respondents' demographic data is shown in the table above. The gender of the respondents is
the first demographic factor to be considered, as indicated by the table, which indicates that 12
respondents, or 34.3 percent of the study, are male and 23 respondents, or 65.7 percent of the
study, are female. This suggests that both male and female perspectives are presented in the
study.

The respondents' educational background comes next. Based on the data presented in the table, it
can be observed that 1 respondent, or 2.9 percent of the study's participants, holds a Higher
National Diploma (HND), 23 participants, or 31.4 percent of the study's participants, have
degrees, 11 participants, or 31.4 percent of the study's participants, have master's degrees, and
none of the participants holds a PhD. According to the respondents' educational attainment, they
have a sufficient level of education to be useful for the study.

In addition, out of the respondents, 13 have 1 to 3 years of experience, which accounts for 37.1
percent of the study; 12 have 4 to 7 years of experience, which accounts for 34.3 percent of the
study; 3 have 8 to 11 years of experience, which accounts for 8.6 percent of the study; and 7
have more than 12 years of experience, which accounts for 20 percent of the study. This suggests
that the respondents have sufficient accounting and financial experience.

Lastly, regarding respondents' awareness of forensic accounting, 3 respondents said they were
highly aware, 26 respondents, or 74.3 percent of the study's sample, said they were moderately
aware, and 6 respondents, or 17.1 percent of the sample, said they were lowly informed.

4.1.2. Findings on Forensic Accounting on Fraud Detection and Recovery

4.1.2.1. Descriptive Findings on Fraud Detection and Recovery

Table 4.2: Descriptive Findings on Fraud Detection and Recovery

Strongly Disagre Strongly
Disagree e Neutral Agree Agree
N % N % N % N % N %
There is efficient management information 8.
2.9 11.4 34.3 42.9
system and systematic record keeping 1 3 6 4 12 15
% % % %
%
The accounting books are checked for accuracy 2.
0.0 8.6 45.7 42.9
ensuring effective management oversight 0 1 9 3 16 15
% % % %
%
There is routine audit checks of policies and 2.
2.9 14.3 42.9 37.1
systems 1 1 9 5 15 13
% % % %
%
The management sets example and enforce a 2.
2.9 17.1 40.0 37.1
zero-tolerance approach on fraud issues 1 1 9 6 14 13
% % % %
%
There is a policy of reporting all frauds to legal 2.
2.9 22.9 42.9 28.6
authorities and ensuring effective reporting 1 1 9 8 15 10
% % % %
channels %
Source: Researcher 2024
The table above shows findings on Fraud Detection and Recovery which is the dependent
variable of our study. From the table, to know if there is efficient management information
system and systematic record keeping. 1 respondents (2.9 percent of the study) strongly disagree,
3 respondents (8.6% of the study) disagree, 4 respondents (11.4 percent of the study) are
undecided, 12 respondents (34.3 percent of the study) agree, and 15 respondents (42.9% of the
study) strongly agree. As a result, it is possible to conclude that there is efficient management
information system and systematic record keeping.

Second, it was asked if respondents the accounting books are checked for accuracy ensuring
effective management oversight. 1 respondent (2.9 percent) disagree, 3 respondents (8.6 percent)
are undecided, 16 respondents (45.7 percent) agree, and 15 respondents (42.9 percent) strongly
agree. As a result, it is clear that the accounting books are checked for accuracy ensuring
effective management oversight.

Furthermore, it was sought to determine whether there is routine audit checks of policies and
systems. 1 respondent (2.9 percent) strongly disagreed, 1 respondent (2.9 percent) disagreed, 5
respondents (14.3 percent) are undecided, 15 respondents (42.9 percent) agree, and 13
respondents (37.1 percent) strongly agreed. This establishes that there is routine audit checks of
policies and systems.

Finding out if management leads by example and takes a zero-tolerance stance toward fraud
concerns was another goal. There were 6 respondents (17.1%) who are unsure, 14 respondents
(40.0%) who agree, and 13 respondents (37.1%) who strongly agreed. Of the respondents, 1
participant (2.9 percent) disagreed. As a result, it is demonstrated that management leads by
example and takes a zero-tolerance stance toward fraud.
Lastly, it was sought to determine whether there is a policy of reporting all frauds to legal
authorities and ensuring effective reporting channels. 1 respondent (2.9 percent) strongly
disagreed, 1 respondent (2.9 percent) disagreed, 8 respondents (22.9 percent) are undecided, 15
respondents (42.9 percent) agree, and 10 respondents (28.6 percent) strongly agreed. This
establishes that there is a policy of reporting all frauds to legal authorities and ensuring effective
reporting channels.

