I The Role of An Accountant in Curbing C

THE ROLE OF AN ACCOUNTANT IN CURBING CORRUPTION IN NIGERIA: A
CASE STUDY OF UNIVERSITY COLLEGE HOSPITAL, U.C.H IBADAN
BY
SALAMI OLUWAKEMI RACHAEL
MATRIC NO: NOU152764178
A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY
OF MANAGEMENT SCIENCE, NATIONAL OPEN UNIVERSITY OF NIGERIA,
ABUJA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF BACHELOR OF SCIENCE (B.Sc. HONS) DEGREE IN ACCOUNTING
MARCH, 2018
i
DECLARATION
I SALAMI OLUWAKEMI RACHAEL do humbly declare that this research work entitled
THE ROLE OF AN ACCOUNTANT IN CURBING CORRUPTION IN NIGERIA is as
a result of findings from my research efforts, carried out in the Faculty of Management
Sciences, National Open University of Nigeria. It was carried out under the supervision of
Dr. Salami I further declare that, to the best of my knowledge, this work contains no material
previously published by another person or group except where due acknowledgement has
been made in the text and stands subject to plagiarism scrutiny.
__________________________ _________________________
Name/Signature Date
ii
CERTIFICATION
This is to certify that this research project entitled THE ROLE OF AN ACCOUNTANT IN
CURBING CORRUPTION IN NIGERIA was carried out by SALAMI OLUWAKEMI
RACHAEL in the Faculty of Management Sciences, National Open University of Nigeria,
Abuja, Nigeria for the award of Bachelor of Science Degree in Accounting.
_____________________ _______________________
Dr. L. O. Salami Date
PhD, ACA
iii
DEDICATION
This project is dedicated to the infinite merciful God, for His protection and provision
throughout my career, who has proved that something good can come out of Nazareth. Also,
to my able parents for their contribution and unrelentless effort towards my education may
God continued to bless you (Amen).
iv
ACKNOWLEDGEMENTS
I hereby register my profound gratitude to God Almighty who gave me good health, wisdom
and enablement to see this project work through may His name be Glorify.
I am very much indebted to all those who contributed in one way or the other to the
successful completion of this project. I thank my supervisor in the person of Dr.L.O Salami
who had swift solution to all my pressing problems during the course of the write-up. I
equally extend my regards to Prof. Adisa, Director NOUN, Ibadan Study Centre and other
members of staff for their support.
My greatest appreciation goes to my parents Mr. and Mrs. Salami for their untiring efforts,
prayer and financial support and to my Brothers Mr. Olalekan and Mr. Olakunle and also to
my fiance for their wonderful encouragement and support.
I also express my innermost thanks to my friends and course mates Ojo Aduragbemi,
Michael, Benjamin, Bayo, Ope for their support and guidance during the research work and
well-wishers I say God bless you all.
v
ABSTRACT
This study aims at exploring the role of an accountant in curbing corruption in Nigeria. The
objective of the research work seeks to explore the role an accountant can play in the fight
against corruption by applying his investigative skills, providing litigation support service
and documentation and reporting. The population used in the research was the University
College Hospital (UCH). The research design employed was the survey research. Data were
majorly collected from primary sources. The hypothesis testing in this research work was
done using Chi-Square. The results of the empirical findings show that accountants are
relevant in investigating crime and corruption in Nigeria. Accountants play a role in litigation
support services in Nigeria, and accountants are relevant in documentation and reporting. It
was observed that accountants play a significant role in curbing crime and corrupt practices in
any public sector since they provide a mechanism to hold people accountable, such that those
who manage resources in a fiduciary capacity do not easily abuse that trust without detection.
Amongst other proffered solutions, it was recommended that accounting professionals should
always act proactively such that the members of the profession in Nigeria are kept abreast of
emerging technologies, especially in the area of accounting. The legislature should also see to
it that the executive grants full autonomy to the agents of government that are charged with
enforcing accountability. Office of the Auditor-General of the Federation, the Economic and
Financial Crimes Commission, Independent Corrupt Practices Commission, and Code of
Conduct Bureau, should be fully independent entities free to do their jobs without undue
meddling and interference.
vi
TABLE OF CONTENTS
Page
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vi
Table of Contents vii
List of Tables ix
List of Figures xi
CHAPTER ONE: INTRODUCTION
1.1 Introduction 1
1.2 Background to the study 1
1.3 Statement of the problem 4
1.4 Objectives of the study 5
1.5 Research questions 5
1.6 Statement of the hypotheses 6
1.7 Significance of the study 6
1.8 Justification of the study 7
1.9 Scope of the study 8
1.10 Definitions of terms 8
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 10
2.1 Conceptual frame work 11
vii
2.2 Theoretical frame work 19
2.3 Literature on the subject matter 26
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Area of study 35
3.1 Research design and sources of data 36
3.2 Study population and determination of sample size 38
3.3 Instrumentation 38
3.4 Procedure for data collection and data analysis 39
3.7 Limitations of the study 40
CHAPTER FOUR: DATA ANALYSIS, FINDINGS AND DISCUSSION
4.0 Introduction 41
4.1 Findings of the study 41
4.2 Test of hypothesis 53
4.3 Discussion of the findings 58
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings 60
5.2 Conclusion 60
5.3 Recommendations 61
5.4 Proposal for further studies 62
References 63
Appendix 67
viii
LIST OF TABLES
Table 2.1: Nigeria’s stance on the corruption perception index of the TI over ten years 32
Table 4.1.1: Gender of the respondents 41
Table 4.1.2: Age of the respondents 42
Table 4.1.3: Status of respondents 42
Table 4.1.4: Educational Background of the Respondents 43
Table 4.1.5: Years of Experience of the Respondents 43
Table 4.1.6: Is corruption truly rampant in the accounting firm in Nigeria? 44
Table 4.1.7: Is level of corruption in Nigeria a function of bad governance? 44
Table 4.1.8: Do you think that the accounting firm is capable or able to fight
corruption in Nigeria? 45
Table 4.1.9: Do you think that the use of accounting information will enhance
our society in dealing and fighting with the problem of corruption? 46
Table 4.1.10: Do you think that accountants are the main role/lead to curb or fight
corruption in Nigeria? 46
Table 4.1.11: Do you think that the effectiveness of accounting firm will be able
to eradicate corruption in Nigeria? 47
Table 4.1.12: Does accountant search for evidence of criminal conduct or assist the
determination of or rebuttal of claimed damages? 47
Table 4.1.13: Does accounting provide assistance with the protection and recovery
of assets? 48
Table 4.1.14: Doesaccounting provides coordination of other expert including, private
investigations, forensic document examiner, consulting engineers in
fighting corruption? 48
Table 4.1.15: Do accountants review the relevant documentation to form an initial
ix
assessment of the case in an identified area of loss? 49
Table 4.1.16: Do accountants attend the examination for discovery to review the
testimony, assist with the understanding the financial issues and to
formulate additional questions to be asked during curbing corruption? 50
Table 4.1.17: Do accountants obtain documents necessary to support or refute a claim? 51
Table 4.1.18: Do accountant provides relevant parties with report to judge the expert’s
opinion and the basis for curbing corruption? 51
Table 4.1.19: Does auditor leaves audit trail in carrying out his investigation? 52
Table 4.1.20: Is accountant’s report designed to support the curbing of corruption in
Nigeria? 52
Table 4.2.1: Testing of the 1st Hypothesis 54
Table 4.2.2: Testing of the 2nd Hypothesis 56
Table 4.2.3: Testing of the 3rd Hypothesis 58
x
LIST OF FIGURES
Figure 2.1: Fraud triangle 22
Figure 2.2: Fraud diamond 23
xi
CHAPTER ONE
1.1 INTRODUCTION
Nigeria became an independent nation on the 1st October 1960 a country richly endowed
with monumental geographical and diverse natural resources ranging from crude oil to gas
Nigeria possesses potential market ability for rapid economic development. However, in spite
of these obvious resources and its advantage, Nigeria remains a poor and underdeveloped
country. Scholars have achieved and advanced several reasons to explain this parlous and
depleting state. One of the major and prominent factors advanced is corruption.
Corruption has been a major problem in Nigeria since independence, numerous state
institutions have become dysfunctional because of large-scale corrupt practices, Projects are
routinely abandoned, and no one is brought to book, public goods and resources are diverted
to private ends.
Corruption endangers the good governance and the democracy we see today, Corruption was
cited as one of the more prominent reasons for Nigeria’s first military coup by the coups of
January 15th, 1966 military putsch, Massive corruption and resources brigandage also were
cited as reasons for the military takes over by the regime of Buhari and Tunde Idiagbon on
December 31st, 1983.No society can achieve its full potentials if allows corruption to become
a full-blown cancer as it has become in our nation.
1.2 BACKGROUND TO THE STUDY
Corruption is a global phenomenon. It occurs in both the developed and the developing
countries of the world. The difference however is that in the developed countries, it does not
obstruct the normal functioning of state and social system in the same way, because there are
established ways of dealing with the problem. Corruption is however of special concern in
developing countries. In the countries where poverty is widespread, those who pay and
receive bribes further expropriate the nation’s wealth leaving little for its poorest citizens. In
1
such situations where corruption is systemic, even countries with extensive natural resources
may fail to develop in a way that benefits the ordinary citizen.
According to Michael (1997: 69-90) corruption is of a symptom of deeper difficulties in the
society where it is prevalent and usually operates within the broader context of other social
problems. Thus, corruption is associated with slow economic growth, reduced investment
feeble property and contract right, effective institution, limited social interaction and weak
rule of law, poor economic competitiveness, deep ethnic division and conflicts. Low popular
participation in polities of civil liberty, low educational attainment, and closed economic and
political systems. In other words, corruption is pervasive in underdeveloped societies and
there is hardly effective means of combating the cankerworm. In Nigeria, corruption is a
pervasive phenomenon; corrupt practices have become synonymous with governance and
consequently, have become the bane of Nigerian society. According to Ake (1976: 3), the
widespread corruption of public officials could be attributed to the economic weakness of the
Nigeria ruling class, as fact that he in turn attributes to the colonial experience and to the
dependence of the Nigeria economy on international capitalism.
Corruption is not a recent phenomenon in Nigeria society. As noted by Ayose (2005: 87). On
February 26, 1952 during the dying days of colonialism, the Emir of Gwandu moved a
motion in the Northern House of Chief. “That this house agreeing that bribery and corruption
are widely prevalent in all walks of life, he recommends that Native authorities should make
every effort to trace and punish offenders with strict impartiality and to educate public
opinion against bribery and corruption”.
Indeed, the first anti-corruption war was launched by General Murtala Muhammed on 16th
September 1975. He set up a three-man panel to investigate and examine all the assets of
certain former officers to ensure that such officer have not abused their office in the
acquisition of such assets. This led to the retirement of many senior public officials and the
2
much talk about mass purge. His regime that initiated the making of the 1979 constitution
provided for a code of conduct for public officers, a code of conduct Bureau for the
enforcement of the prescribed behaviour and a code of conduct tribunal. The Second
Republic (1979 – 1983) the Shagari administration launched an anti-corruption programme
Christened ethical Revolution and even appointed a minister of cabinet rank for national
guidance following his lamentation about the state of corruption in Nigeria. This was to raise
awareness and hopefully change deviant behaviour into conforming one. In spite of this
however, one of the reasons why his government was toppled was because of its weakness in
controlling corruption. The Buhari / Idiagbon regime (1983 - 1985) the regime launch an
anti-corruption programme called “war against indiscipline”. The government exhibited
seriousness to fight fraud, corruption, abuse of public office or graft and other similar vices.
The regime matched is pronouncement with action by not only promulgating draconian
legislation to control and prevent corrupt practices but brought to book people considered to
have been fraudulent of corruption.
