Contemporary issues in Forensics Accounting and Forensics Audit

Abstract

Forensic and investigative accounting is the application of financial skills and investigative mentality to unresolved issues, conducted within the context of the rules of evidence. As a discipline, it encompasses fraud knowledge, financial expertise, and a sound knowledge and understanding of business reality and the working of the legal system. The failure of the major corporate governance mechanism to reduce financial fraud and the increasing sophisticated financial fraud has posed serious threat to investors, government, and general public. Corporate financial fraud could be drawn from recent bank failure in Nigeria where management has fraudulently given loans without board approval and yet such bank annual report has been unqualified. The use of forensic accounting is not yet common in Nigeria, the rate at which financial irregularities in Nigeria is spreading especially in the banking sector has put the focus on the need for forensic accounting techniques to be utilized. Forensic accounting is seen as encapsulating all other investigation related areas in uncovering financial fraud. The increasing sophistication of financial fraud requires that forensic accounting be added to the tools necessary to bring about the successful investigation and prosecution of those individuals involved in criminal activities. The broad objective of this study is to examine an Assessment of the Contemporary Issues in Forensic Accounting and Forensic Audit. The instrument used for data collection was a self developed questionnaire. The data collected were analyzed using Frequencies and Percentages. The recommendations of the study indicated that Federal government through federal ministry of finance should implement policies formulated to address effective Forensic Accounting service in the public sector in Nigeria and Forensic Accounting service should focus on improving the performance of the public sector in Nigeria and financial system in Nigeria.