INVESTIGATING THE EFFECTIVENESS OF FORENSIC AUDITING IN FRAUD DETECTION AND PREVENTION IN GOVERNMENT ORGANISATIONS - THE TRADITIONAL AUDITING IN PERSPECTIVE

Abstract

Forensic auditing was very important in the detection and prevention of fraud in public sector in Nigeria. Haven considered the place forensic auditing played in the public sector, it became necessary to investigate the effectiveness of it in the detection and prevention of fraud in public sectors of Nigeria with the traditional auditing in perspective. Various literature reviews were conducted. The methodology of the research included the adoption of the positivism philosophy. .  The study design was descriptive survey. The researcher opted for describing the nature and the state of affairs as it set to archived. The methodology of this study included a population of 2,306. The categories of respondents were experts in forensic auditing. The purposive and simple random sampling methods were used to determine the sample size of 341. The source of data used for this study was primary. The instrument used for the data collection used was a self-administered questionnaire that was made up of both open-ended and close-ended questions. Face and content validity of the instruments was determined by experts, while Cronbach Alpha Technique was used to determine the reliability of the questionnaire, where a reliability coefficient of 0.891 was used. Face to face method of administration was used. Simple percentages, mean and standard deviation and ordinary least square (OLS) multiple regressions were used as methods of data analysis. Findings revealed that practice of forensic auditing and forensic auditing skills had significant effect on fraud detection and prevention in government organizations but the traditional auditing approach had an insignificant positive effect in detecting and preventing frauds. The research concluded that forensic auditing is effective in fraud detection and prevention, without necessary the traditional auditing approach. Recommended were that governments at various levels should ensure that traditional auditors should undergo training programmes on forensic auditing to improve their auditing skills and institutionalize the practice of forensic auditing system in all ministries, Departments and agencies for effective detection and prevention of fraud.