Above all, the present administration of Muhammad Buhari has also adopted the Economic
and Financial Crimes Commission as one of the Commissions of combating corruption. From
the foregoing analysis, it is demonstrated that corruption is indeed a frightening problem in
Nigeria. It pervades every segment of the national atmosphere and has overwhelmed all
levels and branches of government, it undermines the goals of development, public funds are
often arbitrarily handled, use for private purposes or deposited in personal account including
fattening of foreign bank account. Consequently, government and social economic conditions
have badly deteriorated. The crime of corruption has always been viewed with particular
distaste. It is no coincidence that the word itself is also used in the phrase ‘corruption of the
flesh’, to indicate decay, death and malodorous happenings. It is often coined alongside the
word bribery, that is, the means by which officials are induced to become corrupt,” wrote
3
Peter Johnston, former Chief Executive of the Scottish Institute of Chartered Accountants.
Olajide F (2000) notes that there is an alarming increase in the number of fraud and
fraudulent activities in Nigeria, requiring the visibility of accounting services. Therefore,
many foreign investors have lost several billions of dollars to fraudsters thereby leading to
reduction or even dis-investment from Nigeria and its attendant negative consequences on
economic growth and development. Appropriate legislation was enacted to criminalize all
corrupt conducts including unjust enrichment. Key institution like Independence Corrupt
Practices Commission (ICPC), Economic and Financial Crime Commission (EFCC) were
established to fight corruption.
Corruption is a term with many meanings, but generally, it entails misusing one’s office for a
private gain or unofficial end. It involves both monetary and non-monetary benefit. Bribery,
extortion, influence peddling, nepotism, frauds, ‘grease money’, and opportunism readily
spring to mind. Accounting unit serve as means of curbing corruption in Nigeria economy.
According to Waziri (2009), corruption afflicts virtually all parts of Nigeria society. It has
eaten deep into Nigeria value system and is now threatening to spread to the culture as public
adulation for wealth has increased. In this age of high technology, fraud investigators can no
longer be satisfied with just mere mouth but with accounting skills and treated by accountants
with extensive knowledge of accounting information (Bressler, 2006; Manning, 2005;
Ramswamy, 2005).
1.3 STATEMENT OF THE PROBLEM
One of the pertinent issues in Nigeria today is the focus on one of the greatest impediment to
good governance and sustainable development. In recent times, corruption has an issue taken
the front burner in development discourse worldwide since 1996; the World Bank has
supported more than six hundred (600) anti-corruption programmes and governance initiative
developed by its member countries.
4
Ironically, the global financial body was embroiled in scandalous dealings that led to the
removal of its chairman.
 Accountability is typically weak in Nigeria because the country is ripe for corruption
and rife with it
 The motivation to earn extra income is extremely strong, worsened by poverty, low
and declining civil services
 Thus, corruption has become a cankerworm in the political system, stifling it of its
potential sustainable growth.
1.4 OBJECTIVES OF THE STUDY
The major objective of this study is to examine the role of accountant in curbing corruption
in Nigeria. Other specific objectives to be achieved are:
1. Ascertain the extent to which accounting department of the organisation is being used
as a financial tool for measuring organisational performances.
2. Analyse the completeness of accounting records being kept by accounting department
for economic and financial decision making
3. Identify the duties and responsibilities of an accountant in the organisation
4. Determine the effectiveness of accounting department in curbing corruption in
organisation
5. Ascertain the relationship between incidence of fraud and investor loss of confidence
in organisation.
1.5 RESEARCH QUESTIONS
According to Gire, (1999) the rate at which corruption has grown in Nigeria is such that it
looks as if it has been legalized. The studies on corruption conducted by the Transparency
International in 1996 placed Nigeria as the most corrupt nation with Pakistan placing second
5
from the rear out of 54 nations used in the study (Moore, 1997) As at year 2012, Nigeria was
still among the ten most corrupt countries in the world (Obayelu, 2007)
The aim of this research is to appraise role of accountants in curbing corruption in the society
i. What is the effect of corruption on Nigeria’s development?
ii. Can accountant’s contribution curb corruption?
iii. Does corruption affect the economic and political efforts in Nigeria?
1.6 STATEMENT OF THE HYPOTHESES
The following hypotheses have been formulated to serve as a base for this research:
Hypothesis 1
Ho: The level of corruption in the Nigeria polity is not a function of bad governance and
corrupt individuals.
Hypothesis 2
Ho: The accounting firm is not capable of fighting corruption in Nigeria.
Hypothesis 3
Ho: The use of accounting information has not enhanced society in dealing with the
problem of corruption.
1.7 SIGNIFICANCE OF THE STUDY
Accounting department of any corporate financial organisation are sometimes deeply
implicated in the global financial crisis of any country, due to their inability to carry out
financial transaction with due diligence, transparency and compliance with stated accounting
guidelines and regulation that in turn create rooms for criminal and fraudulent activities such
as money laundering, tax evasion, and others.
Accounting is increasingly seen as a social phenomenon rather than pure technical
phenomenon as it is implicated in both organisational and social context (Hopwood, 1985)
6
following this notion, this study is motivated by the desire to understand the potential role of
accountant in corporate financial institution.
The significance of the study will go a long way to enlighten all people in managerial groups
on the importance of accounting information. That is, seeing accounting tools, as something
that cannot be avoided is the bedrock of management in taking decisions.
The Beneficiaries
 Shareholders: This study will be important and beneficial to the shareholders who are
interested in their capital investment
 The Government: Who really have interest in the profit to help them determine task and
other policies
 The Managers: This study guides the managers to determine the profitability of a business
concern
 The Tax Authorities: It enlightens the tax authorities and gives them the direction on how
to use accounting information for tax assessment
 Public: The study shows the income and expenditure of a particular industry to the public
 Financial Analyst: This study will help the financial analyst to provide a means by which
the finances of a business is controlled, to provide permanent records for all transactions,
and to know the assets and liabilities of the industry.
In addition, it makes some people to work directly in the field of accounting and to create
awareness of how accounting information works effectively and efficiently
1.8 JUSTIFICATION OF THE STUDY
The researcher now finds out that modern accountant and accounting firm is therefore
concerned not only with record keeping but also with focuses on the ultimate needs of those
who use accounting information, whether the users are inside or outside the business itself, so
accounting is not an end in itself. Instead, an information system measures, process and
7
communicates financial information about an identifiable economic entity. The study intends
to examine how accounting information helps management, societies, institutions and others
to curb corruptions, takes decisions as regards the profitability of its products and maintain a
corrupt free economy.
1.9 SCOPE OF THE STUDY
Conceptually the study covers the implicit role accountants play as far as corporate financial
organisations are concerned in Nigeria. However, the research was limited to U.C.H in
Ibadan due to the schedule of the researcher.
1.9 DEFINITION OF TERMS
i. Accounting Department: These are special section of the organisation which provide
services and run by experienced accountants, like individual accountants, accounting
department can specialise in different areas of accounting such as business start-ups or
liquidations.
ii. Financial Accountant: The role of a financial accountant is to record, summarise and
report all the financial transactions of an organisation in such a way that it is possible
for someone outside the organisation to get an accurate picture of the organisation’s
position and performance.
iii. Internal Auditor: Evaluate and report the efficiency and effectiveness of the activities,
processes and procedures within an organisation. They involve in compliance, risk
management and corporate governance
iv. Management Accountant: Assist in strategic planning by providing accurate and
timely financial and non-financial information to the managers and key decision-makers
within an organisation.
8
v. Accountant: An accountant is any person who possesses a professional license to
practise accountancy from a recognized professional body and has legal capacity and
authority to carry out the duties of accountants in taxation and audit practice.
vi. Accountancy: Accountancy is the composite activity of collecting, analysing,
recording, summarizing, reporting and interpreting the true financial position or
transaction of any organisation or government unit.
vii. Financial Report: is a formal record of the financial activities of a business, position,
or other entity. It also provides information regarding the position
viii. Fraud: This refers to a wrongful or criminal deception intended to result in financial or
personal gain. That is, an act or course of deception, omission or perversion of truth in
order to gain unlawful or unfair advantage
ix. Corruption: According to section 2 of I.C.P.C Act (2000), corruption simply connotes
impropriety and encompasses all forms of reprehensible, indecorous and infamous
conduct in the performance of some official and non-officials’ responsibilities. This
means any act, which go out of any normal societal behaviour.
9
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
Academic and policy discussion on corruption in Nigeria has remained an opened debate
(M.A.O ALUKO, 2002; Ogbeidi, 2012) This is particularly common among researchers,
media houses and the common man on the street (Sheu, 2015) This has no doubt created a
bad image of the country among players. For instance, in their annual reports, transparency
international has ranked Nigeria among countries of the World with a high perceived level of
corruption (Transparency International, 2012). In a similar report, United State Department of
International Affairs (2012) also reported that there exist massive corruptions in Nigeria
affecting every sector of the economy and doubted the efforts of the Nigerian Government in
fighting economic and financial crimes.
Previous researchers have also studied the Nigerian effort in fighting corruption. Some were
focussing on the development in Nigeria (Agbiboa, 2013; M.A.O Aluko, 2002; Ogbeidi,
2012) While others reviewed the challenges of the EFCC (Sowunmi, Adesola and Salako,
2010; Umoh and Ubom, 2012) In addition Enofe, Okpabo and Atube (2013), Owolabi, Dada,
and Olaoye (2013) studied the impact of accounting firm in fraud detection and consequently
recommended the adoption of accounting knowledge in fraud detection.
However, limited studies have accorded attention to organizational use of role of accountants
in curbing corruption (Bierstaker, Brody, and Pacini, 2006; Muthusamy, 2011) indicating an
apparent inadequacy of research findings on the adoption of accounting firms. It is therefore
the aim of this project to review these challenges as they affect the achievement of the
objective of accountants and proposed a framework for understanding the factors influencing
the adoption of accounting role in fraud detection process.
10
2.1 CONCEPTUAL FRAME WORK
Corruption is now a worldwide phenomenon. It is pervasive both in the rich nations and poor
nations alike and especially those of the sub-Sahara Africa. Nkom (1982) has defined
corruption as "the perversion of public office for private advantage". The Corrupt Practices
and Other Related Offences Act, (2000) in section two, defined corruption to included
bribery, fraud and other related offences. Olaniyan (2002) defined corruption to include
bribery, fraud and dishonesty, which is capable of destroying or perverting the purity of
societal well-being. Sentusia (1993) described it as misuse of entrusted power for private
benefit. The World Bank (2005) asserted that corruption undermines development by
distorting the rule of law and weakening the institutional foundation on which economic
growth depends. Obasanjo (2003) opines that at the root of the corruption quagmire in
Nigeria, is the failure and virtual collapse of governance, the contamination of democratic
value, the erosion of accountability procedures and the prevalence of bad leadership. From
the twin angle of interest and responsibility, one would observe that it has been a catalogue of
unethical practices in the polity. No economic measures, however designed, which do not
consider the human aspect of our problems, can secure us freedom and relief from economic
crisis. The country needs a relief from ethical decadence through accounting education.
A great number of public discusses inundate the involvement of accountants in corruption
practices. For instance, Williams (2005) states that "lawyers are solicitors, advocates, judges,
legal draftsmen and legal advisers in various sectors; above all, they graduate to become
judges who interpret the laws". Continuing, he averred that accountants on their part are
"auditors, financial analysts, tax consultants on one hand and they are also forensic
accountants". He concluded by saying that these two key professionals are responsible for
helping their clients to find loopholes in the regulatory laws and use them to the advantages
of their clients in most cases. In a corruption pervasive society and where there is the urge
11
and craze to get rich fast, certainly the accountant and the accounting profession cannot be
wholly exonerated from some degree of complicity and involvement.
