Mitigating Corruption Using Forensic Accounting Investigation Techniques
The Watchdog Perspectives
Corruption has been one of the everyday concern for many nations. The effect of corruption has been very devastating in countries across the globe including the developed nations. However, reports indicate that the developing nations are more susceptible to corruption and particularly within the public sector. Nigeria is an example of a developing facing the problem of corruption within the enclave of its public-sector services. Essentially, public sector service performances in Nigeria is inseparable from corruption in one form or the other. Over the years, successive have been making efforts to address the issue of corruption in the country. These efforts eventually saw the emergence of the setting up of two prominent anti-corruption agencies. Still with these agencies corruption persists in the country. Part of the problem identified is lack of competent investigative machinery to appropriately dig into the root of all corruption cases and to prosecute such cases in the court of justice. It follows that the forensic accounting investigation technique is identified as the best option and the anti-corruption agencies have adopted the technique in their investigation. This study, therefore, using qualitative research methodology based on in-depth interviews with experts from these agencies, examines the efficacy of the technique. Data collected were manually coded and analyzed using thematic analysis. Through rigorous within the case and cross-case analyses of the 24 interviews conducted, two themes emerged as the findings to the study. Forensic accounting is considered an appropriate technique for adequately investigating public sector corruption and at the same is suitable for court purposes in the prosecution and conviction of corrupt officers. Finally, the study recognizes the need to enhance the capacity of the investigators through training and retraining as well as through the provision of the latest equipment.
Adegbie, F. F., & Fakile, A. S. (2012). Economic and Financial Crime in Nigeria: Forensic Accounting as Antidote. British Journal of Arts and Social Sciences, 6(1), 37–50.
Agbiboa, D. E. (2012). Between Corruption and Development: The Political Economy of State Robbery in Nigeria. Journal of Business Ethics, 108(3), 325–346. https://doi.org/10.1007/s10551-011-1093-5
Agbiboa, D. E. (2015). Protectors or Predators? The Embedded Problem of Police Corruption and Deviance in Nigeria. Administration & Society, 47(3), 244–281. https://doi.org/10.1177/0095399713513142
Albrecht, C., Holland, D., Malagueno, R., Dolan, S., & Tzafrir, S. (2015). The Role of Power in Financial Statement Fraud Schemes. Journal of Business Ethics, 131(4), 803-813. https://doi.org/10.1007/s10551-013-2019-1
Albrecht, S. W., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2012). Fraud Examination. (Jack W. Calhon, Ed.), South-Western Cengage Learning (Fourth Edition). Mason, OH: South- Westerb Cengage Learning. https://doi.org/10.1017/CBO9781107415324.004
Azeez, A. (2011). Endangering Good Governance for Sustainable Democracy: The Continuing Struggle Against Corruption in Nigeria. Journal in Research, Peace, Gender and Development, 1(11), 307–314.
Bardhan, P. (1997). Corruption and Development: A Review of Issues. Journal of Economic Literature, 35(3), 1320–1346.
Berkovich, I. (2015). The Corrupted Industry and the “Wagon-Wheel Effect”: A Cross-Country Exploration of the Effect of Government Corruption on Public Service Effectiveness. Administration & Society, 1–21. https://doi.org/10.1177/0095399715607287
Berlinski, B. C. (1997). The Dark Figure of Corruption. Policy Review, 155(July 2009), 71–82.
Bhasin, M. (2013). An Empirical Investigation of the Relevant Skills of Forensic Accountants. Journal of Education for Business, 1(2), 11–52. https://doi.org/10.3200/JOEB.83.6.331-338
Bhasin, M., & Digabriele, J. A. (2008). An Empirical Investigation of the Relevant Skills of Forensic Accountants. Journal of Education for Business, 83(6), 331–338. https://doi.org/10.3200/JOEB.83.6.331-338
Bhasin, M. L. (2016). Contribution of Forensic Accounting to Corporate Governance: An Exploratory Study of an Asian Country. International Business Management, 10(4). https://doi.org/10.3923/ibm.2016.479.492
Breit, E., Thomas, T. L., & Olaison, L. (2015). Critiquing Corruption: A Turn to Theory. Ephera Thoery & Politics in Organization, 15(2), 319–336.
