Sale!
Placeholder

THE USEFULNESS OF FORENSIC AUDIT IN THE PREVENTION AND DETECTION OF FRAUD.

10,000 3,000

Topic Description

Chapter 1-5: Yes | Instant Download: Yes | Ms Word and PDF Format: Yes | All Chapters, Abstract, Figures, Appendix, References : Yes.... Click on "GET FULL WORK" Button Above For The Complete Material.

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The incidence of fraud and misappropriation of funds in recent time poses a threat
to auditing as a branch of accounting profession because of its perennial nature.
This has resulted to questions as to whether auditing actually play any significant
role towards the attainment of accountability and prevention of fraud especially
that which is currently happening in our major or key financial institutions.
Most of our financial institutions today fail to recognize that the phenomenon
“fraud” can appear to be more dangerous when compared to other forms of
problem like armed robbery attack which can only affect the institution within a
short period of time, such may have no long term effect on their operations.
However, any significant fraud committed in an institution, not only undermines or
shakes up it’s financial stability but can severely affect the reputation of the
institution thereby resulting to investor’s loss of confidence.
Most times, the directors write off losses of fraud (including money laundering)
under the general heading of “bad debt” rather than admitting that there have been
a general failure to exercise or implement proper safeguards in the system of
internal checks and control or managerial negligence in applying or perfecting the

appropriate oversight to routine business process where institutions funds and
assets are at risk. In order to counter, stop and prevent the perpetration of such
frauds comes forensic auditing or accounting.
Forensic auditing or accounting is the specialty practice area of accounting that
describes engagements that results from actual or anticipated disputes or litigation.
“forensic” means “suitable for use in a court of law” and it is to that standard and
potential outcomes that forensic accountants also referred to as forensic auditors
or investigative auditors, often have to give expert evidence at the eventual trial of
companies and institutions who have committed fraud, in a court of law.
1.2 STATEMENT OF THE PROBLEM
This topic “the usefulness of forensic auditing in prevention and detection of
fraud” was conducted to focus on most important problems facing a corporate
organization. The failure of statutory audit to prevent and reduce misappropriation
of corporate and an increase in corporate crimes has put pressure on the
professional accountant and legal practitioner to find a better way of exposing this
evil frame in business world such as.
• The problems of loss of customers/depositors

• The persistent increase in business failures fuelled or encouraged by frequent
incessant fraudulent activities in our financial institutions.
• The problem of lack of confidence on the part of the investing public to commit
their resources to financial institutions due to fraud.
• The problem of how financial institutions to embrace forensic audit as a useful
tool in prevention and detection of fraud.
1.3 STATEMENT OF THE OBJECTIVES
The general objective of this study is to inculcate the knowledge of forensic
auditing in preventing and detecting corporate fraud in Nigeria. Though the main
objective of forensic auditing will vary according to the purpose of hiring
individual or entity, the essence of this study is to employ the new knowledge to
uncover fraud, crimes and evasions of financial obligations or malpractices
committed through manipulation of accounting records. The specific objectives of
this study are as follows;
• To establish the reason for the loss of customer/depositors
• To investigate how incidence of fraud, encourages or leads to business/bank
failures

SEE FAQ (frequently asked questions)

VIEW OUR SERVICES:

see frequently asked questions