Accounting profession is known all over the world as an integrity profession. It has been
averred that accounting skills without integrity are like equipping someone with the tools to
steal. What makes an accountant is the core value of integrity. Therefore, the education of an
accountant must of priority lay emphasis on integrity rather than on technical skill acquisition
which in this era of information technology may not be able to give an individual a distinctive
character.
2.1.1 Concept of fraud
The Institute of Turkish History explains the word fraud as “a deceptive trick, scam, game,
artifice, cabal which is committed to cheat, mislead someone” and “contributing something
useless to something in order to gain advantage” (Institute of Turkish History 1998:995).
Fraud is “to create a misjudgment or maintain an existing misjudgment to induce somebody
to make a contract” (Arzova 2003:118). Russel (1978) in Chi-Chi and Appah(2011:125) and
Bello (2001) remarks that, the term fraud is generic and is used in various ways. Fraud
assumes so many different degrees and forms that courts are compelled to context themselves
with only few general rules for its discovery and defeat.
Bozkurt, (2003) and Arzova, (2003) in Augustine and Famous (2013) argued that, fraud is
most likely to involve deliberate misrepresentation of information that is recorded and
reported by an entity. Fraud poses a serious problem from an audit perspective because it is
normally accompanied by efforts to cover, falsify or misdirect organization’s records and
reports. Most corporate frauds are complex in nature and difficult to detect by traditional
auditors, as they cannot provide absolute assurance of their detection. This is because of the
auditors “use of judgment, sample testing and the fact that evidences available to them are
persuasive rather than conclusive in nature” (ISA, 2009). Albrecht, (2005) in Enofe and
12
Atube (2013:65) argued that fraud is rarely seen. He continues to state that, the symptoms of
fraud are usually observed. The symptoms do not necessarily mean fraud is being undergone
as it may be caused by mistakes. According to Anyanwu (1993) in Onuarahet, al (2012)fraud
is an act or course of deception, deliberately practiced to gain unlawful or unfair advantage;
such deception directed to the detriment of another. Duffield and Grabosky (2001) as quoted
by Gary, Seow, Suwardy and Gay(2011) defined fraud as an act involving deceit (such as
intentional distortion of the truth or misrepresentation nor concealment of a material fact) to
gain an unfair advantage over another in order to secure something of value or deprive
another of a right. It occurs when a perpetrator communicates false statements with the intent
of defrauding a victim out of property or something of value (Vasiu and Vasiu, 2004).
Mukoro, et al (2011) quoting Edafehirhaye and Edafehirhaye (2008) defines fraud as
“tendency and propensity to do what is wrong, evil or harmful to one’s neighboring spite of
the knowledge of what is good. It is an attempt of subverting the rule of the game using trick
to take public fund and using them for one’s personal interest”.
2.1.2 Types and Classification of Fraud
Association of Certified Fraud Examiners (2012) reported that fraud has been divided into
three major categories as follows: corruption, assets misappropriation, and financial statement
fraud. From the existing cases, there are many ways that fraud can be perpetrated from the
simple misused of trust to the sophisticated computer based offence.
Anyanwu (1993), Ajide and Ezi (2000), Karwai (2002), Okafor (2004) and Adeniyi (2004)
quoted by Onuarahet, al (2012:125) summarize the types of fraud on the basis of methods of
perpetration include the following but not exhaustive as the methods are devised day in-day
out. These include defalcation, suppression, outright theft and embezzlement, tampering with
reserves, insider abuses and forgeries, fraudulent substitutions, unauthorized lending, lending
to ghost borrowers, kite flying and cross firing, unofficial borrowing, impersonation, teeming
13
and lading, fake payment. They further mentioned fraudulent use of the firm’s documents,
fictitious accounts, false proceeds of collection, manipulation of vouchers, dry posting, over
invoicing, inflation of statistical data, ledger accounts manipulation, fictitious contracts,
duplication cheque books, computer fraud, misuse of suspense accounts, false declaration of
cash shortages among others. The various forms of fraud include Bribery and extortion;
Fraud and embezzlement; Unlawful use of public assets for private advances; Over- and
Under-Invoicing; Payment of salaries and other benefits to ghost (non-existent) workers and
pensioners; Payment for air supply (goods or services not supplied or rendered) (Singleton,
Bologna, and Lindquist 2006).
Under-payment of taxes and duties on exports and imports through false invoicing or other
declarations; inflation of prices of goods purchase; Embezzlement of assets; court
pronouncements awarding financial compensations well in excess of any damage suffered;
deletion of documents or the whole case files; favoritism and patronage. Fraud may be
categorized into Corporate, management Fraud and fraud as a tort. Corporate fraud on the
other hand is any fraud perpetrated by or against a business corporation (Singleton, et al.
2006).
2.1.3 Concept of Corruption
The literature has documented an array of definitions on the concept of corruption emanating
from the perspective it is being considered and the orientation of the source of the definition
(Agbiboa, 2012; Egwemi, 2012; Mohammed, 2013; Ochulor, Metuonu, &Asuo, 2011; Yaru,
2009). These perspectives cover the dimensions of economic, political, bureaucratic, legal,
social and moral/ethical inclinations of the concept. Similarly, the orientation of the source of
the definition is premised on the disciplinary background of the author or the scholar
(Ochulor et al., 2011). The vast array of the definitions on the concept tend to converge on
one central theme which is manipulation of some sort to obtain personal benefits at the
14
expense of others (be it the state, organization or the citizens). More importantly, that notion
serves as the very starting point for the journey of defining corruption.
According to Atelhe & Agada (2014), corruption is a derivation of Latin origin, “corruptus”
which stands for; “to destroy”, and it has been variously described as a means of perversion
or a procedure of changing good into bad. However, Egwemi (2012) traces the origin of the
word differently. He sees the word corruption as originating from “rumpere”, a Latin verb
meaning “to break”. Whatever may be the origin of the word, corruption is obviously
portrayed in a negative posture as indicated by the two views.
The Black’s Law Dictionary on the other hand, as cited in Wells and Hymes (2012), describe
corruption as “depravity, pervasion, or taint; an impairment of integrity, virtue, or moral
principle; especially the impairment of a public official’s duties by bribery”. This definition
even though appears somewhat comprehensive in the sense that it touches on some of the
perspectives upon which corruption is viewed, it is however, skewed towards the legal aspect
of corruption. Similarly, the Oxford Advanced Learner’s Dictionary cited in Ochulor et al
(2011) sees it as a dishonest or illegal behavior, especially of people in authority. Azeez
(2011) contends that corruption is dishonest behavior or an immoral act that is deviation from
the societal norms, values, standards as well as committing vices against the popular public
wellbeing. Thus, in this regard, corruption is viewed from the legal and moral perspectives,
perhaps buttressing the position held by many that the term has a sort of legal connotation
(Rumyantseva, 2005).
Sadi &Abdullahi (2013) indicates corruption as deliberate violations for personal gainful
ends, of procedures legally, ethically and professionally either in the private or in public
sector. They observe that the personal gain or benefit derivable from corruption could be in
cash or in kind much in the same way as they could be psychological or even political. From
the social paradigm, Osoba (1996) holding onto his philosophical and moral presuppositions,
15
sees corruption as a variant of an anti-social behavior associated to an individual or social
unit conferring illegal or fraudulent benefits to the actors, inconsistently with the established
legal norms and the existing moral principles of the land capable of subverting or diminishing
the legitimate capacity of the authorities to cater in full for both the material and spiritual
wellbeing of the society justly and equitably. Lengthy and comprehensive this definition may
appear; it is however apparently prejudiced onto the moralists perspective as captured by it
proponent.
From the perspectives of the international organizations such as the World Bank and the
Transparency International (TI), corruption signifies illegal benefits derived by a public
office holder or any third party consequential of holding a public office (Atelhe&Agada,
2014). Another definition that gains wide population in the literature is Nye’s (1967)
definition. He defines corruption as “a behaviour which deviates from the formal duties of a
public role because of private-regarding (personal, close family, private clique) pecuniary or
status gains; or violates rules against the exercise of certain types of private-regarding
influence. This includes such behaviour as bribery (use of reward to pervert the judgment of a
person in a position of trust); nepotism (bestowal of patronage by reason of inscriptive
relationship rather than merit); and misappropriation (illegal appropriation of public resources
for private-regarding uses)” (Nye, 1967, p.419). Nye’s definition has served as a working
definition for a number of subsequent studies (Agbiboa, 2012).
2.1.4 The Nigerian experience
Essentially, to say that corruption abounds in Nigeria is indisputably stating the obvious
(Agbiboa, 2012; Malgwi, 2004). Corruption has been seen as the bane of Nigeria’s
development (Sadiq & Abdullahi, 2013) and the clog in the wheel of the Nigeria’s
development (Ijewereme, 2015). Discussing about the state of corruption in Nigeria can be
interesting and fascinating on one hand and very disturbing, annoying and shocking on the
16
other. Nigeria is a country that is richly blessed with abundant natural resources and
enormous qualitative human capital, yet the country remains largely underdeveloped
(Ogbeidi, 2012) consequent of corruption (Agbiboa, 2012). No wonder Ogbeidi (2012) states,
it is unanimously observed that corruption has to be put to a halt before finally grounding the
country down. Concurring with this position Atelhe & Agada (2014) posit that corruption is
at the verge of ruining Nigeria. Arguably, corruption has been described as the bane of
Nigeria’s quest for development (Ogbeidi, 2012; Sadiq & Abdullahi, 2013).
The severity and the intensity of political corruption in Nigeria is such that hardly a day
passes without the phenomenon being displayed or mentioned on the cover pages of
magazines and newspapers or even broadcast via electronic media or becoming topical issue
of discussion by the citizens (Inokoba & Ibegu, 2011). The scholarly literature is no
exception to this trend of increasingly becoming more interesting on the issue of societal
consequences of corruption. The peril now as observed by Inokoba & Ibegu (2011), is that
corruption appears much as a societal norm than an exceptional behavior so much; so that
people are beginning to think that hard work, integrity and honesty do no longer pay. In
Nigeria, corruption is tagged with all sorts of names such as; “kick-back”; “public relations
(PR)”; “up front”; “settlement” all with the intent of rationalizing the act by public officers
(Atelhe & Agada, 2014). Similarly, Egwemi (2012) mentions some euphemism used to
denote corruption in Nigeria to include; “scratch my back”; “long leg”; “chop-chop”; “bottom
power” and “kick-back”.
To this end therefore, Ibietan (2013) notes, corruption is the largest industry in Nigeria with
diverse practitioners and Obuah (2010), earlier states that approximately corruption stands at
about 20% of the Nigerian GDP. Obviously, this is very serious problem and it requires the
attention of all and sundry to salvage the image of the country from this stereotype. In fact
17
Obuah (2010) aptly describes Nigeria as a failed state for its inability to adequately address
the issue of corruption.
Accordingly, corruption has become the order of the day of doing things in Nigeria (Agbiboa,
2012; Casimir et al., 2014) and surprisingly it is not restricted only to the public sector as
private undertakings hardly thrive without involving in some forms of corrupt practices
(Agbiboa, 2012). Sadiq and Abdullahi (2013) posit that there are manifestations of corruption
in Nigeria and that it has a long history. It is, of course, indisputably very glaring and factual
that corruption thrives in Nigeria and that it is very devastating. Agbiboa (2012) eloquently
captures this scenario as reported by the Weekly Star of 15 May, 1983 that “keeping an
average Nigerian from being corrupt is like keeping goat from eating yam” (Agbiboa, 2012, p
329). This implies that relatively it is impossible to keep an average Nigerian from some
forms of corruption, no matter insignificant or inconsequential it may be. However, this may
not be absolutely the situation as some have reservation on this position (Malgwi, 2004) and
equally there are many Nigerians not disposed to the idea of corruption
2.1.5 Concept of forensic accounting
Coenen (2005) stated that forensic accounting involved the application of accounting
concepts and techniques to legal problem. It demands reporting, where the accountability of
the fraud is established and the report is considered as evidence in the court of law or in the
administrative proceedings (Joshi, 2003). Forensic accounting is the “integration of
accounting, auditing and investigative skills” (Zysman, 2004:2). It provides an accounting
analysis that is suitable to the court, which will form the basis of discussion, debate and
ultimately dispute resolution (Zysman, 2004:2).