4.1.2.2. Descriptive Findings on Litigation Support

Table 4.3: Descriptive Findings on Litigation Support

Strongly Strongly
Disagree Disagree Neutral Agree Agree
N % N % N % N % N %
It provides analysis of the financial 8.6 2.9 22.9 57.1
3 1 8 20 3 8.6%
components of the initial complaint % % % %
Application of litigation support aids in
8.6 5.7 14.3 42.9 28.6
document examination to determine forgeries 3 2 5 15 10
% % % % %
and alterations
Risk assessment under litigation support 5.7 20.0 25.7 34.3 14.3
2 7 9 12 5
specifically supports covers financial crime % % % % %
Litigation support helps in quantification of 2.9 11.4 20.0 51.4 14.3
1 4 7 18 5
financial damages % % % % %
Litigation support helps in preparation of 5.7 2.9 25.7 45.7 20.0
2 1 9 16 7
disclosure statements including expert reports % % % % %
Source: Researcher 2024
The table above shows findings on Litigation Support which is one of the independent variables
of our study. From the table, to know if it provides analysis of the financial components of the
initial complaint. 3 respondents (8.6 percent of the study) strongly disagree, 1 respondents (2.9%
of the study) disagree, 8 respondents (22.9 percent of the study) are undecided, 20 respondents
(57.1 percent of the study) agree, and 3 respondents (8.6% of the study) strongly agree. As a
result, it is possible to conclude that it provides analysis of the financial components of the initial
complaint.

Second, it was asked if application of litigation support aids in document examination to

determine forgeries and alterations. 3 respondent (8.6 percent) strongly disagree, 2 respondent
(5.7 percent) disagree, 5 respondents (14.3 percent) are undecided, 15 respondents (42.9 percent)
 agree, and 10 respondents (28.6 percent) strongly agree. As a result, application of litigation
support aids in document examination to determine forgeries and alterations.

Furthermore, it was sought to determine whether risk assessment under litigation support
specifically supports covers financial crime. 2 respondent (5.7 percent) strongly disagreed, 7
respondent (20.0 percent) disagreed, 9 respondents (25.7 percent) are undecided, 12 respondents
(34.3 percent) agree, and 5 respondents (14.3 percent) strongly agreed. This establishes that risk
assessment under litigation support specifically supports covers financial crime.

The question of whether litigation support helps with the computation of monetary damages was
also investigated. There are seven respondents (20.0%) who are unsure, four (11.4%) who
disagree, one respondent (2.9%) who strongly disagrees, eighteen (51.4%) who agree, and five
(14.3%) who strongly agree. This demonstrates how aiding in litigation can help determine
monetary damages.

Finding out if litigation support aids in the creation of disclosure statements, including expert
reports, was the final goal. Of the respondents, 16 (45.7 percent) agreed, 7 (20.0 percent)
strongly agreed, 2 (5.7 percent) disagreed, 1 (2.9 percent) disagreed, 9 (25.7 percent) are
undecided. This demonstrates how preparing disclosure statements, including expert reports, is
aided by litigation support.

4.1.2.3. Descriptive Findings on Investigation

Table 4.4: Descriptive Findings on Investigation

Strongly Strongly
Disagree Disagree Neutral Agree Agree
N % N % N % N % N %
Investigation helps in providing 5.7 14. 14. 1 40. 25.
2 5 5 9
evaluation of merits % 3% 3% 4 0% 7%
Help to investigate any red flags 5.7 5.7 11. 1 42. 1 34.
2 2 4
identified during routine audits % % 4% 5 9% 2 3%
Assist in fraud risk assessment and 5.7 5.7 25. 25. 1 37.
2 2 9 9
conduct employee anti-fraud education % % 7% 7% 3 1%
Conducting of data analysis on
2.9 8.6 5.7 2 68. 14.
transactions to identify any abnormal 1
%
3
%
2
% 4 6%
5
3%
trend.
It enhances the identification of illegal 5.7 5.7 14. 1 40. 1 34.
2 2 5
activities % % 3% 4 0% 2 3%
Source: Researcher 2024
Investigation is one of the independent variables in our study, and the results are displayed in the
table above. Determine from the table if professional investigation aids in merit evaluation. The
research yielded the following results: 14 respondents (40.0 percent) agree, 9 respondents (25.7
percent) strongly agree, 5 respondents (14.3 percent) disagree, 5 respondents (14.3 percent) are
undecided, and 2 respondents (5.7 percent) severely disagree. Thus, it may be said that
professional investigation aids in merit evaluation.

