Forensic accounting techniques and fraud control in the Nigerian public sector: The moderating role of financial inclusion
DOI:
https://doi.org/10.33003/fujafr-2026.v4i3.381.1-17Keywords:
Data Mining, Ratio Analysis, Trend Analysis, Net worth MethodAbstract
Purpose: This study investigated the effect of forensic accounting techniques on fraud control in the Nigerian public sector and examined whether financial inclusion strengthens the relationship between forensic accounting techniques and fraud control. Specifically, the study evaluated the influence of data mining, ratio analysis, trend analysis, and the net worth method on fraud control while assessing the moderating role of financial inclusion.
Methodology: A quantitative survey research design was adopted. Data were collected from 296 respondents drawn from federal and state Ministries, Departments, and Agencies (MDAs) in Calabar, Cross River State. A structured questionnaire was used for data collection, while Structural Equation Modelling (SEM) was employed for data analysis.
Results and Conclusion: The findings revealed that data mining and trend analysis have significant positive effects on fraud control, indicating their effectiveness in identifying irregularities and fraudulent practices in the public sector. Conversely, ratio analysis and the net worth method showed significant negative relationships with fraud control, suggesting possible challenges in their application. The study further found that financial inclusion significantly moderates the relationship between forensic accounting techniques and fraud control by enhancing transparency, accountability, and financial traceability. These findings provide empirical support for the Vulnerable Group Theory of financial inclusion.
Implication of Findings: The study contributes to forensic accounting literature by providing evidence from the Nigerian public sector and highlighting the importance of financial inclusion in strengthening fraud control. It recommends the institutionalization of forensic accounting practices and the expansion of financial inclusion initiatives to improve fraud detection and prevention.
References
Abdallah, A., Maarof, M. A., & Zainal, A. (2016). Fraud detection system: A survey. Journal of Network and Computer Applications, 68, 90–113.
Abdullahi, R., & Mansor, N. (2018). Fraud triangle theory and fraud diamond theory: Understanding the convergent and divergent for future research. International Journal of Academic Research in Accounting, Finance and Management Sciences, 5(4), 38–45.
Adebisi, J. F., & Gbegi, D. O. (2015). The role of forensic accounting in fraud detection and prevention in the Nigerian public sector. International Journal of Economics, Commerce and Management, 3(4), 1–13.
Agyei-Mensah, D. B. K. (2015). The determinants of financial ratio disclosures and quality: Evidence from an emerging market. International Journal of Accounting and Financial Reporting, 5(1), 188–211.
Akhidime, A. E., & Uagbale-Ekatah, R. E. (2014). The growing relevance of forensic accounting as a tool for combating fraud and corruption: Nigerian experience. Research Journal of Finance and Accounting, 5(2), 71–77.
Allen, F., Demirgüç-Kunt, A., Klapper, L., & Martinez Peria, M. S. (2016). The foundations of financial inclusion: Understanding ownership and use of formal accounts. Journal of Financial Intermediation, 27, 1–30.
Ariyo-Edu, A. A., & Woli-Jimoh, I. A. (2024). Forensic accounting and public sector fraud in Kwara State, Nigeria. FUOYE Journal of Accounting and Management, 7(1), 251–272.
Barabesi, L., Cerasa, A., Cerioli, A., & Perrotta, D. (2021). On characterizations and tests of Benford’s law. Journal of the American Statistical Association, 117(540), 1887–1903.
BBC News. (2024, January 8). World Africa report. https://www.bbc.com/news/world-africa-67914673
BBC News. (2024, July 26). World Africa report. https://www.bbc.com/news/world-africa-66273223
Bhandari, B. S. (2018). Life insurance, social security and financial inclusion. Bimaquest, 18(2), 1–16.
Botha, A. E. (2009). The net worth method as a technique to quantify income during investigation of financial crime (Master’s thesis). University of South Africa.
Burzinji, Z. A. Q., Yusoff, W. S., Rosbi, M. S. B. M., Salleh, M. F. M., & Abdullah, A. H. (2022). The effect of forensic accounting on fraud prevention: The moderating role of internal control effectiveness. International Journal of Economics, Commerce and Management, 10(1), 213–230.
Cámara, N., & Tuesta, D. (2014). Measuring financial inclusion: A multidimensional index (Working Paper No. 14/26). BBVA Research.