Howard and Sheetz (2006) viewed forensic accounting as the process of interpreting,
summarizing and presenting complex financial issues clearly, succinctly and factually often
in a court of law as an expert. Forensic accounting is the specialty area of accountancy
18
profession that describes engagements that result from actual or anticipated disputes or
litigation. "Forensic" means "suitable for use in court of law" and it is to that standard and
potential outcome that forensic accountants generally have to work (Crumbly et al 2005).
Wells (2004) as quoted by Okoye and Gbegi (2013) pointed out that large accounting firms
have forensic accounting staff but they are use reactively rather than proactively. Wells
(2004) recommended that forensic accounting should be use during the audit to help identify
key fraud risk areas, and communicate them to the auditors for further consideration. Wells
(2004) argued that the presence of deterrent to fraud-inclined client for there would be a
perception that the likelihood of illegal activities being detected would increase.
2.2 THEORETICAL FRAMEWORK
The theory considered for this research is the theory of neo-patrimonialism. The term neo-
patrimonialism has been used to mirror the political problem experienced by most African
and developing countries (Roth, 1968). Neo-patrimonialism also involves the use of state
resources to get the loyalty of “godfathers” within a population. According to (Gambo, 2006)
“godfathers” could be described as the unilateral power and overwhelming influence of an
individual to decide who picks a party ticket and who eventually wins within the Nigerian
politics. In a bid to satisfy these “godfathers” public office holders squander state funds
(Ogundiya, 2009). The agitation by the political class that presidency should be rotated or
zoned among the various ethnic groups in Nigeria is believed to be a way for these ethnic
groups to have access to the wealth of the country (Ogundiya, 2009). The idea of zoning is
hoped to be a good representation of the centre, and that was why the idea of the federal
character was entrenched in the 1999 constitution of the federal republic of Nigeria
(Ogundiya,2009). The inclusion of the federal character in the 1999 constitution was not a
genuine motive but an avenue to settle differences among ethnic groups over the distribution
of resources within the Nigeria state (Ogundiya,2009). Success of each zone within the ethnic
19
groups is measured in terms of political appointments secured which determines the
percentage of share accruing from the “national cake” (Ogundiya, 2009). Therefore, it is a
normal norm to steal from the common wealth in Nigeria (Ogundiya, 2009). Neo-
patrimonialism as a theory has been used for this study to give a picture of what transpired
within the colonial era that has features of illegitimacy and exploitation, and the political
situation in Nigeria that involves corruption and cheating of the system that has denied the
population of basic amenities because of the selfish interest of the political class. Since the
colonial era, corruption has continued in Nigeria unabated (Ogundiya, 2009).
2.2.1 White Collar Crime Theory (Sutherland 1939)
Edwin H. Sutherland was the pioneer of White-collar crime theory that became part of the
English language when he gave a Presidential Address to the American Sociological Society
in 1939. Sutherland's talk, "The White Collar Criminal", rejected traditional theories of crime
that blamed poverty, broken homes, and disturbed personalities as the source of committing
white-collar crime. He noted that many of the lawbreakers in business were far from poor,
from happy family backgrounds, and all too mentally sound. After ten years of further
research, Sutherland published White Collar Crime (1949 in Braithwaite 1986). A revised
version was published in 1983. Sutherland (1983:7 in Braithwaite 1986:4) defined white-
collar crime as "a crime committed by a person of respectability and high social status in the
course of his occupation." Sutherland called attention to the fact that only members of the
lower class but including those of the upper class did not commit crimes. Sutherland was
much admired and criticized on the appeal made to social scientists to expand their focus to
include crimes by upper class offenders. Furthermore, the way that Sutherland defined and
studied white-collar crime was widely criticized by a host of social scientists and legal
experts. Much of the criticism galloped around five concerns that scholars had about
Sutherland’s use of the white-collar crime concept. These concerns included (I) conceptual
20
ambiguity, (ii) empirical ambiguity, (iii) methodological ambiguity, (iv) legal ambiguity, and
(v) policy ambiguity.
Despite the tremendous criticism faced by Sutherland on the proposition of WCCT, his work
did not fall in vain. Two young scholars, Marshall Clinard and Donald Cressey later became
famous in criminology and quickly shouldered Sutherland's work. In 1952, Clinard authored
a book on price control violations during World War II and Cressey 1953 wrote Other
People's Money, a study of embezzlement (Braithwaite 1986:5).
2.2.2 Fraud Triangle Theory (Donald R. Cressey 1950)
FTT was developed as an idea to investigate the causes of fraud. It was first coined by
Donald R. Cressey (1950) called the FTT (Cressey 1953 in Manurung and Hadian 2013:5).
Cressy in 1950 was troubled with the question of why people commit financial crime; this is
what gives him courage to examined 250 criminals in a period of 5months. Cressey conclude
that:
“Trust violators, when they conceive of themselves as having a financial problem which is
non-shareable,and have knowledge or awareness that this problem can be secretly resolved
by violation of theposition of financial trust. Also they are able to apply to their own conduct
in that situation verbalizations which enable them to adjust their conceptions of themselves
as trusted persons with their conceptions of themselves as users of the entrusted funds or
property” (Crassey 1953:742).
21
Pressure
Rationaliza Opportunit
tion y
Figure 2.1: Fraud triangle
Source: Cressey (1953) in Manurung and Hadian (2013)
FTT describes three factors that are present in every situation of fraud as follows:
1. Perceived pressure, incentives / pressures: This is the initial cause of committing fraud.
Pressure can includealmost anything that will motivate individual to commit fraud including
lifestyle, economic demands, and others - others include financial and non-financial term
(Manurung and Hadian 2013:5). SAS No. 99 indicates that there are four common types of
conditions on the pressure that can lead to cheating. The condition is financial stability,
external pressure, personal financial need and financial targets (Manurung and Hadian
2013:5).
2. Perceived opportunity: This is the ability of a fraudster to discover and exploit
organizational weaknesses to violate trust. Opportunities created by the internal control
weaknesses; poor corporate governance; lack of job rotation and poor supervision among
others. According to SAS 99, the chances of financial statement fraud can occur in three
categories of the condition. (i) the nature of the industry (ii) ineffective monitoring and
(iii)organizational structure.
3. Rationalization: This is the attitude, character or set of ethical values that allow certain
part(is) to commit acts of fraud, or different people in an environment that makes them quite
22
hit rationalize fraudulent actions.(Skousen et, al. 2009). Rationalization can also be a process
through which a fraudster justifies his evil course of action. Cressey’s findings reveal that all
the three elements (perceived pressure, opportunity and rationalization) must be present for a
fraudster to be able to violate trust in an organization (Cressey 1953).
2.2.3 Fraud Diamond Theory (David T. Wolfe and. Dana R. Hermanson 2004)
The FDT is an extension of FTT that was made by David T. Wolfe and. Dana R. Hermanson
in 2004. They believed that the FTT could be enhanced to improve both fraud prevention and
detection by considering an additional element “capability”. In addition to addressing,
perceived pressure, perceived opportunity, and rationalization, Wolfe and Hermanson (2004)
considered an individual’s capability. This includes personal traits and abilities that play a
major in whether fraud may actually occur even with the presence of the other three elements
(Wolfe and Hermanson 2004 in Tugas 2012) FDT can be illustrated using Figure 2
Pressure
Rationaliza Opportunit
tion y
Capability
Figure 2.2: Fraud diamond
Source: Wolfe and Hermanson (2004)
The FDT was first published in CPA Magazine in December 2004. The recognition of the
element of capability has involved the six factors expected to be achieved by the fraudsters as
suggested by Wolfe and Hermanson (2004).
23
i. A fraudster must have function or authority for him to be able to commit fraud.
ii. The fraud perpetrator must be intellectual to the extent that he/she can be able to
harness and exploit organizational weakness to commit fraudulent action.
iii. Fraudster must be egoistic and have strong confident and courage as he will not be
caught.
iv. The fraud perpetrator must be a person who can coerce and pursued other to commit
fraud by themselves or together with him.
v. Fraudster must be a person who can be able to deceive others or look at people into
their eyes to convincingly and comprehensively tell them lie.
vi. A fraudster must be able to conquer the stress by withholding and hiding the true face
of the matters well as frequent monitoring the issue in order to prevent detection.
Wolfe and Hermanson (2004:38) state, “Opportunity opens the doorway to fraud, and
incentive (i.e. pressure) and rationalization can draw a person toward it. However, the person
must have the capability to recognize the open doorway as an opportunity and to take
advantage of it by walking through, not just once, but repeatedly”.
2.2.4 Idealistic Theory
The literature has documented a number of theories explaining corruption and corrupt
practices in Nigeria. According to Ijewereme (2015) five theories stand out explain why
corruption thrives particularly in the developing nations. These are the idealistic theory, the
theory of resource curse, the theory of two publics, low risk- high benefit theory and of
course, the anomie theory. The idealistic theory presupposes that societal behavior and
culture are influenced by people’s ideas prevalent. Thus, selfish ideas lead to deviant
characters such as bribery, corruption and nepotism. Arguably, corruption is a product of
gross pervasion of moral values in societies. Two views are discernible from this line of
argument; the traditionalist and the modernist schools of thought. The traditionalists attribute
24
the cause of corruption to the erosion and incursion of the traditional value system
particularly by the west. This of course, characterizes to a large extent the African political
economy whereby all African woes are attributed to the Europeans vis-à-vis colonialism.
From the modernists’ perspective corruption is viewed as emanating from the African
cultural and religious practices. The obligation to offer gifts and to protect ones’ ethnic
members at all cost are strong movers of corruption as claimed by the modernists (Ijewereme,
2015).
The theory of resource curse explains corruption in terms of natural endowment that often
turns out to be a curse instead of blessing to the societies endowed. Often times, the presence
of natural resource in entities leads to abandoning of other viable sector of more enduring
nature such as taxation as veritable sources revenue. This obviously leads to over
concentration of a single sources entrusted in the hands of few elites which largely
misappropriate the national resources through corrupt practices (Ijewereme, 2015; Obuah,
2010). The theory of two publics identifies two masters being served by public servant in
Nigeria. The two publics refer to the core civil service and the primordial public comprising
the civil servants ethnic, tribal, religious and societal affiliations. It notes that civil servants
tend to favor the primordial public at the expense of the civil service through corrupt and
illegal practices. The low risk-high benefit theory stipulates that people indulge into
corruption based on what may be termed as the cost – benefit formula. Often, inadequate
sanctions and punishments cause the risk to be extremely low compared to the benefit
accruing to the act. It follows that many may be willing to undertake that low risk that they
believe can afford them multiple benefits in return (Ijewereme, 2015). Lastly, the anomie
theory postulates that corruption is the product of societal pressures on individuals,
particularly public office holders. The society often sets unrealistic goals for individuals to
25
attain and those who cannot meet up resort to whatever means including corrupt avenues to
actualize those goals.
Contrary to that, he comments; other scholars observe the cause of corruption inherent in the
cultural and religious predisposition of Africa. On the cultural aspects, seen as promoting
corruption, Egwemi (2012) opined culturally, a beneficiary of a certain favour granted is
expected to show some appreciation. It therefore follows that this cultural practice is expected
to surface within the public aspect practice. Thus showing appreciation to a public official for
the official responsibilities discharged is seen as normal in itself within the African point of
view.