Second, it was asked if respondents investigation help to reveal any red flags identified during
routine audits. 2 of the respondents which 5.7% of the study strongly disagree, another 2
respondent (5.7 percent) disagree, 4 respondents (11.4 percent) are undecided, 15 respondents
(42.9 percent) agree, and 12 respondents (34.3 percent) strongly agree. As a result, it is clear that
it helps to investigate any red flags identified during routine audits.

Additionally, the question of whether investigation helps with fraud risk assessment and staff
anti-fraud training was pursued. There were 13 responses (37.1%) who strongly agreed, 2
respondents (5.7%) who disagreed, 9 respondents (25.7%) who are undecided, and 2 respondents
(5.7%) who severely disagreed. This demonstrates that investigation aids in the evaluation of
fraud risk and provides anti-fraud training to employees.

Furthermore, it was sought to determine whether professional investigation conducting of data

analysis on transactions to identify any abnormal trend. 1 respondent (2.9 percent) strongly
disagreed, 3 respondent (8.6 percent) disagreed, 2 respondents (5.7 percent) are undecided, 24
respondents (68.6 percent) agree, and 5 respondents (14.3 percent) strongly agreed. This
establishes that investigation conducting of data analysis on transactions to identify any
abnormal trend.
Lastly, it was sought to determine whether investigation enhances the identification of illegal
activities. 2 respondent (5.7 percent) strongly disagreed, 2 respondent (5.7 percent) disagreed, 5
respondents (14.3 percent) are undecided, 14 respondents (40.0 percent) agree, and 12
respondents (34.3 percent) strongly agreed. This establishes that expert investigation enhances
the identification of illegal activities.
4.1.2.4. Descriptive Findings on Dispute Resolution

Table 4.5: Descriptive Findings on Dispute Resolution

Strongly Strongly
Disagree Disagree Neutral Agree Agree
N % N % N % N % N %
It is a useful tool used for resolving 8.6 5.7 20.0 1 45.7 20.0
3 2 7 7
disputes legally and traditionally % % % 6 % %
Preserves the reputation of the
2.9 8.6 1 28.6 1 48.6 11.4
litigants and creates high chances to 1
%
3
% 0 % 7 %
4
%
recover stolen assets
It encourages self-confession by
fraudsters who may disclose other 2.9 14.3 1 31.4 1 37.1 14.3
1 5 5
facts that may be useful to strengthen % % 1 % 3 % %
and curb subsequent frauds.
Application of dispute resolution
through interest-based neutrals help
0.0 11.4 1 34.3 1 31.4 22.9
manage dispute and leave decision 0
%
4
% 2 % 1 %
8
%
making authority to the parties
themselves
It provides clients with awareness of 0.0 17.1 22.9 1 37.1 22.9
0 6 8 8
the organizations’ credibility % % % 3 % %
Source: Researcher 2024
The findings for one of our study's independent variables, conflict resolution, are displayed in the
table above. To ascertain if conflict resolution is a helpful technique for settling legal and
conventional issues based on the table. Three respondents (8.6% of the research sample) strongly
disagree, two respondents (5.7%) disagree, seven respondents (20.0%) are unsure, sixteen
respondents (45.7%) agree, and seven respondents (20.0%) definitely agree. It is therefore
feasible to draw the conclusion that conflict resolution is a helpful instrument for settling
disagreements in a conventional and legal manner.

Second, it was asked if dispute resolution preserves the reputation of the litigants and creates
high chances to recover stolen assets. 1 respondent (2.9 percent) strongly disagree, 3 respondent
(8.6 percent) disagree, 10 respondents (28.6 percent) are undecided, 17 respondents (48.6
percent) agree, and 4 respondents (11.4 percent) strongly agree. As a result, it is clear that
dispute resolution preserves the reputation of the litigants and creates high chances to recover
stolen assets.

Furthermore, it was sought to determine whether dispute resolution encourages self-confession

by fraudsters who may disclose other facts that may be useful to strengthen and curb subsequent
frauds. 1 respondent (2.9 percent) strongly disagreed, 5 respondent (14.3 percent) disagreed, 11
respondents (31.4 percent) are undecided, 13 respondents (37.1 percent) agree, and 5 respondents
(14.3 percent) strongly agreed. This establishes that dispute resolution encourages self-
confession by fraudsters who may disclose other facts that may be useful to strengthen and curb
subsequent frauds.

