Accountants’ Capability Requirements for Fraud Prevention and Detection in Nigeria

International Journal of Economics and Financial Issues, Vol. 6 (S4), 1-10, July 2016

15 Pages Posted: 12 Jul 2016

See all articles by Oluwatoyin Muse Johnson Popoola

Oluwatoyin Muse Johnson Popoola

Universiti Utara Malaysia

Ayoib Che-Ahmad

Universiti Utara Malaysia

Rose Shamsiah Samsudin

Universiti Utara Malaysia, College of Business, School of Accountancy

Kalsom Salleh

Kolej Poly-Tech Mara

Adebola Babatunde

Afe Babalola University

Date Written: July 11, 2016

Abstract

This paper investigated the capability requirements as represented by Knowledge (KR) and Skills (SR) requirements and competence requirement as represented by Fraud risk assessment (FRA) of a forensic accountant and auditor in the Nigerian public sector. In addition, this study explored whether the forensic accountant possesses higher levels of SR, KR and FRA requirements than the auditor in an evolving area of fraud prevention, detection and response. The study embraced positivist paradigm, adopted cross-sectional design and a survey method. Of the 400 questionnaires distributed, 363 questionnaires were returned and out of which 316 questionnaires were retained for further analysis. The variables are operationalized with a total of 29 observable items, which included demography information. The study results confirmed the significant positive relationship between Skill and Knowledge on Fraud Risk Assessment. Furthermore, the findings showed that the forensic accountant has significantly higher levels of Knowledge, Skill and Fraud Risk Assessment than auditor regarding issues of fraud prevention, detection and response. The implication of this study might result in the overall reduction of corruption and fraud in the public sector, enhancement of institutional, regulatory, ethical and legal framework, and create awareness amongst the accounting and auditing systems management in Nigeria especially and similar developing nations in general. The results add value to the theory, method and practice on fraud prevention, detection, and response by introducing the empirical examination of KR, SR, and FRA in a workplace.

Keywords: forensic accounting, auditing, capability requirement, task performance, fraud prevention and detection, government policy and regulation

JEL Classification: M40, M41, M42, M48, M49

Suggested Citation

Popoola, Oluwatoyin Muse Johnson and Che-Ahmad, Ayoib and Samsudin, Rose Shamsiah and Salleh, Kalsom and Babatunde, Adebola, Accountants’ Capability Requirements for Fraud Prevention and Detection in Nigeria (July 11, 2016). International Journal of Economics and Financial Issues, Vol. 6 (S4), 1-10, July 2016, Available at SSRN: https://ssrn.com/abstract=2807837

Oluwatoyin Muse Johnson Popoola (Contact Author)

Universiti Utara Malaysia ( email )

Sintok, Kedah 06010
Malaysia
+60164354874 (Phone)
+6049287216 (Fax)

HOME PAGE: http://ssrn.com/author+2390979

Ayoib Che-Ahmad

Universiti Utara Malaysia ( email )

Sintok, Kedah 06010
Malaysia
+6049287228 (Phone)

Rose Shamsiah Samsudin

Universiti Utara Malaysia, College of Business, School of Accountancy ( email )

Sintok, Kedah 06010
Malaysia
+60194774267 (Phone)

Kalsom Salleh

Kolej Poly-Tech Mara ( email )

Level 4 & 5, Jalan 7/91, Taman Shamelin Perkasa
Cheras
Kuala Lumpur, 56100
Malaysia

Adebola Babatunde

Afe Babalola University ( email )

KM 8.5, Afe Babalola Way,
P.M.B 5454
Ado-Ekiti, Ekiti State, Western 234432
Nigeria

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