Application of Forensic Accounting: A Tool for Confidence in Auditors’ Reports

摘要

The paper examines forensic accounting as a tool that complements various auditing concepts to establish confidence in auditors’ reports to the users. In spite of the concepts of independence, integrity, fairness and objectivity auditors’ reports are still challenged and most of the times are found vulnerable. Adequate knowledge of forensic accounting will aid experts’ defence in fraud examinations and litigation support. In the analysis of data, a descriptive statistical analysis was used in the study. 400 questionnaires were administered on firms of auditors, legal luminaries and computer experts as respondents. The data were analysed using chi-square statistical techniques. Secondary data through the use of textbooks, journals, articles and internet materials were equally used. It is revealed that the situations in audit risk areas such as losses from theft of cash or goods, payments and receipts of bribes, intentional misstatement in financial information such as over statement of revenue and earnings, under statement of cost and expenses and intentional misrepresentations made to auditors are rampant occurrences. The study hereby recommends that forensic accounting courses become compulsory in the curriculum of all the tertiary institutions offering accounting as a discipline and all professional accounting institutes and accountants in practice should include forensic accounting in their regular mandatory continuing professional development (MCPD) programmes, workshops and seminars in order to produce reliable reports.