FORENSIC ACCOUNTING AND PUBLIC PROCUREMENT FRAUD PREVENTION: EVIDENCE FROM OSUN STATE, NIGERIA

Abstract

Despite the existing controls and planning mechanisms put in place by the public sector, instances of fraud and corruption in public procurement remain prevalent. Forensic accounting with its focus on detailed analysis of financial records and transaction provide the necessary precaution that discloses hidden fraud and ensure fraud prevention. This study investigated the effect of forensic accounting in the prevention of procurement fraud within the Osun State public sector. The population of this study included 300 staffs working in the selected Osun State public sector. The sample size encompassed 150 respondents from Osun State ministries, agencies, and public tertiary institutions. The research utilized a survey design, collecting data through questionnaires. Data analysis methods used included correlation, descriptive statistics, and regression analysis. Results from this finding indicated a significant relationship between forensic accounting and public procurement fraud prevention evidenced by t-statistics of (23.727 and 0.000) respectively. The study concludes that forensic accounting greatly influences fraud prevention in Osun State public sector. The study recommends the employment of qualified forensic accountants so as to ensure the detection and prevention of public procurement fraud in the Osun State public sector. Additionally, it suggests adopting a robust forensic accounting system to uncover vulnerabilities in public procurement fraud prevention and detection.

Keywords

• Forensic Accounting
• Fraud
• Fraud Diamond
• Public Procurement
• White Collar Crime