Also, it was sought to determine whether application of dispute resolution through interest-based
neutrals help manage dispute and leave decision making authority to the parties themselves. 4
respondent (11.4 percent) disagreed, 12 respondents (34.3 percent) are undecided, 11
respondents (31.4 percent) agree, and 8 respondents (22.9 percent) strongly agreed. This
establishes that Application of dispute resolution through interest-based neutrals help manage
dispute and leave decision making authority to the parties themselves.

Lastly, it was sought to determine whether dispute resolution provides clients with awareness of
the organizations’ credibility. 6 respondent (17.1 percent) disagreed, 8 respondents (22.9
percent) are undecided, 13 respondents (37.1 percent) agree, and 8 respondents (22.9 percent)
strongly agreed. This establishes that dispute resolution provides clients with awareness of the
organizations’ credibility.

4.1.3. Inferential Statistics

4.1.3.1. Factor Analysis

Table 4.6: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
.690
Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square 66.756
df 3
Sig. .000
Source: Researcher 2024

Factor analysis was conducted using Principal Component Analysis and Varimax rotation
method. The KMO measure was 0.690. Tabachnick & Fidell (2007) opined that a KMO measure
0.6 as a minimum threshold for data adequacy for factor analysis hence the data was adequate for
factor analysis. The Bartlett’s test of Sphericity was Chi- Square 66.756 which was significant.
The significance of the Bartlett’s test of Sphericity implies that the factors show significant
patterned relationships.

Table 4.7: Communalities

Extracti
Initial on

Litigatory Support 1.000 .908

Investigation 1.000 .809
Dispute resolution 1.000 .790

Source: Researcher 2024

Extraction Method: Principal Component Analysis.

Table 9 displays how much of the variance for each variable can be attributed to the factor.
Known by another notation, h2, it is the total squared factors loading for the variables.

Table 4.8: Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings
Compone % of Cumulative % of Cumulative
nt Total Variance % Total Variance %
1 2.507 83.565 83.565 2.507 83.565 83.565
2 .350 11.666 95.231
3 .143 4.769 100.000
Source: Researcher 2024
Extraction Method: Principal Component Analysis.

According to Table 10, a principal component analysis's first communality eigenvalue is 1. The
eigenvalues are in the column labelled total. The variation will always be accounted for most by
the first component, which will then be accounted for by the following item to the greatest extent
possible, and so on. Thus, the variation explained by each subsequent component will decrease.
Four factors that account for 83.565, 11.666, 6.690, and 4.769 of the variance of all the scores
were recovered using the method for extracting factors (eigenvalues larger than 1).

4.1.3.2. Collinearity Analysis

Table 4.9: Collinearity Analysis
Collinearity Statistics
Tolerance VIF
Litigation Support .218 4.592
Investigation .336 2.978
Dispute resolution .374 2.676
Source: Researcher 2024
The degree of multicollinearity is measured by the VIF result, which is displayed in the table. A
variable is considered very collinear, and multicollinearity becomes problematic if the VIF of its
coefficient is more than 10. (Gujarati, 2004). The VIF result indicates that none of the
independent variables individually surpasses 10, indicating that multicollinearity among the
variables is not an issue.

4.1.3.3. Regression Analysis

Table 4.10: Model Summary

Std. Error
Mod R Adjusted R of the
el R Square Square Estimate

1 .793a .628 .592 .41962

Source: Researcher 2024

a. Predictors: (Constant), Dispute resolution, Investigation, Litigation Support

Based on Table 13, the independent variables under investigation account for 59.2% of the fraud
detection, as indicated by the adjusted R 2. This implies that 40.8% of fraud detection and
recovery is attributable to other factors not covered in this study. Consequently, further study has
to be done to look into the other factors (40.8%) that affect fraud detection and recovery.
Table 4.11: ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regressio
9.227 3 3.076 17.468 .000b
n
Residual 5.458 31 .176
Total 14.686 34
Source: Researcher 2024
a. Dependent Variable: Fraud detection and Recovery
b. Predictors: (Constant), Dispute resolution, Investigation, Litigation Support
The overall fit of the regression model to the data was evaluated by calculating the F-ratio in the
ANOVA table tests. Using ANOVA, it was possible to determine if the models as a whole could
provide a meaningfully accurate forecast of the outcome variable. It may be inferred from the
test that other factors not included in this model may have accounted for the remaining variation,
since the significant F value had a significance level of 0.000, indicating that the independent
variables are statistically significant in predicting the dependent variable. Due to the f statistic
and a significant value (p-value) of less than 5%, the data is therefore perfect for drawing the
conclusion that the independent variables are good predictors of fraud detection and recovery in
MFIs.

