Forensic Accounting Techniques as Tools for Nigerian Practitioners

Abstract

Forensic accounting has emerged as a critical discipline in combating financial irregularities, fraud, and corruption. However, this paper examines forensic accounting techniques as tools for Nigerian Practitioners. The study adopts a qualitative approach, involving case studies and document analysis. The case study method provided a deep exploration of specific instances where forensic accounting techniques were successfully employed to uncover financial fraud in Nigeria; while the document analysis method involved a systematic review of existing literature, regulatory frameworks, and policies that govern forensic accounting in Nigeria. The case study examined public sector embezzlement case involving inflated contracts where over NGN 2 billion was misappropriated. The approach considered Data Collection, Data Mining, Benford's Law, Digital Forensics and Comparative Analysis as tool. IDEA (Interactive Data Extraction and Analysis) and ACL (Audit Command Language) was used for data mining and fraud detection. Another case study considered bank mismanagement case which involved a high-profile incident within a commercial bank in Nigeria. In this case the data were collated through analysis of bank statements, internal memos, and loan approval documentation, interviews conducted with whistleblowers, affected customers, and implicated bank employees while System Logs were reviewed base on digital transaction logs to identify unauthorized activities. The results for case 1 and case 2 showed that NGN 1.2 billion and NGN 200 million were recovered respectively and repayment agreements with some beneficiaries. On the whole, the findings underscored the need for enhanced internal controls, continuous monitoring, and capacity building to strengthen the financial sector against similar risks in the future.