From Detection to Prevention: Examining the Associations Between Forensic Accounting Practices, Governance Quality, Transparency, Disclosure, and Accountants’ Perception of Financial Fraud Control
Aug 2026· Journal of Risk and Financial Management· Vol 19, pp. 645· 0 citations· 73 references
Abstract
Amid the massive digitization of financial flows, forensic accounting is emerging as a strategic lever to strengthen the prevention, detection, and control of financial irregularities. This study aims to examine the associations between forensic accounting practices and perceived financial fraud control, and to analyze the mediating roles of corporate governance quality, transparency, and disclosure. A quantitative survey was conducted with 325 audit, control, and accounting professionals. The data were analyzed using structural equation modeling to assess the direct and indirect relationships. Fraud prevention mechanisms have the strongest correlation with financial fraud control (β = 0.310; p < 0.001), followed by forensic data analysis (β = 0.270; p < 0.001), litigation support (β = 0.084), and fraud detection techniques. Forensic data analysis is associated with the quality of corporate governance (β = 0.480; p < 0.001), while transparency and disclosure practices are the most important determinants of perceived financial fraud control (β = 0.463; p < 0.001), followed by governance quality (β = 0.165). Mediation analyses show that corporate governance and transparency primarily amplify the relationship between prevention mechanisms and forensic data analysis, whereas the mediating effects of detection techniques are not significant. Financial fraud control is strongly associated with an integrated approach that combines prevention, analytical capabilities, quality governance, and transparency, rather than with detection activities alone. The findings provide an explanatory model that highlights the organizational mechanisms by which forensic accounting practices strengthen governance and control over financial fraud.
Purpose: This study investigated the effect of forensic accounting techniques on fraud control in the Nigerian public sector and examined whether financial inclusion strengthens the relationship between forensic accounting techniques and fraud control. Specifically, the study evaluated the influence of data mining, ratio analysis, trend analysis, and the net worth method on fraud control while assessing the moderating role of financial inclusion.
Methodology: A quantitative survey research design was adopted. Data were collected from 296 respondents drawn from federal and state Ministries, Departments, and Agencies (MDAs) in Calabar, Cross River State. A structured questionnaire was used for data collection, while Structural Equation Modelling (SEM) was employed for data analysis.
Results and Conclusion: The findings revealed that data mining and trend analysis have significant positive effects on fraud control, indicating their effectiveness in identifying irregularities and fraudulent practices in the public sector. Conversely, ratio analysis and the net worth method showed significant negative relationships with fraud control, suggesting possible challenges in their application. The study further found that financial inclusion significantly moderates the relationship between forensic accounting techniques and fraud control by enhancing transparency, accountability, and financial traceability. These findings provide empirical support for the Vulnerable Group Theory of financial inclusion.
Implication of Findings: The study contributes to forensic accounting literature by providing evidence from the Nigerian public sector and highlighting the importance of financial inclusion in strengthening fraud control. It recommends the institutionalization of forensic accounting practices and the expansion of financial inclusion initiatives to improve fraud detection and prevention.
J. O. Oboh, S. Andortan, Francis Ubi Ntum et al.· FUDMA Journal of Accounting...· 0 citations
Fraud in public institutions, especially in financial management, remains a critical issue that
undermines transparency and accountability, leading to significant financial losses and eroded
public trust. The main objective of this research was to evaluate the relationship between these
forensic accounting techniques and fraud detection in the public sector, specifically focusing
on the Office of the Accountant General of the Federation (OAGF) and similar institutions.
This study investigates the effectiveness of forensic accounting techniques, particularly data
mining and ratio analysis, in detecting and preventing fraud within the Nigerian public sector.
A survey research design was employed, using a well-structured closed-ended questionnaire
distributed to 200 staff members from the Budget and Accounts office within the OAGF. The
data was collected from both primary and secondary sources and analyzed using simple
percentages and T-test statistics to test the hypotheses. The study found a significant positive
relationship between both data mining and ratio analysis with fraud detection. Specifically, the
t-value for data mining was 10.643 (p < .0001), and the t-value for ratio analysis was 13.666
(p < .0000), indicating that both techniques significantly contribute to fraud detection. Based
on these findings, the study recommends enhancing training and capacity-building for public
sector employees in forensic accounting techniques, as well as the implementation of
comprehensive fraud detection systems that integrate forensic tools with internal controls.
These recommendations aim to improve fraud detection, increase transparency, and foster
greater public trust in Nigeria’s public financial management. By adopting these strategies,
public institutions can strengthen their financial oversight and significantly reduce the risks of
fraud.
Inyada, Sunday Joseph· Journal of Accounting and Fi...· 0 citations
This study examined the effect of forensic accounting techniques on fraud reduction in
Nigerian public sector institutions between 2015 and 2025. Despite institutional reforms by
agencies such as the Economic and Financial Crimes Commission (EFCC) and the
Independent Corrupt Practices Commission (ICPC), fraud remains a major challenge in
Nigeria’s public financial management system. Drawing on panel data from selected
Ministries, Departments, and Agencies (MDAs), the study specifies a fixed effects regression
model using fraud reduction index (FRI) as the dependent variable and forensic accounting
techniques investigative auditing, data analytics, computer-assisted audit techniques,
litigation support, and whistleblowing effectiveness as explanatory variables. Findings
revealed that all forensic accounting variables significantly enhance fraud reduction, with
whistleblowing effectiveness and data analytics exhibiting the strongest effects. The study
concluded that forensic accounting techniques are critical instruments for improving
transparency, accountability, and fraud control in Nigerian public institutions. Policy
implications emphasized digital audit transformation and stronger whistleblower protection
frameworks.