Table 4.12: Coefficientsa

Standardiz
ed 95.0%
Unstandardize Coefficient Confidence
d Coefficients s Interval for B
Upp
er
Std. Lower Bou
Model B Error Beta t Sig. Bound nd
1 (Constant) 4.25 2.36
1.241 .551 .000 .116
0 5
Litigation 1.40
.095 .234 .095 .008 -.383 .573
Support 5
Investigation 2.10
.244 .222 .208 .000 -.207 .696
3
Dispute 3.10
.465 .150 .556 .004 .159 .771
resolution 4
Source: Researcher 2024
a. Dependent Variable: Fraud detection and Recovery

Table 15 expands on the model parameters. The intercept (often labelled the constant) is the
predictable mean value of Y when all independent variables everything being constant, forensic
accounting. Furthermore, the fraud detection and recovery, is significant as given by the
significance of the t – statistic of 0.000. This means that we will be taking a 0.05% risk in
assuming that the MFIs will be significantly have fraud detection and recovery in MFIs in the
absence of forensic accounting which is more than the level of significance of 5%.

From table 15, litigatory support have a positive and significant relationship with the fraud
detection and recovery in MFIs. From the model, the beta coefficient for the litigatory support is
0.095. With the help of the t statistic, there is a significant relationship as shown by a P-Value of
0.008 which is equal to the alpha of 0.05 or 5% at the 95% confidence interval. Therefore,
litigatory support have a negative and significant influence on the fraud detection and recovery in
MFIs.

From table 15, investigation has a positive and significant relationship with the fraud detection
and recovery in MFIs. From the model, the beta coefficient for investigation is 0.244. With the
help of the t statistic, there is a significant relationship as shown by a P-Value of 0.004 which is
equal to the alpha of 0.05 or 5% at the 95% confidence interval. Therefore, investigation has a
negative and significant influence on the fraud detection and recovery in MFIs.

From table 15, dispute resolution has a positive and significant relationship with the fraud
detection and recovery in MFIs. From the model, the beta coefficient for the dispute resolution is
0.465. With the help of the t statistic, there is a significant relationship as shown by a P-Value of
0.000 which is equal to the alpha of 0.05 or 5% at the 95% confidence interval. Therefore,
dispute resolution has a negative and significant influence on the fraud detection and recovery in
MFIs.

4.2. Discussion of Results

4.2.1. The Effect of Litigation Support on Fraud Detection

The first objective of the study was to assess the impact of litigation support skills on fraud
detection and recovery of micro-finance institutions in Buea municipality. The study shows that
it provides analysis of the financial components of the initial complaint, application of litigation
support aids in document examination to determine forgeries and alterations, risk assessment
under litigation support specifically supports covers financial crime, litigation support helps in
quantification of financial damages and litigation support helps in preparation of disclosure
statements including expert reports. Similarly, litigation support had a coefficient of estimation β
3 =.255 (p value = 0.001 <0.05) which was positive and significant. The null hypothesis H 01 had
stated that litigation support has no significant effect on deterrence of incidence of fraud. We
rejected the null hypothesis H03 and concluded that litigation support has a positive and
significant effect on incidence of fraud. This confirmed that litigation support was also a very
essential practice for deterrence of incidence of fraud causing up to .255 increase in deterrence of
incidence of fraud whose effect was significant.

In their study, Mukoro et al. (2103) repeatedly confirmed this result and pointed out the
importance of legal assistance in the battle against corruption. They said that as litigation support
services give victims of fraud a way to hold offenders accountable, they are crucial in reducing
the frequency of fraud when combined with efficient fraud investigations. They went on to say
that because of their specific training and investigative duties, forensic accountants are better
equipped to combat criminality. However, they pointed out that in order for this to be
accomplished in this day and age, the accounting profession needs to constantly advance and
provide its members with training and education to position them for success in the cutthroat
world. According to Enofe et al. (2015), legal support has a major impact on the frequency of
fraud. According to their theory, the use of litigation support services helps reduce financial
fraud by assisting in the prosecution of fraudsters and the imposition of penalties, all of which
increase the credibility of financial reporting and accounting. However, Eyo and Ebahi (2017)
disagreed with the relevance, which is a different opinion from what previous research have
shown.

