Effect of Forensic Accounting Techniques on Fraud Detection by Professional Accounting Firms in Plateau State

Abstract

The study investigated the effect of forensic accounting techniques on fraud detection by professional accounting firms in Plateau State. A survey design was adopted for the study. The population of the study consisted of 6 accounting and auditing professional firms in Plateau State. Oral interview was used to ascertain the total number of staff from these firms totaling 203, whereby a sample size of 135 was determined using Taro Yamane formula. A total of 135 copies of questionnaire were administered on the selected respondents. However, 129 copies were retrieved. The study employed the use of structured questionnaire as method of data collection and the hypotheses were tested using multiple regression as method of data analysis. Findings shows that data mining technique had a positive and significant effect on fraud detection by Professional Accounting Firms in Plateau State; reviewing financial statement technique had a negative and significant effect on fraud detection by Professional Accounting Firms in Plateau State; analyzing accounting records techniques have positive and not significant effect on fraud detection by Professional Accounting Firms in Plateau State and Internal control charts have positive and significant effect on fraud detection by Professional Accounting Firms in Plateau State. The study recommended Professional Accounting Firms and other private organizations should select data mining software that integrates with existing accounting systems; Professional accounting firms should maintain the services of forensic accountants to review their financial statements and transactions at the end of the period of transactions; Professional accounting firms should employ the services of forensic accountants to help them unveil fraudulent records from their financial books and Firms should determine critical internal controls for financial reporting.