The fourth cause as provided by Obuah (2010), is imitation whereby a public official is
poised at imitating others at all costs whether one can afford their lifestyle or not. Obviously,
this is a strong motivation for corruption as many public officers in the developing nations
have fallen victims of corruption through their quest of blindly imitating the lifestyle from the
developed societies. These public officials ought to have considered the peculiarities of their
society’s vis-à-vis the prevailing economic situation as well as their individualistic statuses.
Last on Obuah's (2010) explanation theorizing the causes of corruption is the political and
institutional centralization. According to this line of explanation, the control of political
offices and institutions from the central authority or government provide a veritable avenue
for cultivating corruption at both the centre and the peripheral levels.
2.3 LITERATURE ON THE SUBJECT MATTER
According to Jafaru (2011), forensic and investigative accounting should be seen as the
application of financial skills and investigative mentality conducted within the context of the
rules of evidence to resolve unresolved issues. Bologna and Lindquist (1995) as quoted by
Chariri (2009) stated that as an investigator, a forensic accountant can be seen as those who
are specialists in fraud detection, and particularly in documenting exactly the kind of
26
evidence required for successful criminal prosecution; able to work in complex regulatory
and litigation environments; and with reasonable accuracy, can reconstruct missing,
destroyed, or deceptive accounting records. Meanwhile, as economists, forensic accountants
are particularly effective at economic loss, damage, and social harm estimates; familiar with
the assumptions, algorithms, and calculations in econometric models and opportunity cost
scenarios; they can measure and quantify such things as loss of goodwill and reputation.
Finally, as appraisal experts, forensic accountants should be able to reliably express informed
opinion on matters of business value, based on generally accepted theory; effective at
evaluating the historical and projected degrees of risk and return of any going concern as well
as any and all financial transactions involving assets, property, taxes, and equities
2.3.1 Forensic Accounting, Crime and Corruption
To be successful as a forensic accounting professional, one must be detail oriented, persistent,
ambitious, and highly organized. Forensic accounting also requires a great deal of creativity,
since you must often explain complex financial concepts to an audience that lacks basic
accounting knowledge. It is not surprising that the American agency, the Federal Bureau of
Investigation (FBI) confirmed that ‘one key element was the creation of a standardized,
professional investigative support position known as the forensic accountant in 2009’. The
forensic accountant at FBI conducts the financial investigative portion of complex cases
across a wide variety of Bureau programmes including investigating terrorists, spices, and
criminals of all kinds who are involved in financial wrongdoings. The agency went ahead to
list the responsibilities of forensic accountants to include:
 Conducting thorough forensic financial analysis of business and personal records and
developing financial profiles of individuals or groups identified as participating in
suspicious or illegal activity;
27
 Participating in gathering evidence and preparing search warrants/affidavits
associated with financial analysis;
 Accompanying case agents on interviews of subjects and key witnesses in secure and
non-confrontational settings;
 Identifying and tracing funding sources and interrelated transactions;
 Compiling findings and conclusions into financial investigative reports; and
 Meeting with prosecuting attorneys to discuss strategies and other litigation support
functions and testifying when needed as fact or expert witnesses in judicial
proceedings.
The agency concluded that ‘today around 15 percent of agents employed by the
bureau are forensic accountants’ (FBI, 2012) In essence therefore forensic accounting can be
used to investigate and curb all manner of financial crimes and terrorism sponsorship.
2.3.2 Effects of Corruption in Nigeria
The endemic and devastating nature of corruption in Nigeria certainly leads to grave and
outrageous consequences. From gross underdevelopment in all ramifications spanning to near
complete absence of the basic amenities to abject poverty of the majority of the populace
(Ijewereme, 2015). Pathetically, corruption is tipped to constitute fundamentally the factor
accounted for the continued absence of good governance and the sustained socio-economic
underdevelopment of Nigeria over the years (Ogbeidi, 2012). According to Ibietan (2013)
and Inokoba&Ibegu (2011), corruption leads to the continued low rating of Nigeria’s Human
Development Index (HDI), infrastructural decay, instable socio-economic stance, denial from
Foreign Direct Investment (FDI) and general underdevelopment in all its ramifications. Also,
on the consequence of corruption on the Nigerian soil, Atelhe&Agada (2014) explains
further; corruption causes complete distortion of public policies, poor governance, denies the
citizens the basic necessities of life. Corruption misdirect capital that would otherwise be
28
invested, misdirect budgetary allocations from the provisions of qualitative education,
affordable health facilities and programmes and the basic social infrastructures.
Adding more weight to this line of argument of the consequences of corruption in Nigeria
Ogbeidi (2012) posits, corruption influences manipulation of government expenditure leading
to misplacement of priorities. Instead of executing viable essential projects, corrupt
governments indulge in difficult managing projects such as the airports, stadia and the like.
Atelhe&Agada (2014) provide a more detailed analysis on how corruption affects ordinary
Nigerians in their day-to-day pursuits. According to them, corruption brings about keeping of
files for long time in offices, extortions by police at checkpoints and tollgates, slow
movement of vehicles on high ways, congestions at ports, long queues at immigration offices
in order to obtain passports, long queues at petrol stations, the problem of ghost workers and
election scandals. Similarly, Ogbeidi (2012) observes the vital sectors of education and health
to be the verge of collapsing due to underfunding consequent of corruption. He claims that
the most revealing shocking consequence of corruption is perhaps the inability of the
Nigerian government to harness its potentials economically and other spheres in spite of the
abundant resources the country is endowed with.
2.3.3 Forensic Accounting: The way forward
Forensic accounting emerged as an academic and practical field of endeavour to address the
ineffectiveness and inconsistencies of the traditional accounting and auditing practices in
spotting out fraud in financial reporting. Essentially, forensic accounting functions to mitigate
the menace of fraud through combination of accounting and auditing skills as well as
incorporating legal procedures to provide an expert witness and other litigation services.
Hence, forensic accounting is the ideology in vogue as far as anti-fraud control mechanisms
are concerned. Chi-Chi and Ebimobowei (2012), see forensic accounting as having the
requisite accounting, auditing and investigative skills to effectively determine whether fraud
29
has occurred and up to the point of establishing a case against the fraudster in any
organization. Hence, Forensic accountants are seen as specialists who are experts and
experienced in performing fraud audits and their main objective is to investigate suspicions of
fraud (Singleton et al. 2006). Interestingly, forensic accounting is a specialized form of audit
and investigative skills and knowledge for the prevention and detection of fraud and in
certain cases, the conclusion drawn by forensic accountants will be used in court of law to
resolve disputes(Omar et al., 2013). Singleton and Singleton (2010) observe that forensic
accounting has to do with the comprehensive fraud investigation consisting of preventing
frauds and analysing antifraud control, the audit of accounting records in search of evidence
of fraud and fraud audit. Adegbie and Fakile(2012) observe that, this has become necessary
owing to the inability of the traditional auditing and other internal control mechanisms to
appropriately spot fraud in organizations. Conventional accounting and auditing text are
premised with little requisite skills for both the external and internal auditors to reveal fraud
(Carnes &Gierlasinski, 2001). Equally, the inadequacy of the litigation services which often
leads to inaccurate judgments by lawyers and judges (Adegbie&Fakile, 2012). To solve this
problem, Digabriele (2008) suggests the integration of forensic accounting skills into the
external audit functions so that discovering fraud will be an integral responsibility of an
auditor. Ever since its inception of forensic accounting, the accounting and auditing literature
has documented a number of researches on the inclusion of forensic accounting in the
accounting and auditing curricula (e.g.Bhasin, 2013; Bologna & Lindquist, 1987; Carpenter,
Durtschi, & Gaynor, 2011; Efiong, 2012; Hao, 2010; Ramamoorti, 2008) on one hand.
Similarly, from the other angle of the divide, the need for adopting and adapting forensic
accounting in both the public and private practices has been identified (Gbegi&Okoye, 2013;
Ghazali, Rahim, Ali, &Abidin, 2014; Malusare, 2013; Modugu&Anyaduba, 2013), as the
ultimate solution to addressing the issue of fraud and corruption.
30
2.3.4 Means to an end of corruption
Nigeria is a country synonymous with corruption as many cases of corruption are being
reported on daily basis. Essentially, not only Nigeria, many of the developing economies are
also characterized by high incidences of fraudulent and corrupt practices particularly in the
public sector. Kasum (2009) observes corruption has affected the lives of citizens of third
world countries negatively, it is engraved in the systems, it is alarming and seriously
devastating. However, Nigeria’s case is special owing to the fact both the magnitude and the
frequency of occurrence of the menace are very high (Agbiboa, 2012; Gbegi & Okoye, 2013;
Modugu & Anyaduba, 2013; Nekede & Oko, 2013). Corruption has been the bane of
Nigeria’s underdevelopment for decades, a common reason advanced for change of
governments since independence in 1960 (Agbiboa, 2012) and in fact the just concluded
election of March 28, 2015 (Fafawora, 2015) has vindicated this position. Nigeria’s case is so
unique, in the sense that in spite of being among the top world’s oil producers in addition to
being endowed with other natural and human resources, majority of Nigerians are leaving in
abject poverty (Agbiboa, 2012; Malgwi, 2004).
Equally, Nigeria has been constantly rated very low on the corruption perception index of the
Transparency International over the years (see table 1). Nigeria’s ranking on the index has
been much skewed towards the most corrupt nations on earth. A cursory review of the
Nigeria’s performance on the index reveals the following result.
31
Table 2.1: Nigeria’s stance on the corruption perception index of the TI over ten years
S/N Year Rank Score (%)
1 2005 152 out of 159 countries 19
Source: Transparency International (2005 – 2014)
Impliedly, the index reveals Nigeria as scoring below 30% for the years considered, thus
indicating high-perceived rate of corruption in the country. Similarly, from the index we can
deduce that the level of corruption in Nigeria is higher than averagely 130 countries from the
ranking yearly. Obviously, this scenario presents a very negative posture of the country’s
corruption stance. Now the issue before everyone and possibly us is not just the prosecution
and conviction of the corrupt officers, but how do we ensure that corruption is ultimately put
to a halt and that offenders face appropriate sanction and punishment. Obviously, this is
where this study believes forensic accounting and in particular, forensic accounting
investigation comes in. Studies such as (Asogwa, 2014; Bhasin, 2013; Chi-Chi &
Ebimobowei, 2012; Efiong, 2012; Gbegi & Okoye, 2013; Modugu & Anyaduba, 2013) have
identified forensic accounting as the effective means of fraud/ corruption prevention and
detection in Nigeria, but still fraud/corruption persists. It therefore follows that accurate and
32
in depth fraud/corruption investigations have to be carried in order to appropriately establish
genuine fraud/corruption cases against fraudsters otherwise the whole process will be in vain.
Carnes and Gierlasinski (2001) report, only 2% of the reported financial fraud went to trial,
20% of the cases were dismissed and the remaining percentage of the cases were settled out
of court. Similarly, many cases against corrupt officers could not be established in the court
of law partly as a result of improper investigation, and on the other hand due to the absence
of combined skills of accounting/auditing and legal/litigation services by the investigator
(Adegbie & Fakile, 2012; Carnes & Gierlasinski, 2001; Efiong, 2012; Gbegi & Okoye, 2013;
Lokanan, 2014). However, with the advent of forensic accounting a sigh of relief is expected
as observed by (Imoniana et al., 2013). They maintain that forensic accounting marks the
beginning of a new era and with its investigative techniques perpetrators of fraud and
corruption can easily be brought to limelight. Curtis (2008) noted that one of the grey areas
where forensic accounting is required is fraud/corruption investigation. Forensic accounting
approach specifically encompasses all other forms of investigation that have bearing with the
discovery of fraud/corruption. The ever increasing as well as the sophistication of fraudulent
and corrupt practices (Gbegi & Okoye, 2013; Modugu & Anyaduba, 2013) require the use of
forensic accounting as the necessary means for successful fraud /corruption investigation and
prosecution of fraudsters/corrupt cases (Adegbie & Fakile, 2012; Carnes & Gierlasinski,
2001; Chi-Chi & Ebimobowei, 2012).