4.2.2. The Effect of Investigation on Fraud Detection

The second objective of the study was to evaluate how investigation skills influence fraud
detection and recovery of micro-finance institutions in Buea municipality. The findings show
that investigation helps in providing evaluation of merits, it helps to investigate any red flags
identified during routine audits, it assists in fraud risk assessment and conduct employee anti-
fraud education, conducting of data analysis on transactions to identify any abnormal trend and it
enhances the identification of illegal activities.

In order to better understand the benefits of integrating fraud specialists in the planning stage of
an audit, Boritz & Robinson (2008) carried out empirical research in Ontario, Canada, to look
into the roles of forensic accountants and auditors in helping auditors discover financial crime.
Nine financial risk management specialists and 46 forensic accountants made up the study's
sample. The study's data were gathered using the structure questionnaire. Descriptive statistics
were used in the data analysis process. According to their research, involving fraud specialists in
the risk assessment process yields better outcomes than merely consulting them and soliciting
their opinions and offering summary risk assessments. The report suggests that forensic
accounting specialists be taken into account at every level of the planning process for financial
crime and audits.

Oluwagbemiga (2010), conducted a study on “the role of auditors in financial crimes detection
and prevention in Nigeria”. The study employed survey research design and the primary data
used collected through the administration of designed questionnaire to respondents. According to
the researcher, the use of convenience sampling methodology was adopted; the respondents were
bankers, managers, investors and accountants. 184 questionnaires were analysed using
descriptive statistics that yielded a 92 per cent response rate. Furthermore, more than 90 per cent
of the respondents claimed that they were aware of what auditors do. The high level of
awareness combined with their accounting qualifications and audit experience added credibility
to the findings of the research. Thus, we reject the second hypothesis of the study which states
that investigation skill has no significant effect on fraud detection and recovery. The major
finding of this study is that auditors are not responsible for preventing or detecting fraud. This
study was also carried out in the private sector.

4.2.3. The Effect of Dispute Resolution on Fraud Detection

The third objective of the study was to investigate the effects of dispute resolution skills on fraud
detection and recovery of micro-finance institutions in Buea municipality. The findings show
that it is a useful tool used for resolving disputes legally and traditionally, Preserves the
reputation of the litigants and creates high chances to recover stolen assets, it encourages self-
confession by fraudsters who may disclose other facts that may be useful to strengthen and curb
subsequent frauds, application of dispute resolution through interest-based neutrals help manage
dispute and leave decision making authority to the parties themselves and it provides clients with
awareness of the organizations’ credibility.

Similarly, Okoye (2011) conducted empirical studies to determine the effectiveness of forensic
accounting as a tool for fraud detection and prevention. The study used primary and secondary
sources of data. The study found that the use of forensic accounting significantly reduces the
occurrence of fraud cases in the public sector, in Kogi State. The study therefore recommends for
complete implementation of forensic accounting system to better the detection and prevention of
fraud and economic crimes cases in the public sector organization of Kogi State.

The role of forensic accounting in fraud detection and national security was examined by
Mukorol & Faboyede (2013). The aim of this research project is to investigate how forensic
accounting, in addition to providing litigation support services, documentation, and reporting,
may aid in the battle against corruption by applying investigative capabilities. The Federal Inland
Revenue Service served as the research's population (FIRS). The empirical results demonstrate
the value of forensic accountants in the investigation of criminal activity and official corruption.
In the public sector, forensic accountants are important for reporting and documentation needs
and play a part in litigation support services. It has been noted that forensic accounting is crucial
to reducing crime and unethical behaviour in any public

In a similar vein, Ijeoma (2015) used a descriptive research design and a sample of 100 randomly
selected chartered accountants and university lecturers in the accountancy department at Nnamdi
Azikiwe University in Awka, Nigeria, to empirically analyse the application of forensic
accounting techniques in reducing financial crimes. This study's primary goal was to investigate
forensic accounting methods' ability to reduce creative accounting through empirical analysis.
The outcome further demonstrated the substantial evidence that forensic accountants have
become more efficient over time. Furthermore, it was discovered that there is compelling
evidence to suggest that the rise of forensic accountants has helped people once again trust
corporate entities and their reports. Based on this finding, we reject the third hypothesis which
states that there is no significant effect of dispute resolution skill on fraud detection and
recovery. Thus, by the application of accounting concepts, auditing techniques, and investigation
methods to the resolution of specific legal forensic issues.