Bressler, L. (2012). The Role of Forensic Accountants in Fraud Investigations: Importance of Attorney and Judge’s Perceptions. Journal of Finance and Accountancy, 9, 1–9.
Bulbul, H. I., Yavuzcan, H. G., & Ozel, M. (2013). Digital Forensics: An Analytical Crime Scene Procedure Model (ACSPM). Forensic Science International, 233(1–3), 244–256. https://doi.org/10.1016/j.forsciint.2013.09.007
Carnes, K. C., & Gierlasinski, N. J. (2001). Forensic Accounting Skills: Will Supply Finally Catch Up to Demand? Managerial Auditing Journal, 16(6), 378–382. https://doi.org/10.1108/02686900110395514
Chi-chi, O. A., & Ebimobowei, A. (2012). Fraudulent Activities and Forensic Accounting Services of Banks in Port Harcourt, Nigeria. Asian Journal of Business Management, 4(2), 124–129.
Colazingari, S., & Rose-Ackerman, S. (1998). Corruption in a Paternalistic Democracy: Lessons from Italy for Latin America. Political Science Quarterly, 113(3), 447–470. Retrieved from http://onlinelibrary.wiley.com/doi/10.2307/2658076/abstract
Creswell, J. W. (2014). Educational Research: Planning, Conducting and Evaluating Quantitative and Qualitatitive Research (Fourth Edi). Harlow: Pearson Education Limited.
Curtis, G. E. (2008). Legal and Regulatory Environments and Ethics: Essential Components of a Fraud and Forensic Accounting Curriculum. Issues in Accounting Education, 23(4), 535–543. https://doi.org/10.2308/iace.2008.23.4.535
DiGabriele, J. A., & Huber, W. D. (2015). Topics and Methods in Forensic Accounting Research. Accounting Research Journal, 28(1), 98–114.
Dong, R. (2011). Research on Legal Procedural Functions of Forensic Accounting. Energy Procedia, 5, 2147–2151. https://doi.org/10.1016/j.egypro.2011.03.371
Dungan, J., Waytz, A., & Young, L. (2014). Corruption in the Context of Moral Trade-offs. Journal of Interdisciplinary Economics, 26(1–2), 97–118. https://doi.org/10.1177/0260107914540832
Egwemi, V. (2012). Corruption and Corrupt Practices in Nigeria: An Agenda for Taming the Monster. Journal of Sustainable Development in Africa, 14(3), 72–85.
Emeh, Y., & Obi, J. O. (2013). An Emperical Analysis of Forensic Accounting and Finacial Fraud in Nigeria. African Journal of Social Sciences, 3(4), 112–121.
Enofe, a O., Okpako, P. O., & Atube, E. N. (2013). The Impact of Forensic Accounting on Fraud Detection. European Journal of Business and Management, 5(26), 61–73.
Gbegi, D. ., & Okoye, E. I. (2013). Forensic Accounting : A Tool for Fraud Detection and Prevention in the Public Sector (A Study of Selected Ministries in Kogi State). International Journal of Academic Research in Business and Social Sciences, 3(3), 1–19.
Graycar, A., & Sidebottom, A. (2012). Corruption and Control: A Corruption Reduction Approach. Journal of Financial Crime, 19(4), 384–399.
Hendi, Y. P. (2013). Better, Faster, Smarter: Developing a Blueprint for Creating Forensic Accountants. Journal of Money Laundering Control, 16(4), 353–378.
Ibietan, J. (2013). Corruption and Public Accountability in the Nigerian Public Sector: Interrogating the Omission. European Journal of Business and Management, 5(15), 41–49.
Ijewereme, O. B. (2015). Anatomy of Corruption in the Nigerian Public Sector: Theoretical Perspectives and Some Empirical Explanations. SAGE Open, 5(2), 1–16. https://doi.org/10.1177/2158244015581188
Inokoba, P. K., & Ibegu, W. T. (2011). Economic and Financial Crime Commission (EFCC) and Political Corruption: Implication for the Consolidation of Democracy in Nigeria. Anthropologist, 13(4), 283–291.
Italia, M. (2012). The Multi-Disciplined Skills Required of Forensic Accountants. Journal of Modern Accounting and Auditing, 8(3), 365–373.
John Taylor. (2011). Forensic Accounting (1st ed.). London: Pearson Education Limited.
