Forensic Accounting In Nigeria Essay

1133 Words5 Pages
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
Financial fraud has increased considerably over the years and it is likely to continue if not adequately dealt with. Fraud has eaten deep into all sectors of the economy and it is sometimes seen as a normal way of life. The costs of fraud to businesses and the public is always estimated as many crimes go unreported.
Farlex Financial Dictionary(2012), defines fraud as any attempt to deceive another for financial gain. According to Andrew Beattie, fraud started as far back as 300 B.C., where Hegestratos a Greek merchant who tried to deceive an insurance company and drowned trying to escape when his crew passengers caught him in the act. Another incidence of financial fraud was the collapse of Enron company. Enron was one of the biggest company of its time whose fall shook the company. The fall was
…show more content…
comm, 2002). Yet the level of awareness of forensic accounting is low even among Nigeria companies. The essence of this study is on how forensic accounting can be use in detecting and preventing financial fraud when fussed into conventional Nigeria business environment.

STATEMENT OF RESEARCH PROBLEM
Financial fraud can be broadly defined as an intentional act of deception involving financial transactions for purpose of personal gain( Bank Negara Malaysia). Due to the increase of financial fraud in Nigeria companies there is need for this fraud to be prevented to avoid its adverse consequence.
The impact of financial fraud in business organizations cannot be overemphasized. It has led many companies to liquidation and some to stagnation. It is against this landscape that the following questions will be raised:
Can forensic accounting minimize fraud in Nigeria companies?
Does forensic accounting increase the credibility of financial statements?
Should forensic accounting be encouraged in Nigeria?
OBJECTIVES OF THE STUDY
This study in specific terms, intends
Open Document