Joyce Akaninyene Bassey· Journal of Accounting and Fi...· 0 citations
Fraud remains one of the most significant threats to organizational performance, accountability, and long-term sustainability across both public and private sectors. Despite considerable investments in internal control systems, organizations continue to experience financial losses resulting from fraudulent activities such as financial statement manipulation, procurement fraud, cybercrime, and asset misappropriation. In response to these challenges, internal auditing has evolved beyond its traditional compliance role to become a strategic governance mechanism for risk management and fraud prevention. This paper reviews existing theoretical and empirical literature on the relationship between internal audit quality and fraud detection effectiveness in the manufacturing, banking, and oil and gas sectors. Drawing on Agency Theory, Fraud Triangle Theory, and Institutional Theory, the study examines how factors such as auditor independence, professional competence, technological capability, and regulatory compliance influence organizations' ability to detect and prevent fraud. The review further highlights how industry-specific characteristics shape the effectiveness of internal audit functions and fraud management practices. The findings indicate that organizations with strong internal audit systems are generally more successful in identifying control weaknesses, detecting fraudulent activities, and enhancing overall governance performance. While the banking sector demonstrates relatively higher fraud detection effectiveness due to advanced technology and strict regulatory oversight, the oil and gas sector faces persistent governance challenges despite significant audit investments. Manufacturing firms, on the other hand, continue to grapple with operational vulnerabilities associated with inventory management and procurement processes. By providing a comparative synthesis across multiple sectors, this study extends existing literature that has largely focused on single-industry investigations. The paper concludes that strengthening auditor independence, embracing technological innovation, and investing in continuous professional development are essential for improving fraud detection effectiveness and promoting organizational accountability.
Adesina Olugoke Oladipupo, Ajabor Azuka Elvis· JALINGO JOURNAL OF SOCIAL AN...· 0 citations
The purpose of this research is to create a thorough conceptual framework for comprehending and dealing with accounting and auditing fraud. The study intends to uncover important theme areas that support fraud prevention, detection and mitigation in different disciplines by synthesizing recent academic research.
A systematic literature review was conducted using the SCOPUS database, covering research articles from 2010 to 2025. A total of 83 open access articles related to accounting and auditing fraud were analyzed. The review focused on key categories including author, year, main contribution, field, research method and analysis, and was thematically structured around technological advancements, governance mechanisms and ethical dimensions.
The review reveals that technological innovations such as machine learning, big data analytics and blockchain significantly enhance fraud detection and audit quality. However, their effectiveness is contingent upon strong corporate governance and ethical standards. Board oversight, auditor independence and forensic auditing play vital roles in mitigating fraud risks. In addition, ethical behavior, psychological well-being and auditor characteristics are critical human factors that influence the effectiveness of audit practices.
The review is limited to open-access articles within the SCOPUS database and may not capture all relevant studies outside this scope. Future research could expand to include other databases or non-open-access literature to broaden the understanding of the topic.
The findings emphasize the need for organizations to integrate advanced technological tools with robust governance frameworks and to foster ethical cultures. Auditor training should include technological competencies and psychological awareness to enhance audit effectiveness and fraud detection.
This study offers a multidimensional conceptual framework that integrates technological, organizational and behavioral factors, providing comprehensive insights into the mechanisms driving audit quality and fraud detection. It contributes to the academic discourse and offers practical guidance for practitioners and policymakers aiming to improve auditing standards in the digital era.
Arbana Sahiti Ramushi, Lum Çollaku· International Journal of Eth...· 0 citations
The evolving fraud dynamics in the public sector of Nigeria, despite existing control mechanisms, motivate the investigation of real-time internal control practices to mitigate fraud. This study examines how authorisation, biometric authentication, periodic checks, and information communication and technology oversight structures contribute to mitigating fraud within the Nigerian public sector. The study adopts a survey design and data were collected through structured questionnaires administered to 163 purposively selected staff members of Ekiti State Internal Revenue Service. Descriptive and inferential statistics were employed to analyse responses, while a modified econometric model was used to evaluate the impact of the variables on fraud prevention outcomes. The results indicate that real-time authorisation effectively prevents unauthorised activities, enhances compliance, and strengthens fraud prevention. Similarly, periodic checks promote instant detection of irregularities, ensuring continuous oversight and improved fraud prevention. While biometric activities like fingerprint scanning, facial recognition, and iris detection are seen as beneficial, their direct impact on strengthening accountability and traceability in the studied context was not evident. The study concludes that well-designed internal-control policies and procedures are crucial in deterring financial misconduct in the Nigerian public sector. Recommendations include implementing more stringent authorisation layers and tightening biometric verification to complement internal control measures.
Unknown authors· International Review of Mana...· 0 citations
We use cookies to run the site and, with your consent, for analytics and to show ads.
See our Cookie Policy.