Kasum, A. S. B. (2009). The Relevance of Forensic Accounting to Financial Crimes in Private and Public Sectors of Third World Economies: A Study From Nigeria. Proceedings of the 1st International Conference on Governance Fraud Ethics and Social Responsibility, June 11-13, 2009. Available at SSRN: https://ssrn.com/abstract=1384242
King, N., & Horrocks, C. (2010). Interviews in Qualitatitive Research (1st ed.). Los Angeles, Sage Publications Limited.
Malgwi, C. a. (2004). Fraud as Economic Terrorism: The Efficacy of the Nigerian Economic and Financial Crimes Commission. Journal of Financial Crime, 12(2), 144–164. https://doi.org/10.1108/13590790510624981
Mauro, P. (1995). Corruption and Growth. The Quarterly Journal of Economics, 110(3), 681–712. https://doi.org/10.1177/03063127067078012
Mauro, P. (1998). Corruption : Causes, Consequences, and Agenda for Further Research. Finance and Development, 35(1), 11–14.
Mbaku, J. M. (2008). Corruption Cleanups in Africa: Lessons from Public Choice Theory. Journal of Asian and African Studies, 43(4), 427–456. https://doi.org/10.1177/0021909608091975
Méndez, F., & Sepúlveda, F. (2006). Corruption, Growth and Political Regimes: Cross Country Evidence. European Journal of Political Economy, 22(1), 82–98. https://doi.org/10.1016/j.ejpoleco.2005.04.005
Merriam, S. B. (2009). Qualitative Research: A Guide to Design and Implementation (2nd ed.). San Fransisco: Jossey-Bass.
Modugu, K. P., & Anyaduba, J. O. (2013). Forensic Accounting and Financial Fraud in Nigeria : An Empirical Approach. International Journal of Business and Social Science, 4(7), 281–289.
Mohammed, U. (2013). Corruption in Nigeria: A Challenge to Sustainable Development in the Fourth Republic. European Scientific Journal, 9(4), 118–137.
Montinola, G. R., & Jackman, R. W. (2002). Sources of Corruption: A Cross-Country Study. British Journal of Political Science, 32(01), 147–170. https://doi.org/10.1017/S0007123402000066
Morrow, S. L. (2005). Quality and Trustworthiness in Qualitative Research in Counseling Psychology. Journal of Counseling Psychology, 52(2), 250–260. https://doi.org/10.1037/0022-0126.96.36.199
Neu, D., Everett, J., Rahaman, A. S., & Martinez, D. (2013). Accounting and networks of corruption. Accounting, Organizations and Society, 38(6–7), 505–524. https://doi.org/10.1016/j.aos.2012.01.003
Nye, J. S. (1967). Corruption and Political Development : A Cost-Benefit Analysis. American Political Science Association, 61(2), 417–427.
Obuah, E. (2010). Combating Corruption in a “Failed” State: The Nigerian Economic and Financial Crimes Commission. Journal of Sustainable Development in Africa, 12(1), 27–53.
Ochulor, C., Metuonu, I., & Asuo, O. (2011). Corruption in Contemporary Nigeria: The Way Out. American Journal of Social and Management Sciences, 2(1), 91–99. https://doi.org/10.5251/ajsms.2011.2.1.91.99
Ogbeidi, M. M. (2012). Political Leadership and Corruption in Nigeria Since 1960 : A Socio-Economic Analysis. Journal of Nigeria Studies, 1(2), 1–25.
Omar, N. B., Mohamed, N., Jomitin, B., & Haron, R. (2013). The Relevance of Forensic Accounting in Public Sector (A study of Selected Government Agencies in Klang Valley). International Conference of Financial Criminology, (28–29 May), 1–14.
Osoba, S.(1996). Corruption in Nigeria: Historical Perspective. Review of African Political Economy, 69, 371–386.
Othman, Z., Shafie, R., Hamid, F. Z. A., & Abdul Hamid, F. Z. (2014). Corruption – Why do they do it? Procedia - Social and Behavioral Sciences, 164(August), 248–257. https://doi.org/10.1016/j.sbspro.2014.11.074
Rezaee, Z., & Burton, E. J. (1997). Forensic Accounting Education: Insights from Academicians and Certified Fraud Examiner Practitioners. Managerial Auditing Journal, 12(9), 479–489. https://doi.org/10.1108/02686909710185206
Rezaee, Z., Lander, G. H., & Reinstein, A. (1992). Forensic Accounting: Challenges and Opportunities. The Ohio CPA Journal, 51(5), 33–37.