2.3.5 History of Corruption in the Public Sector in Nigeria
The history of corruption in the public sector in Nigeria can be traced to the era of the
colonial masters. The colonial masters were successful in colonizing the country via the use
of both direct and indirect rule by engaging the services of local officers from different paths
of the country. Those whose services were engaged were not indigenes of the region assigned
to them. Some of the local officers abused their newfound power and influence for their
33
selfish interest (Owolabi, 2007). After independence, the politicians that were elected into
office and other public servants exhibited traces of corrupt tendencies. During the period of
election, there was manipulation of votes while some went to the extent of hiring thugs to
intimidate and sometimes eliminate political opponents. At the assumption of Office, these
public officials were more particular about their selfish interest at the expense of the public
(Owolabi, 2007).
The military in 1966 took over power citing the massive corruption of public officials as the
major reason for their intervention. However, the military regime proved to be worse than
their civilian counterparts which ultimately led to the proliferation of corruption in the
country as each military regime was identified with arbitrary use of power, non-transparency
and lack of being accountable. The foregoing trend created a culture of corruption within
government while public officers saw it as an avenue to continue with their financial
recklessness (Owolabi, 2007).
34
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Area of Study
The University College Hospital was established by an Act of Parliament in November 1952
in response to the need for the training of medical personnel and other healthcare
professionals for the country and the West African Sub-Region. The establishment of the
Hospital was a sequel to a Visitation Panel in 1951 to access the clinical facilities for the
clinical posting of medical students registered for M.B.B.S. degree of the University of
London.
The University College Hospital (UCH) is strategically located in Ibadan, then the largest city
in West Africa, which is also the seat of the first University in Nigeria. The physical
development of the hospital commenced in 1953 in its present site and was formally
commissioned after completion on the 20th November 1957. The Hospital was initially
commissioned with 500 bed spaces, but presently the Hospital has more than 850 bed spaces
and 650 examination couches. The current bed occupancy ranges from 55 – 60%.
The Hospital, at inception in 1948 prior to the Act of Parliament, had two clinical
Departments (Medical and Surgery). However, the Hospital has evolved to accommodate
about 60 Departments, among which is the first Department of Nuclear Medicine in Nigeria
commissioned by the Honourable Minister of Health, Professor Eyitayo Lambo on 27th April
2006. The Hospital and the University of Ibadan function in excellent symbiosis and it is
impossible to think of one without the other in the areas of health manpower training,
research and clinical service.
35
The Hospital is primarily an ideal tertiary institution but has appendages of the community
based outreach activities at Igbo Ora, Abedo, Okuku, Sepetiri, Elesu, Jago where the Hospital
offers secondary and primary health.
There are many departments in University College Hospital Ibadan, my focuses base on
Finance and Account, which is currently headed by Mrs.J.O.Matthew, Deputy Director,
Finance and Accounts and ably assisted by other officers. The department is functionally and
directly responsible to the Chief Medical Director through the office of the Director of
Administration.
Under this department, they are 20 units namely: HOD office, Bank Reconciliation, Budget
Section, Cash Book, Catalab, Debt Recovery, Fees, Final Account, Fixed Asset, Investment,
NHIS Section, Payment Suites, Private Suites, Revenue/ Reconciliation, Salary (IPPIS
Regular and Non Regular), Account Annex (Sepeteri), Tax Section, Teller Unit, Vote Control
Section, Voucher Section.
The procedure of the study is descriptive and it belongs to the generic research design called
survey design (Adepoju, 2013) the population involves staff in five selected units under the
Finance & Account in the University College Hospital, UCH, Ibadan
3.1 Research Design and Sources of Data
The section that could have referred to as either research design or research method is very
critical to the entire research process. It is in this section that the research stamps his
scientific status on the process. A research design therefore is a blue print or scheme that is
used by the research for specific structure and strategy in investigating the relationship that
exist among variables of the study as to enable time or her collect the data which will be used
for the study. Research designs are basically of four types, which are “experimental,
historical, survey and case study research design”. For the purpose of this study, I adopted the
36
case study approach in evaluating the impact of financial accounting on the business
performance of organization. Both primary and secondary sources of data were adhered to on
the course of this study and the attitude and responses of those interviewed were noted.
3.1.1 Primary Sources of Data
The primary sources of data are the sampling or study unit from which information is
obtained on a first-hand basis. It is very important to note here that the researcher did not
adopt any rigid method in the collection of data; rather the data for the research were
collected in response to the requirements of the research problem. Creativity and judgment
also played a vital role at this stage of the project, bearing in mind the final judgment will be
partly constrained be the type and values of information collected. The primary data were
gathered from the following sources:
a. Oral interview: Personal interviews were conducted in addition to the
questionnaires that were duly administered. The information obtained through the
oral interview was use in cross checking the responses to the questionnaire. It
either affirmed or disproved the data collected.
b. Unstructured interviews: Unstructured interviews were also collected out through
informal discussions with various staff members at different levels of operations.
c. Actual field investigation: The researcher was privileged to see the annual reports
in order to fully comprehend their performance as well as its reporting style.
3.1.2 Secondary Sources of Data
Library and internet materials provided the bulk of the secondary research data collected by
the researcher. These resource materials were used to review extensively the facts and the
reporting components of Nigerian Breweries Plc. For the purpose of obtaining these
secondary data the following academic libraries and website were used:
37
1. Wikipedia.com
2. Google.com
3. The Library
In summary, these sets of data gathered which includes:
- Data from and interview, internet and library materials
- Data from the compilation of other related research work previously conducted
The data gathered was used at three different stages as follows:
- In anticipation of these data, the question on the questionnaires were design in order
to ensure that the respondents will confirm these data
- The data also formed the basis upon which the review of related literature was carried
out
- They also formed part of the analysis that will be carried out in chapter four which led
to conclusion which was later arrived at in chapter five.
3.2 Study Population and Determination of Sample Size
The sample size of this study is made up of 132 respondents while the sampling procedure
adopted is random sampling because it is the generally acclaimed method of probability
(Adepoju, 2013; Abubakar, 2011). Proportional stratified random sampling was adopted. The
sample was divided into three strata with each stratum comprising of 44
3.3 Instrumentation
A questionnaire is a composition of carefully selected and ordered questions, statements
presented to the respondents in order to obtain information or data. Data required testing the
hypothesis. This test will provide answers to the questions raised in the research problem.
The questionnaires were administered based on the non-random selection of the persons as
contained in the sample. This was done in such a way as to get the desired result. The
38
questionnaire contains fifteen (15) questions. The questions are from of close-ended where
respondents are expected to give their opinion freely without having to choose from any
alternative.
Methods for instrument for data collection also include personal observation. Personal
observation is the process of data collection, personal tour to the internal accounting
department, where the case study was made. The researcher conducted random checking is
into various departments for any easy observation and keeping custody of receipts and other
relevant documents/information.
3.4 Procedure for Data Collection and Data Analysis
Collection of data refers to the research instruments used by the researcher to collect
whatever data needed. The research instruments used in this research include: questionnaires,
internet, interviews and library research. Questionnaires were employed by the researcher
because it is most practical, economical and easiest way of obtaining information about
events. They also helped in collecting information that are valid interview schedule was made
use of by the researcher because of its usefulness in following up on unexpected result in
order to validate other method or problem motivation of respondents and their reasons for
responding the way they did. The primary data gathered were effectively and extensively
employed in the next chapter to test the formulated hypothesis.
The researcher translated the data into simple percentages. This was to enable an inferential
statement to be made about any relationship. The formulated hypotheses were tested using
chi-square (X2) test statistics which measures the significance of the difference between the
observed set of frequencies. The computations were done using the chi-square formula which
is:
X2 =∑ (of - ef)2
ef
39
Where, of = observed frequency
ef = expected frequency
The research hypotheses earlier formulated in the chapter one were tested in chapter four for
acceptance or rejection using the Chi-square statistical techniques.
3.5 Limitations of the Study
Limitations envisage in this research work are:
i. Restriction on data generation: the data obtained was restricted to the case study
ii. Time frame of this research work is another limitation as more time may be required to
get up to date information from bank and clients
iii. Also there might be financial and transportation congestion constraints to this study
40
CHAPTER FOUR
DATA ANALYSIS, FINDINGS AND DISCUSSION
4.0 Introduction
This chapter details the analysis and presentation of the data collected during the field survey
using questionnaires. One hundred and fifty (150) questionnaires were distributed to the
respondents that made up the sample size. The researcher was able to collect One hundred
and thirty-two (132) questionnaires back, which represents 88% rate of return.
This chapter will at least present the data collected in form of table to facilitate easy
understanding analysis and discussion of the respondents’ view in relation to issues raised in
the questionnaires. These enables the researcher to form opinion based on the analysed data.
Relevant question from section B of the questionnaires are gathered and analysed for the
purposes of decision making either in acceptance or in rejection of relevant hypothesis of the
study.
4.1 Findings of the study
Section A: Demographic of the respondents
Table 4.1.1: Gender of the respondents
Sex Frequency Percentage (%)
Male 80 60.6
Female 52 39.4
Total 132 100
Source: Field Survey, 2017
From the above table it shows that 60.6% of the respondents are male and 39.4% of them are
female.
41
Table 4.1.2: Age of the respondents
Age Frequency Percentage (%)
20 – 30 years 40 30.3
31 – 40 years 55 41.7
41 and above 37 28
Total 132 100
From the data above, the responses show that 40 respondents between the ages of 20-30 years
representing 30.3%, 55 between the ages of 31-40 years representing 41.7%, and 37 between
the ages of 41 and above representing 28% were administered.
Table 4.1.3: Status of respondents
Marital status Frequency Percentage (%)
Single 46 34.8
Married 73 55.3
Divorced 5 3.8
Widowed 8 6.1
Total 132 100
The above table shows that 46 are single representing 34.8%, 73 are married representing
55.3%, 5 of the respondents are divorced representing 3.8 while 8 of the respondents
represents 6.1%.
42
Table 4.1.4: Educational Background of the Respondents
Qualification Frequency Percentage (%)
Ph.D 5 3.8
M. Sc. 15 11.4
B.Sc./H.N.D 70 53
OND/NCE 42 31.8
Total 132 100
The above table shows that 5 of the respondents are Ph. D. holders representing 3.8% and 15
are M.Sc. holders representing 11.4%, 70 of the respondents are B.Sc./HND holders
representing 53% while 42 of the respondents are OND/NCE holders representing 31.8%
Table 4.1.5: Years of Experience of the Respondents
Years of Experience Frequency Percentage (%)
1–5 20 15.2
6 – 10 34 25.8
11 – 15 50 37.8
16 and above 28 21.2
Total 132 100
From the table above it shows that the 20 respondents representing 15.2% has been working
with the company for period of 1 – 5 years, 34 of the respondents representing 25.8% have
been employed by the company for period of 6 – 10 years, 50 of the respondents representing
37.8% has been employed for 11 – 15 years, while 28 of the respondents representing21.2%
have been working with the company for 16 years and above.
43
Section B: Analysis of research question
Table 4.1.6: Is corruption truly rampant in the accounting firm in Nigeria?
Response Frequency Percentage (%)
Strongly agree 72 54.5
Agree 30 22.7
Strongly disagree 16 12.1
Disagree 14 10.7
Total 132 100
The table above shows that 72, (54.5%) of the respondents strongly agree that corruption is
truly rampant in the accounting firm in Nigeria, 30, (22.7%) of the respondents agreed, 16,
(12.1%) of the respondents strongly disagree while14, (10.7%) of the respondents disagree.
This implies that majority of the respondents in this research agreed that corruption is truly
rampant in the accounting firm in Nigeria.
