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Original Research

FORENSIC ACCOUNTING AND THE ENHANCEMENT OF THE QUALITY OF FINANCIAL STATEMENT: MODERATING MDA’s IN THE PUBLIC SECTOR IN SOUTH-WEST STATES OF NIGERIA

ISRAEL S. AKINADEWO 1, JAMES U. AKPAN 2, and NIYI SOLOMON AWOTOMILUSI 3.

Vol 18, No 04 ( 2023 )   |  DOI: 10.17605/OSF.IO/4WNGJ   |   Author Affiliation: Department of Accounting, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria 1,2,3.   |   Licensing: CC 4.0   |   Pg no: 1042-1056   |   Published on: 21-04-2023

Abstract

The misappropriation and low quality of financial statement in the public sector motivated this study. The study investigated the effect of forensic accounting on the enhancement of the quality of financial statements of public sector’s MDA’s. The study adopted primary data through the administration of questionnaire to accountants in the South-West MDA’s. The sample size was 237, purposively determined. Data were analysed using descriptive statistics and inferential statistics. The results of the logit regression revealed that adequate knowledge and skills of disruptive technology elements like cloud computing, Big-Data and business analytics by forensic accountants as shown in the results of the proxies of forensic accounting (cloud computing, β =0.393; p-value<0.000); (Big-Data skills, β =0.216; p-value<0.000 < 5% level of significance), and (Business intelligence tools, β =0.333; p-value<0.000), will assist to enhance the credibility of financial reporting in the public sector. The study recommended among others for the establishment of a team of professional and academic bodies to review the current practice of forensic accounting in Nigeria in inculcating the findings of this study for timely and effective implementation of effective forensic accounting to enhance financial statements quality.


Keywords

Big-Data, Business Intelligence, Cloud Computing, Forensic Accounting, Financial Reporting Quality, Public Sector