FORENSIC ACCOUNTING/AUDITING AND ANTI-CORRUPTION CRUSADE: WHAT RESPITE?

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BY

AISHA O. SALAUDEEN

ACCOUNTING DEPARTMENT,

UNIVERSITY OF ABUJA

Tel: +2348036515050

E-mail, [email protected]

and

YEKEEN ABDUL MALIAQ

BANKING AND FINANCE DEPARTMENT

Tel: +2348037770262

E-mail [email protected]

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ABSTRACT

This paper examines the concept of forensic Accounting/Auditing as well as the differences between traditional and forensic accounting/auditing against the backdrop of rising spate of fraud and corruption worldwide. The paper notes that while many advanced economies, notably USA, UK, Canada, Australia and India are well into the use of forensics in their financial reporting and investigation, the culture is noticeably absent in developing countries particularly Nigeria. The researchers opine that anti-corruption crusades could be made more efficient and effective, more objective and transparent as well as more cost efficient if the principles and tenets of forensic auditing are introduced into the legal and financial education as well as professional accounting auditing and financial studies in general. The researchers also recommend the wave of forensic auditing in anti-corruption crusades.

Key words: Forensic, corruption, fraud, Data mining, EFCC, whistle bowing

Corresponding Author.*

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Introduction

In the past fifty years or so now; the term corruption has assumed a somewhat palpable posture. It is no longer nebulous or amorphous but almost concrete. It is now easily identified as improper, inappropriate dubious and dishonest acts or actions which result or are aimed at deriving undue and unearned pecuniary or non pecuniary benefits using one’s official or political position and or influence. While income smoothing, big bath accounting and other smart and creative accounting techniques are not new in corporate nor public businesses and financial transactions; atrocious and outrageous financial under reporting, misrepresentation,