Table 4.1.7: Is level of corruption in Nigeria a function of bad governance?
Agree 38 28.7
Disagree 14 10.6
Total 132 100
The table above shows that 60, (45.5%) of the respondents strongly agree that the level of
corruption in Nigeria is a function of bad governance,38 (28.7%) of the respondents agree
that the level of corruption in Nigeria is a function of bad governance,20, (15.2%) of the
44
respondents strongly disagree that the level of corruption in Nigeria is a function of bad
governance while 14, (10.6%) of the respondents disagree. This implies that majority of the
respondents in this research strongly agree that the level of corruption in Nigeria is a function
of bad governance.
Table 4.1.8: Do you think that the accounting firm is capable or able to fight corruption in
Nigeria?
Strongly agree 33 25
Agree 44 33.3
Disagree 19 14.4
Total 132 100
The table above shows that 33, (25%) of the respondents strongly agree that the accounting
firm is capable or able to fight corruption in Nigeria,44, (33.3%) of the respondents agree that
the accounting firm is capable or able to fight corruption in Nigeria,36, (27.3%) of the
respondents strongly disagree that the accounting firm is capable or able to fight corruption in
Nigeriawhile19, (14.4%) of the respondents disagree. This implies that majority of the
respondents in this research agree that the accounting firm is capable or able to fight
corruption in Nigeria.
45
Table 4.1.9: Do you think that the use of accounting information will enhance our society in
dealing and fighting with the problem of corruption?
Agree 32 24.2
Disagree 24 18.2
Total 132 100
The table above shows that 40, (30.3%) of the respondents strongly agree that the use of
accounting information will enhance our society in dealing and fighting with the problem of
corruption, 32, (24.2%) of the respondents agree, 36, (27.3%) of the respondents strongly
disagree while24, (18.2%) of the respondents disagree. This implies that majority of the
respondents in this research strongly agree that the use of accounting information will
enhance our society in dealing and fighting with the problem of corruption.
Table 4.1.10: Do you think that accountants are the main role/lead to curb or fight corruption
in Nigeria?
Agree 38 28.8
Disagree 10 7.6
Total 132 100
46
The table above shows that 55, (41.7%) of the respondents strongly agree that accountants
are the main role/lead to curb or fight corruption in Nigeria,38, (28.8%) of the respondents
agree, 29, (21.9%) of the respondents strongly disagree while10, (7.6%) of the respondents
disagree.
Table 4.1.11: Do you think that the effectiveness of accounting firm will be able to eradicate
corruption in Nigeria?
Agree 40 30.3
Disagree - -
Total 132 100
The table above shows that 72, (54.5%) of the respondents strongly agree that the
effectiveness of accounting firm will be able to eradicate corruption in Nigeria, 40, (30.3%)
of the respondents agree while 20, (15.2%) of the respondents strongly disagree.
Table 4.1.12: Does accountant search for evidence of criminal conduct or assist the
determination of or rebuttal of claimed damages?
Agree 33 25
Disagree 25 19
Total 132 100
47
The table above shows that 39, (29.5%) of the respondents strongly agree that accountant
search for evidence of criminal conduct or assist the determination of or rebuttal of claimed
damages,33, (25%) of the respondents agree, 35, (26.5%) of the respondents strongly
disagree while25, (19%) of the respondents disagree.
Table 4.1.13: Does accounting provide assistance with the protection and recovery of assets?
Agree 26 19.7
Disagree 24 18.2
Total 132 100
The table above shows that 42, (31.8%) of the respondents strongly agree that accounting
provide assistance with the protection and recovery of assets, 26, (19.7%) of the respondents
agree, 40, (30.3%) of the respondents strongly disagree while 24, (18.2%) of the respondents
disagree.
Table 4.1.14: Doesaccounting provides coordination of other expert including, private
investigations, forensic document examiner, consulting engineers in fighting corruption?
Agree 27 20.5
Strongly disagree 37 28
Disagree 22 16.7
Total 132 100
48
The table above shows that 46, (34.8%) of the respondents strongly agree that accounting
provides coordination of other expert including, private investigations, forensic document
examiner, consulting engineers in fighting corruption,27, (20.5%) of the respondents agree,
37, (28%) of the respondents strongly disagree while22, (16.7%) of the respondents disagree.
Table 4.1.15: Do accountants review the relevant documentation to form an initial
assessment of the case in an identified area of loss?
Agree 38 28.8
Disagree 8 6.1
Total 132 100
The table above shows that 46, (34.8%) of the respondents strongly agree that accountants do
review the relevant documentation to form an initial assessment of the case in an identified
area of loss, 38, (28.8%) of the respondents agree, 40, (30.3%) of the respondents strongly
disagree while8, (6.1%) of the respondents disagree.
49
Table 4.1.16: Do accountants attend the examination for discovery to review the testimony,
assist with the understanding the financial issues and to formulate additional questions to be
asked during curbing corruption?
Agree 30 22.7
Disagree 22 16.7
Total 132 100
The table above shows that 25, (18.9%) of the respondents strongly agree that accountants
attend the examination for discovery to review the testimony, assist with the understanding
the financial issues and to formulate additional questions to be asked during curbing
corruption, 30, (22.7%) of the respondents agree, 55, (41.7%) of the respondents strongly
disagree while 22, (16.7%) of the respondents disagree. This implies that majority of the
respondents in this research strongly disagree that accountants attend the examination for
discovery to review the testimony, assist with the understanding the financial issues and to
formulate additional questions to be asked during curbing corruption
50
Table 4.1.17: Do accountants obtain documents necessary to support or refute a claim?
Strongly agree 33 25
Agree 40 30.3
Strongly disagree 37 28
Disagree 22 16.7
Total 132 100
The table above shows that 33, (25%) of the respondents strongly agree that accountants
obtain documents necessary to support or refute a claim, 40, (30.3%) of the respondents
agree, 37, (28%) of the respondents strongly disagree while 22, (16.7%) of the respondents
disagree.
Table 4.1.18: Do accountant provides relevant parties with report to judge the expert’s
opinion and the basis for curbing corruption?
Agree 42 31.8
Disagree 20 15.2
Total 132 100
The table above shows that 39, (29.5%) of the respondents strongly agree that accountant
provides relevant parties with report to judge the expert’s opinion and the basis for curbing
corruption,42, (31.8%) of the respondents agree, 31, (23.5%) of the respondents strongly
disagree while20, (15.2%) of the respondents disagree.
51
Table 4.1.19: Does auditor leaves audit trail in carrying out his investigation?
Agree 27 20.5
Disagree 29 21.9
Total 132 100
The table above shows that 45, (34.1%) of the respondents strongly agree that auditor leaves
audit trail in carrying out his investigation, 27, (20.5%) of the respondents agree, 31, (23.5%)
of the respondents strongly disagree while 29, (21.9%) of the respondents disagree. This
implies that majority of the respondents in this research agree that auditor leaves audit trail in
carrying out his investigation.
Table 4.1.20: Is accountant’s report designed to support the curbing of corruption in Nigeria?
Agree 37 28
Disagree 18 13.6
Total 132 100
The table above shows that 55, (41.7%) of the respondents strongly agree accountant’s report
is designed to support the curbing of corruption in Nigeria,37, (28%) of the respondents
agree, 22, (16.7%) of the respondents strongly disagree while18, (13.6%) of the respondents
52
disagree. This implies that majority of the respondents in this research strongly agree that
accountant’s report are designed to support the curbing of corruption in Nigeria.
4.2 Test of Hypotheses
The researcher at this point tests the hypotheses formed earlier in other to accept or reject
them and as well as determining the extent of their reliability. In other to achieve this, the
researcher used Chi-Square method.
Hypothesis One:
H1: The level of corruption in the Nigeria polity is a function of bad governance and
corrupt individuals
H0: The level of corruption in the Nigeria polity is not a function of bad governance and
corrupt individuals
The hypothesis can be tested by using table 4.1.7 where a total of 60 respondents representing
45.5% strongly agree that the level of corruption in Nigeria is a function of bad governance,
38 respondents representing 28.7% agree, 20 of the respondents representing 15.2% strongly
disagree while 14 representing 10.6% of the respondents disagreed.
Test Statistics:
Formula X2 = ∑ (oi – ei)2
ei
Where X2 = Chi-Square
Oi = Observed frequency
Ei = Expected frequency
Assumption:
The level of significance used is 5%. That is 0.05
Degree of Freedom:
The degree of freedom is given as thus;
53
DF = (R – 1) (C – 1)
Where, R = Rows
C = Columns
DF = (2 – 1) (4 – 1)
DF = 1x3
= 3
NOTE: The value of 3 at 0.05 significant level is 5.991. Using the Chi-Square table.
Thus: The critical value is given as X2 is 5.991
Table 4.2.1: Testing of the 1st Hypothesis
O E o–e (o – e)2 (o – e)2
60 33 27 729 22.1
38 33 5 25 0.8
20 33 -13 169 5.1
14 33 -19 361 10.9
132 38.9
Comparing the test statistics with critical value 38.9> 5.991.
Decision Rule: Since the calculated value of X2 is greater than the critical value 5.991, the
null hypothesis which states that the level of corruption in the Nigeria polity is not a function
of bad governance and corrupt individuals is rejected and the alternative hypothesis which
states that the level of corruption in the Nigeria polity is a function of bad governance and
corrupt individuals is accepted.
Conclusion: The level of corruption in the Nigeria polity is a function of bad governance and
corrupt individuals.
54
Hypothesis Two:
H1: The accounting firm is capable of fighting corruption in Nigeria.
H0: The accounting firm is not capable of fighting corruption in Nigeria.
The hypothesis can be tested by using table 4.1.8 where a total of 33 respondents representing
25% strongly agree that the accounting firm is not capable of fighting corruption in Nigeria,
44 representing 33.3% agreed, 36 respondents representing 27.3% strongly disagree while 19
representing 14.4% of the respondents disagreed.
Test Statistics:
formula X2 = ∑ (oi – ei)2
ei
Assumption:
Degree of Freedom:
DF = (R – 1) (C – 1)
Where, R = Rows
C = Columns
DF = (2 – 1) (4 – 1)
DF = 1x3
= 3
NOTE: The value of 3 at 0.05 significant levels is 5.991. Using the Chi-Square table.
Thus: The critical value is given as X2 is 5.991.
55
Table 4.2.2: Testing of the 2nd Hypothesis
O E o–e (o – e)2 (o – e)2
33 33 0 0 0
44 33 11 121 3.7
36 33 3 9 0.3
19 33 -14 196 5.9
132 9.9
Comparing the test statistics with critical value 9.9 > 5.991.
Decision Rule: Since the calculated value of X2 is greater than the critical value 5.991, the
null hypothesis which states that the accounting firm is not capable of fighting corruption in
Nigeria is rejected and the alternative hypothesis which states that the accounting firm is
capable of fighting corruption in Nigeria is accepted.
Conclusion: The accounting firm is capable of fighting corruption in Nigeria.
Hypothesis Three:
H1: The use of accounting information has enhanced our society in dealing with the
H0: The use of accounting information has not enhanced our society in dealing with the
The hypothesis can be tested by using table 4.1.9 where 40 of the respondents representing
30.3% strongly agree that the use of accounting information will enhance our society in
dealing and fighting with the problem of corruption, 24.2% agreed, 27.3% strongly disagree
while 18.2% of the respondents disagreed.
56
Test Statistics:
formula X2 = ∑ (oi – ei)2
ei
Assumption:
Degree of Freedom:
DF = (R – 1) (C – 1)
Where, R = Rows
C = Columns
DF = (2 – 1) (4 – 1)
DF = 1x3
= 3
NOTE: The value of 3 at 0.05 significant levels is 5.991. Using the Chi-Square table.
Thus: The critical value is given, as X2 is 5.991.