Central Bank of Nigeria. (2015). Renewed vigilance to prohibit illicit financial flows in Nigeria’s banking system. CBN.
Demirgüç-Kunt, A., Klapper, L., & Singer, D. (2013). Financial inclusion and legal discrimination against women: Evidence from developing countries. World Bank.
Eghe-Ikhurhe, G. O., Roni, N. N., & Bonsu, M. O. A. (2024). Forensic accounting in fraud detection and prevention: A qualitative investigation of microfinance institutions. International Journal of Management, Economics and Social Sciences, 13(3–4), 116–133.
Enyi, R. (2009). Fraudulent activities in manufacturing processes. International Journal of Business and Social Science, 4(7), 289–293.
Ewa, U. E. (2022). Forensic accounting and fraud management in Nigeria. Journal of Accounting, Business and Finance Research, 14(1), 19–29.
Flowerday, S., & Von Solms, R. (2005). Real-time information integrity as part of a holistic information security approach. Computers & Security, 24(8), 604–613.
Garba, A. (2024). Impact of forensic accounting on fraud detection in Nigerian deposit money banks. Journal of Advance Research in Business, Management and Accounting, 10(2), 16–30.
Gbegi, D. O., & Adebisi, J. F. (2014). The new fraud diamond model: How can it help forensic accountants in fraud investigation in Nigeria? European Journal of Accounting, Auditing and Finance Research, 1(4), 129–138.
Ghosh, S., & Vinod, D. (2017). What constrains financial inclusion for women? Evidence from Indian micro data. World Development, 92, 60–81.
Hannig, A., & Jansen, S. (2010). Financial inclusion and financial stability: Current policy issues. Asian Development Bank Institute.
Igwe, U. (2021). Tracking illicit financial flows could support Nigeria’s post-pandemic recovery.
Izedomin, F. I., & Mgbame, C. O. (2011). Curbing financial frauds in Nigeria: A case for forensic accounting. African Journal of Humanities and Society, 1(12), 52–56.
Kim, D. W., Yu, J. S., & Hassan, M. K. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43, 1–14.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610.
Ladi-Awofeso, E. F., Ofurum, C., & Solomon, E. (2023). Forensic accounting and fraud detection in Nigerian public sector: A case study of Rivers State. Asian Journal of Economics, Finance and Management, 5(1), 275–286.
Madinger, J. (2006). Money laundering: A guide for criminal investigators (2nd ed.). CRC Press.
Mehrotra, A. N., & Yetman, J. (2015). Financial inclusion: Issues for central banks. BIS Quarterly Review.
Micah, E. E. M. (2022). Effects of forensic accounting on fraud detection and prevention in business organisations in Nigeria. ANAN Journal of Contemporary Issues, 3(3), 19–41.
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, 281–289.
Odoemenam, C. N., & Ayogoi, P. (2025). Lifestyle audits for the prevention and detection of fraud in the Bayelsa State public service.
Obadiah, T. G., & Ibrahim, A. (2024). Financial fraud detection in ministries, departments and agencies (MDAs) in Nigeria: The role of forensic accounting skills. International Journal of Research and Innovation in Social Science, 8(8), 2912–2936.
Ogbaini, A. C., Akpor, A. A., Oboh, R., Oputa, J. E., & Bello-Marvis, V. (2024). The role of forensic accounting in fraud detection and prevention in Nigerian public sector: A case study of Lagos, Nigeria. Pedagogik Jurnal Pendidikan, 19(1), 71–83.
Ojo, A., Igbekoyi, O. E., Oluwagbade, O. I., & Awotomilusi, N. S. (2025). Forensic accounting techniques and fraud detection in selected public entities in Nigeria. Journal of Business and Accounting Economics, 11(6), 30–55.
Ojo-Agbodu, A., Abiola, J., & Ndubusi, E. I. (2022). Effect of forensic accounting on fraud detection and prevention in selected quoted deposit money banks in Nigeria. FUOYE Journal of Finance and Contemporary Issues, 3(2), 36–48.
Okoye, E. I., Adeniyi, S. I., & James, O. N. (2019). Effect of forensic accounting on fraud management in selected firms in Nigeria. International Journal of Economics, Business and Management Research, 3(2), 149–168.
Olukowade, E., & Balogun, E. (2015). Relevance of forensic accounting in the detection and prevention of fraud in Nigeria. Historical Research Letter, 23, 17–25.
