Underlying Dimensions of the Hindrances to the Application of Forensic Accounting Techniques in Nigeria

Abstract

The study identified the underlying factors that hinder the application of forensic accounting techniques in Nigeria. Data for the study were obtained from questionnaire administered on chief financial officers in Ministries, Departments and Agencies in 9 sampled States and the Federal Capital Territory, Abuja. The application of factor analysis statistical techniques collapsed the 23 measured variables into three factors. The factors were named ‘legal factor’, ‘educational factor’ and ‘political factor’ in that order of importance. It was concluded that these three factors constitute the major hindrances to the application of forensic accounting techniques for fraud prevention and detection in Nigeria. It is recommended that the legal system should be strengthened to be able to effectively handle fraud cases; educational and training institutions should embark on the training of forensic accountant; and the government should have the political will to prosecute offenders and institutionalize policies beyond what are on ground for the effective application of forensic accounting techniques in the country.