Asian Journal of Business Management 4(2): 124-129, 2012 ISSN: 2041-8752 © Maxwell Scientific Organization, 2012 Submitted: November 25, 2011 Accepted: December 27, 2011
Published: April 15, 2012
Fraudulent Activities and Forensic Accounting Services of Banks in Port Harcourt, Nigeria
Onuorah Anastasia Chi-Chi and 2Appah Ebimobowei Department of Accounting, Banking and Finance, Delta State University, Asaba Campus 2 Department of Accounting, Bayelsa State College of Education, Okpoama Brass Island, Yenagoa
Abstract: The increasing rate of frauds and financial malpractices in the Nigerian banking industry in recent times have made financial institutions to develop means of facing these ...view middle of the document...
Ke y word: Banks, forensic accounting, fraud, fraudulent activities, internal control, Nigeria INTRODUCTION The widespread frauds in modern organizations have made traditional auditing and investigation inefficient and ineffective in the detection and prevention of the various types of frauds confronting businesses world-wide. Oyejide (2008) opine that fraud is a subject that has received a lot of attention both globally and in Nigeria. This interest has been heightened by several high profile cases involving several organizations. Issues relating to fraud have also been the subject of rigorous theoretical and empirical analysis in the academic literature (Appah and Appiah, 2010). According to Karwai (2002) maintains that the increasing wave of fraud is causing a lot of havoc in Nigeria. This is because fraud has eaten deep into every aspect of the Nigerian society to the extent that many organizations have lost confidence of their customers. In the words of Adesola (2008), the threat of fraud to the global economy is better illustrated by the statistics released by Criminologists at a consultancy: over two hundred thousand cases of online frauds were committed in the United Kingdom in 2006, doubled the amount of real world robberies. The study revealed that 75% of card not present fraud was committed on-line in 2006. The global market is concerned about fraud in high and low places. We are very familiar with Enron, WorldCom etc. We are also experiencing more and more frauds committed in the society. Okunbor and Obaretin (2010) reported that the spates of corporate failures have placed greater responsibility and function on accountants to equip themselves with the skills to identify and act upon indicators of poor corporate governance, mismanagement, frauds and other wrong doings. It has become imperative for accountants at all levels to have the requisite skills and knowledge for identifying, discovering as well as preserving the evidence of all forms of irregularities and fraud. Therefore, fraud requires more sophisticated approach from preventative to detection. One of the modern approaches that can be used from the prevention to detection is called forensic accounting. According to Hansen (2009), computer forensics is currently the investigators best tools in detecting and implementation of white-collar investigations. Degboro and Olofinsola (2007) described forensic accounting as the application of criminalistic methods, and integration of accounting investigative activities and law procedures to detect and investigate financial crimes and related accounting misdeeds. According to Dhar and Sarkar (2010), forensic accounting, also called investigative accounting or fraud audit, is a merger of forensic science and accounting. Crumbley (2003) defined forensic science as the
Corresponding Author: Appah Ebimobowei, Department of Accounting, Bayelsa State College of Education, Okpoama Brass Island, Yenagoa
Asian J. Bus. Manage.,...