Richard G. Brody Robert Luo. (2006). Fraud and White-Collar Crime: A Chinese Perspective. Cross Cultural Management: An International Journal, 16(3), 317–326.
Robert K. Yin. (2011). Qualitative Research from Start to Finish. New York, London: The Guilford Press.
Sadiq, M., & Abdullahi, M. (2013). Corruption as the Bane of Nigeria’s Development. International Journal of Economic Development Research and Investment, 4(1), 83–93.
Singleton, T. W., & Singleton, A. J. (2010). Fraud Auditing and Forensic Accounting (3rd ed.). New Jersey: John Wiley & Sons.
Suleiman, N., & Othman, Z. (2016). Forensic Accounting Investigation for Fighting Public Sector Corruption in Nigeria: A Conceptual Paper. Proceedings of the Qualitative Research Conference (QRC) 2016, (May), 194–202. Retrieved from http://qualitative-research-conference.com/download/proceedings-2016/63%20naziru%20194-202.pdf
Suleiman, N., & Othman, Z. (2017). Corruption Typology: A Review of Literature, 16(2), 102–108. https://doi.org/10.17265/1537-1506/2017.02.004
Suleiman, N., Othman, Z., & Ahmi, A. (2017). Corruption: A Combat Without Bullet, The Nigerian Economic and Financial Crimes Commission’s (EFCC) Perspective. Asian Journal of Multidisciplinary Studies, 5(7), 200–210.
Tanaka, S. (2001). Corruption in Education Sector Development: A Suggestion for Anticipatory Strategy. International Journal of Educational Management, 15(4), 158–166. https://doi.org/10.1108/09513540110394384
Tanzi, V. (1998). Corruption around the World: Causes, Consequences, Scope, and Cures. IMF Staff Papers, 45(4), 559–595.
TI. (2013). Corruption Perceptions Index 2013. Transparency International. Berlin.
TI. (2014). Corruption Perceptions Index 2014. Transparency International. Berlin.
TI. (2015). Corruption Perception Index 2015. Transparency International. Berlin.
Wells, J. T., & Hymes, L. (2012). Bribery and Corruption Case Book.
Wolosky, H. (2004). Forensic Accounting to the Forefront. The Practical Accountant, February, 23–28. Retrieved from http://marriottschool.net/teacher/Acc550/W2.doc
Yaru, M. A. (2009). Economic Perspective of Corruption in the Public Sector: A Theoretical Explanation and Lessons for Nigeria. Ilorin Journal of Business and Social Sciences, 13(2), 143-153
Copyright (c) 2018 Indian-Pacific Journal of Accounting and Finance
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright of all articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) belongs to their respective authors. Site users are permitted to download and print the articles for personal use. Further reproduction and/or distribution is not permitted, except for brief excerpts or quotations intended for inclusion in some other original works. In this case, proper attribution must be made to the author/copyright holder, and the place of publication must be acknowledged. Altering, editing or otherwise modifying the content of information obtained from the Indian Pacific Journal of Accounting and Finance (IPJAF) is a breach of copyright.
While you retain the copyright of your original material, by publishing in the Indian Pacific Journal of Accounting and Finance (IPJAF) , you will have agreed to the following contractual terms:
- The article is the original work of the stated author(s).
- The work has not been published previously.
- If the Article contains copyright material owned by others, written permission has been obtained from the copyright owner(s) to republish such material in any print or electronic medium and that you have included appropriate acknowledgement of such rights in the Article.
- The author agrees to grant a non-exclusive license to the Indian Pacific Journal of Accounting and Finance (IPJAF) to communicate the work to the public.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may use the article for publicity purposes.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may publish the article on third-party sites.
- Any subsequent publication of the article by the authors will carry the acknowledgement: First published in the Indian Pacific Journal of Accounting and Finance (IPJAF) [http://ipjaf.omjpalpha.com]
The Indian Pacific Journal of Accounting and Finance (IPJAF) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.