INTEGRITY OF FINANCIAL STATEMENTS AND FORENSIC ACCOUNTING TECHNIQUES

Godwin Emmanuel, Oyedokun (), Enyi Patrick, Enyi and Samuel Olajide, Dada
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Godwin Emmanuel, Oyedokun: Department of Accounting School of Management Sciences, Postal: Babcock University, Ilishan- Remo, Ogun State, https://www.afarng.org/jfafi/
Enyi Patrick, Enyi: Department of Accounting School of Management Sciences, Postal: Babcock University, Ilishan- Remo, Ogun State, https://www.afarng.org/jfafi/
Samuel Olajide, Dada: Department of Accounting School of Management Sciences, Postal: Babcock University, Ilishan- Remo, Ogun State, https://www.afarng.org/jfafi/

Journal of Forensic Accounting & Fraud Investigation (JFAFI), 2019, vol. 4, issue 1, 1-28

Abstract: This study examined the relevance of forensic accounting techniques in ensuring the integrity of the financial statements. Stakeholders who members of recognised professional accountancy bodies in Nigeria were requested to answer research questions. This study adopts survey research method with the use of primary data and purposive random sampling techniques. The sample size was calculated with the formula by Krejceie and Morgan (1970). 350 copies of questionnaires were administered, and 321 questionnaires were returned, representing 92% of the entire questionnaire. Nominal scale method was used in the demographic section while Likert scale was used in other sections of the questionnaire. Hypotheses were formulated, tested, and analysed using multiple regression analysis. It was found that forensic accounting techniques “FAT” (FPDDS, FAIIS, LMAS, and CARDR) have positive influence on the integrity of financial statements (IFS) of business organisations, as evidenced from the individual level of significance of 0.006, 0.045, 0.000, and 0.047 which are less than the 5% acceptable level of significance and the coefficient of determination of the main model of 0.23 meaning that about 23% variation of the IFS is attributable to FAT while the remaining 77% change in the IFS can be attributed to other factors not covered in the model. It was also found that the inclusion of forensic accounting techniques will strengthen the activities of internal control functions. This is also evidenced by the sign and size of the coefficients, that is β are +0.203, +0.256, +0.270, and 4 - 7 +0.134 respectively > 0. In conclusion, this study established that forensic accounting techniques are; fraud prevention, detection and deterrence skills, forensic audit, forensic investigation, and forensic interviewing skills, litigation, mediation and arbitration skills, and computer-assisted reviews and document reviews. The study recommended that business organisations should consider setting up forensic accounting unit within an organisation to lend credence to the integrity of financial statement of business organisations.

Keywords: Integrity; Financial Statement; Fraud Examination; Forensic Accounting; Forensic Accounting Techniques (search for similar items in EconPapers)
Date: 2019
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Journal of Forensic Accounting & Fraud Investigation (JFAFI) is currently edited by Godwin Emmanuel Oyedokun, Muhammad Akaro Mainoma and Suleiman A. S. Aruwa

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