Onyema, U., Ojo-Agbodu, A., & Adebayo, O. (2024). Impact of forensic accounting on fraud management: An examination of selected deposit money banks in Nigeria.
Oyerogba, E. O. (2021). Forensic accounting and fraud management in Nigeria. Journal of Accounting and Taxation, 13(2), 55–66.
Ozili, P. K. (2018). Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340.
Ozili, P. K. (2020). Theories of financial inclusion (MPRA Paper No. 101810).
Ozili, P. K., & Mhlanga, D. (2024). Why is financial inclusion so popular? An analysis of development buzzwords. Journal of International Development, 36(1), 231–253.
Ozuomba, C. N., Ofor, T. N., & Okoye, P. V. C. (2016). Forensic accounting and fraud in the public interest: A case of Imo State Ministry of Finance. Research Journal of Management Science, 5(12), 1–6.
Popoola, O. M. J., Che-Ahmad, A., & Samsudin, R. S. (2015). Forensic accounting knowledge and skills on task performance fraud risk assessment. Journal of Business Management, 17(2), 15–29.
Pourhabibi, T., Ong, K. L., Kam, B. H., & Boo, Y. L. (2020). Fraud detection: A systematic literature review of graph-based anomaly detection approaches. Decision Support Systems, 133, 113303.
Power, M. (2021). Audit trails and accountability in modern financial systems. Accounting, Organizations and Society, 91, 101225.
Sahay, R., Čihák, M., N'Diaye, P., Barajas, A., Mitra, S., Kyobe, A., & Yousefi, S. R. (2015). Financial inclusion: Can it meet multiple macroeconomic goals? IMF Working Paper No. 15/17.
Saman, U. P. (2019). The role of forensic accounting in detecting economic crimes. Research Journal of Finance and Accounting, 10(16), 98–107.
Singleton, T. W., & Singleton, A. J. (2010). Fraud auditing and forensic accounting (4th ed.). John Wiley & Sons.
United Nations Conference on Trade and Development. (2020). Economic development in Africa report 2020: Tackling illicit financial flows for sustainable development in Africa. United Nations.
Usman, A. K., & Shah, M. H. (2013). Critical success factors for preventing e-banking fraud. Journal of Internet Banking and Commerce, 18(2), 1–54.
Wijerathna, A. G. H. S. K., & Perera, H. A. P. L. (2020). A systematic literature review on forensic accounting. Proceedings of the International Conference on Business and Information (ICBI).
Wilhelm, W. K. (2004). The fraud management lifecycle theory: A holistic approach to fraud management. Journal of Economic Crime Management, 2(2), 1–38.
World Bank. (2018). Financial inclusion overview.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 John Ogenyi Oboh, Solomon Andortan Andortan, Francis Ubi Ntum, Florence O Otuagoma
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The FUDMA Journal of Accounting and Finance Research (FUJAFR) operates a copyright policy that ensures a balance between author rights and wide dissemination of scholarly work.
1. Author Copyright Retention
Authors retain full copyright of their published work without restriction. Submission to FUJAFR does not transfer ownership of copyright to the journal.
2. License to Publish
By submitting a manuscript and upon acceptance, authors grant FUJAFR:
- The right to publish, reproduce, and distribute the article
- The right to identify itself as the original publisher of the work
This grant is non-exclusive, meaning authors are free to reuse their work in other contexts, provided proper acknowledgment of the original publication in FUJAFR is made.
3. Licensing of Published Content
All articles are published under the:
Creative Commons Attribution-NonCommercial License (CC BY-NC 4.0)
Under this license:
- Users may share and adapt the work for non-commercial purposes only
- Proper attribution to the author(s) and the journal is required
- Any commercial use requires explicit permission from the copyright holder
4. Author Reuse Rights
Authors are permitted to:
- Archive their published articles in institutional repositories or personal websites
- Share their work for educational and research purposes
- Reuse portions of their work in future publications (e.g., books or other articles), provided proper citation of the original publication is included
5. Third-Party Content
Authors are responsible for obtaining permission to use any third-party copyrighted material (e.g., images, tables, datasets) included in their manuscripts. Proper acknowledgment must be provided where required.
6. Attribution Requirement
All users of FUJAFR content must provide appropriate credit, including:
- Author name(s)
- Article title
- Journal name (FUJAFR)
- Year of publication
