Fraud Prevention Strategies: An Integrative Approach on the Role of Forensic Accounting

Abstract

This study examined the role that forensic accounting play in aiding the success of fraud prevention strategies in combating frauds at both corporate and national levels. The study adopted the exploratory research design methodology involving extensive review of published articles, periodicals and other materials relevant to the subject matter. The study found that while the use and deployment of forensic accounting tools and techniques have made appreciable progress in the developed world, its appreciation and usage in emerging economies is still at the embryonic stage due to lack of political will, poor ethical tone set by management and dearth of skilled forensic accounting professionals. It therefore recommended that to ensure sustainable success of fraud prevention strategies, management of both public sector and corporate entities should demonstrate the needed political will and set the right ethical tone at the top through their actions and activities. Similarly, efforts should be made to continually upskill anti-fraud staffs (internal audit, forensic accountants, forensic investigators) through trainings and awareness programs on the latest fraud prevention methodologies. Also, that in view of the rising cases of cybercrimes, nation states should urgently consider the signing and implementation of legal treaties and frameworks to combat the scourge.

The Role of Forensic Accounting in the Detection and Fraud Prevention: A Systematic Literature Review

“…It therefore recommends establishing a dedicated forensic department staffed by qualified personnel at each financial institution. Amahalu, Obian and Ezechukwu (2017) in Olubunmi (2022), in their study, focuses on building a relationship between the use of forensic accounting techniques and fraud detection in selected depository banks. The results showed that the use of financial accounting techniques had a positive impact on the prevention and detection of financial fraud at selected financial institutions.…”

Modelling Proactive Fraud Risk Management Practices in South Africa’s Non-governmental Organisations

“…This article thus empirically investigated the role of forensic auditing techniques in responding to the risks of financial statement fraud among selected NGOs in the eThekwini region, focusing on the Durban central business district, (CBD) where many of the most prominent NGOs are located, to test whether or not proactive forensic audit techniques significantly respond to the risks of financial statement fraud among NGOs in the eThekwini region. Ogunode and Dada (2022) investigated the similarities between forensic auditing and forensic accounting. Descriptive and inferential statistics were employed, and ANOVA (Analysis of Variance) was used to analyse the data, compare the level of agreement in the responses to the questionnaire and test the hypotheses.…”