IMPACT OF FORENSIC ACCOUNTING TECHNIQUES ON REDUCING PROCUREMENT FRAUD IN LISTED MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study examines the impact of forensic accounting techniques on reducing procurement fraud in listed manufacturing companies in Nigeria. The specific objectives are to determine the impact of transaction testing, document examination, and fraud risk assessment on reducing procurement fraud in listed manufacturing companies in Nigeria. A survey was conducted among 250 chartered accountants certified in forensic accounting, employed across 68 manufacturing firms listed on the Nigeria Exchange Group. The research employed a structured questionnaire using a five-point Likert scale to gather data on the perceived effectiveness of these techniques. Descriptive statistics and multiple regression analysis were used to analyze the data, revealing significant correlations between the forensic accounting techniques and procurement fraud reduction. While transaction testing did not show statistical significance, document examination and fraud risk assessment emerged as significant predictors of fraud reduction. The findings underscore the importance of tailored forensic accounting strategies in combating procurement fraud within Nigerian manufacturing companies. Recommendations include enhancing the adoption of document examination and fraud risk assessment techniques, alongside continuous monitoring and training initiatives to strengthen internal controls and fraud prevention efforts.