EFFECT OF FORENSIC AUDIT ON FRAUD DETECTION AND PREVENTION

ABSTRACT

The  research was carried out  as a  result  of the  increasing rate  of fraud   in  organizations. Some  frauds  perpetration last  for   years without   detection though traditional  audits  are  being  carried out. The main objective of the  study  is to  determine if forensic audit  is an  effective tool   for   fraud   detection and   prevention and  other specific objectives. To achieve the  objectives of the  study,  survey method was  applied with   the   use  of  questionnaires which  was employed to  analyze the  research questions and  hypotheses.  The research work  consists  to  two  hypotheses -  forensic audit  has no significant on fraud detection and prevention,  and ProactiveForensic audit  has no significant relationship on the efficiency of the  Internal Control ﾿ System.  The   hypothesis  I   was   tested    using   simple Regressionwhile the  Pearsoncorrelation coefficient  was utilized to test  the  HypothesisIL  The calculated value of t is  greater  than  the tabulated value  (i.e.  14.489>3.343;   P=0.000)  and the  Coefficient  of the  correlation is positive (b  =  0.847)  for  hypothesis  I  and a high significant relationship (0. 915)  for hypothesis II.  Both findings ledto the  rejection of the  Null hypotheses leading to  the  conclusion that forensic audit  an effective tool for detecting and preventing fraud.  It is therefore  recommended that   organization should engage the servicesof forensic auditing.

TABLE  OF CONTENTS

TITLE PAGE

DECLARATION

APPROVAL PAGE

DEDICATION• 

ACTKNOWLEDGEMENT 

TABLE OF CONTENTS 

ABSTRACT   -

CHAPTER   ONE

1.1 ﾿ BACKGROUND OF THE STUDY ﾿ 1-2

1.2 ﾿ STATEMENT OF THE PROBLEM ﾿ 3

1.3 ﾿ OBJECTIVES OF THE STUDY  - ﾿ 4

1.4 ﾿ RESEARCH QUESTIONS ﾿ 5

1.5 ﾿ RESEARCH HYPOTHESES ﾿ 6

1.6 ﾿ SIGNIFICANCE   OF THE STUDY ﾿ 7

1. 7 ﾿ SCOPE OF THE STUDY  - ﾿ 8

1.8 ﾿ LIMITATIONS   OF THE STUDY ﾿ 9

CHAPTER  TWO

2.0 ﾿ LITERATURE REVIEW ﾿

2.1 ﾿ NATURE OF FRAUD ﾿ 10-11

2.2 ﾿ CAUSES OF FRAUDS IN  NIGERIA ﾿ 11-15

2.3 ﾿ FORMS OF FRAUDS ﾿ 16

2.4 ﾿ TYPES OF FRAUDS ﾿ 17-22

2.5 ﾿ EFFECTS OF BANK FRAUDS   - ﾿ 23-25

2.6 ﾿ CASES OF BANK FRUAD IN  NIGERIA ﾿ 26-27

2. 7 NATURE OF FORENSIC AUDITING   -

2.8  SKILLS  REQUIRED  BY A FORENSIC AUDITOR  -

2.9  THE ROLE OF THE FORENSIC AUDITOR  -

2.10    APPLICATION  OF FORENSIC AUDIT

2.11  CERTIFIED  FRAUD EXAMINERS  (CFE)   -

2. 12 EMPIRICAL  REVIEWS  -

CHAPTER THREE

3.0  RESEARCH METHODOLOGY

3.1  RESEARCH DESIGN                                                                     42

3.2  AREA OF THE STUDY     -                                                           42

3.3  POPULATION AND  SAMPLE SIZE  OF THE STUDY                42

3.5  METHOD OF DATA COLLECTION                                              43

3.6   VALIDITY  AND  RELIABILITY   RESEARCH INSTRUMENTS    43

3.7  DATA ANALYSIS  PROCEDURE                                                  44-45

CHAPTER FOUR

4.0  PRESENTATION  AND ANALYSIS  OF DATA

4.1  ANALYSIS  OF RESEARCH QUESTIONS     -

4.2  TESTING  OF HYPOTHESIS

4.3   DISCUSSION  OF FINDINGS    -

CHAPTER FIVE

5.0  SUMMARY, CONCLUSION  AND  RECOMMENDAIONS

REFERENCES 

APPENDIX