57
Table 4.2.3: Testing of the 3rd Hypothesis
O E o–e (o – e)2 (o – e)2
40 33 7 49 1.5
32 33 -1 1 0.03
36 33 3 9 0.3
24 33 -9 81 2.5
132 4.33
Comparing the test statistics with critical value 4.33<5.991.
Decision Rule: Since the calculated value of X2 is lesser than the critical value 5.991, the null
hypothesis which states that the use of accounting information has not enhanced our society
in dealing with the problem of corruption is accepted, and the alternative hypothesis which
states that the use of accounting information has enhanced our society in dealing with the
problem of corruption is rejected.
Conclusion: The use of accounting information has not enhanced our society in dealing with
the problem of corruption.
4.3 Discussion of Findings
Findings shows that majority of the respondents in this research agreed that corruption is
truly rampant in the accounting firm in Nigeria. This implies that majority of the respondents
strongly agree that the level of corruption in Nigeria is a function of bad governance. In
addition, respondents in this research strongly agree that the use of accounting information
will enhance our society in dealing and fighting with the problem of corruption. The findings
show that 54.5% of the respondents strongly agree that the effectiveness of accounting firm
will be able to eradicate corruption in Nigeria.
58
In addition, findings show that 34.8% of the respondents strongly agree that accountants do
review the relevant documentation to form initial assessment of the case in an identified area
of loss.
Therefore, the level of corruption in the Nigeria policy is a function of bad governance and
corrupt individuals. In addition, the accounting firm is capable of fighting corruption in
Nigeria and the use of accounting information has not enhanced our society in dealing with
the problem of corruption
59
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
The project work points to the fact that, while some see the phenomenon (corruption) to be
functional, others sees it to be dysfunctional, in the implementation of management principles
and sustainable development in Nigeria.
The study examined the accounting firm of the establishment with respect to its legality as a
tool to fight corruption in Nigeria. More so, the study was equally oriented towards
establishing the extent to which the establishment as a legal institution empowered by law to
fight corruption has fared in this regard. However, though enough scholarly energy has been
expended in an attempt to explore the activities of the Accountants, there are also areas of
loopholes in the mechanism used by the professions to tackle the cankerworm. Therefore, to
be properly guided, we hypothesized that the accounting firm lack enormous resources,
expertise to operate and constitutional impediment undermines its activities also.
Finally, it is observed that the accounting firm will work through to fight corruption and by
so doing restore sanity in the system, revitalize the economy and reposition the country on the
path of sustainable development.
Furthermore, we also examined the extent to which the accounting firm has fared in the fight
against corruption having been established by law to do so.
5.2 Conclusion
The project revealed that corruption is a malignant tumour that feeds on its host to death if
not quarantined. Therefore, the struggle for checkmating the scourge is one of the survivals of
the Nigeria political system, having in mind that it has been the major cause of the failed
attempts at democracy. The role of a forensic accountant under contemporary conditions no
doubt is very important because they help lawyers, courts, the police, regulatory bodies and
60
other institutions in investigating and documenting frauds. The increasing occurrence of fraud
in modern day business environment requires the services of forensic accountants to unearth
fraudulent activities within and outside an organization. Also, continued audit failures over
the last five decades have prompted a paradigm shift in accounting. It is generally accepted
that an auditor has the duty to perform tests to detect material defalcation and errors if they
exist. However, fraud detection experts called forensic accountants are now been hired in
developed economies to investigate cases of fraud.
5.3 Recommendations
Therefore, it is recommended that professional bodies in Nigeria like the Institute of
Chartered Accountants, Association of National Accountants, and the National Universities
Commission should encourage the formalization and specialization in the field of forensic
accounting. In addition, government should develop more interest in forensic accounting for
monitoring and investigating suspected culprits in fraud cases as evidenced in the examples
earlier cited. Also, our laws should be up to date with latest advancement in technology to
ensure admissibility of evidence in a law court for successful prosecution of criminal and
civil cases. Government should have an effective plan with other countries in extraditing run
away fraudsters from anywhere around the globe.
Finally, it is also recommended that government should ameliorate the expenses involved in
engaging the services of a forensic accountant. It is hoped that if these recommendations are
implemented and culprits treated without favoritism; the occurrence of fraud will reduce
drastically within the Nigerian Society which ultimately should impact on our global rating
by transparency international. To achieve this, the following recommendations will aid in
minimizing the scourge. To successfully fight corruption, the president and his subordinate
must lead by example. In essence, he set veritable examples. They have unique role to play.
The duo should live by example. For example, during the Buhari led administration, the war
61
against corruption and indiscipline campaign was successful largely because the two leading
military officers (General Mohammud Buhari and his deputy General Babatunde Idiagbon)
demonstrated their personal commitment to the struggles and Nigerians accepted the message
and the level of corruption and general indiscipline in the country fell considerably. More so,
the issue of those who commit crimes but are exonerated and considered untouchable should
be stopped if the Commission is not merely to be seen as some other avenues for
compensating political loyalties, friends and relatives. The limitation on it should be removed
and let it be seen to have lived up to the expectation for the first time in our generation.
There should be a re-orientation of the Nigeria masses for a better values system. Ethics and
morality are the norms of a decent society Adherence to ethical standard in decision-making
must be the foundation of the nation’s politics. It should be noted that without ethics, any
money budgeted toward fighting corruption in Nigeria, is money placed in the hands of
corrupt officials in authority just to enrich themselves.
The judicial system must be strengthened and the law enforcement agencies should be
thoroughly restructured and re-oriented so that they can effectively combat the canker worm
(corruption). Government should ensure that the rate of unemployment is reduced and those
already employed should be well remunerated to check gratification. Religious values of
honesty, probity and hard work should be revisited in the teaching of church more than the
teachings on prosperity.
5.4 Proposal for Further Studies
Due to limited time and scope, this study is restricted to just one company. It is important for
further studies to be carried out in order to do justice to all the factors that influence curbing
corruption. It is very pertinent now to suggest that more research should be conducted on the
role of an accountant in curbing corruption in Nigeria. The uniqueness of this would show
the role of an accountant in curbing corruption in Nigeria.
62
REFERENCES
Abubakar, M. 2011. The Instutionalization of Corruption and its Impact on Political Culture
and Behaviour in Nigeria. Nordia Journal of African studies, 11 (3). 10
Adeniyi, A. 2004. Auditing and Investigation Lagos, El-Toda Ventures Limited
Adepoju, A. 2013. Endangering Good Governance for sustainable Democracy. The
Continuity Struggle against Corruption. Journal of Research in peace, Gender and
Development. I (11), 8
Agbiboa, D. E. 2012. Between Corruption and Development: The Political Economy of State
Robbery in Nigeria. Journal of Business Ethics, 108(3), 325–345.
Ake, C. 1976. Explanatory note on political economy in the journal of modern Africa
studies.Vol. 14. No. 1.pp1-14
Anyanwu, J.C., 1993. Monetary Economics: Theory, Policy and Institutions. Hybrid
Publishers, Onitsha.
Atelhe, A. G.and Agada, A. T. 2014. Re-Visiting Political Corruption and Development in
Nigeria under Democratic Rule. Academic Journal of Interdisciplinary Studies, 3(1),
305–314.
Augustine, E.A.and Famous, I.O. 2013. The Narrowing Audit Expectation Gap, Fraud
Detection Complexities and the Imperative of Forensic Accounting Practice in
Nigeria, Research Journal of Finance and Accounting, Vol.4, No.12, pp. 110-107
Ayose, A.P. 2005. “Corruption versus resources management in Nigeria” What hopes for the
21st century. Lectures series of department of guidance and counselling University of
Ibadan. InThe Guardian Newspaper February 17.pg. 87.
Azeez, A., 2011. Endangering Good Governance for Sustainable Democracy: The
Continuing Struggle Against Corruption Nigeria. Journal in Research, Peace, Gender
and Development, 1(11), 307–314.
63
Balogna, G.J. and Robert, J.L. 1995. Fraud Auditing and Forensic Accounting: New tool and
Techniques.New York: John Wiley and Sons.
Braithawaite, J. 1985. White Collar Crime. Annual Review of Sociology
Bressler, L., Winter 2006. Forensic Accountants CST’s of the corporate World. The
Accounting Educator, XV, I 31-32
Casimir, K. C. A., Izueke, E. M., and Nzekwe, I. F. 2014. Public Sector and Corruption in
Nigeria: An Ethical and Institutional Framework of Analysis. Open Journal of
Philosophy, 4(August), 216–224.
Chariri, A. 2009. The Relevance of Forensic Accounting in Detecting Financial
Frauds.Published by Centre for Accountability, Shariah& Forensic Accounting
Studies.
Chi-Chi, O. A., and Ebimobowei, A. 2012. Fraudulent Activities And Forensic Accounting
Services Of Banks In Port Harcourt. Nigeria.
Enof A.O., Okpako P.O., and Atube E.N. 2013. The Impact Of Forensic Accounting On
Fraud Detection. European Journal of Business And Management Vol.5, No.26,
Pp.61-74
Gambo, A., 2006. Godfatherism and Electoral Politics in Nigeria. Journal of politics and
Corruption in Nigeria, 17
Gire, J. 1999. A Psychological Analysis of Corruption in Nigeria. Journal of Sustainable
Development in Africa, 1(2), 15.
Ibietan, J. 2013. Corruption and Public Accountability in the Nigerian Public Sector:
Interrogating the Omission. European Journal of Business and Management, 5(15),
41–49.
Ijewereme, O. B., 2015. Anatomy of Corruption in the Nigerian Public Sector: Theoretical
Perspectives and Some Empirical Explanations. SAGE Open, 5(2), 1–16.
64
Inokoba, P. K., and Ibegu, W. T., 2011. Economic and Financial Crime Commission (EFCC)
and Political Corruption: Implication for the Consolidation of Democracy in Nigeria.
Anthropologist, 13(4), 283–291.
Jafar, J., 2011. Forensic Accounting Practice in Nigeria: A New Paradigm For Stakeholders.
Joshi, M. S. (2003). Definition of Forensic Accounting;
Kasum, A. S. B., 2009. The Relevance of Forensic Accounting to Financial Crimes in Private
and Public Sectors of Third World Economies: A Study from Nigeria.Journal of
Business Ethics.
Malgwi, C., 2004. Fraud as economic terrorism: the efficacy of the Nigerian Economic and
Financial Crimes Commission.Journal of Financial Crime, 12(2), 144–164.
Manurung D.T.H and Hadian N. 2013. Detection Fraud of Financial Statement with Fraud
Triangle Proceedings of 23rd International. Business Research Conference Pp. 18 -
20 Marriott Hotel, Melbourne, Australia.
Mohammed, U., 2013. Corruption in Nigeria: a Challenge To Sustainable Development in
the Fourth Republic. European Scientific Journal, 9(4), 118–137.
Mukoro, D.O. Faboyede, S.O. and Edafejirhaye, V. I., 2011. Forensic Accounting and
FraudManagement Perspective: An Integrated Approach. H-Link Excel, Lagos.
Obuah, E., 2010. Combating Corruption in A “Failed” State: The Nigerian Economic and
Financial Crimes Commission. Journal of Sustainable Development in Africa, 12(1),
27–53.
Ochulor, C., Metuonu, I., and Asuo, O. 2011.Corruption in contemporary Nigeria: The way
out.American Journal of Social and Management Sciences, 2(1), 91–99.
Okoye, E.I., and Gbegi, D.O. 2013. Forensic Accounting: A Tool for Fraud Detection And
Prevention in The Public Sector (A Study Of Selected Ministries In Kogi
State).International Journal of Academic Research in Business and Social
65
Olajide, F., 2000. frauds detection and prevention: the case of pension accounts ICAN
NEWS January/March. PS
Olaniyan, A. 2002. Corruption and Economic Development in Nigeria, Image Merchants
Promotions, Nigeria.
Onuorah, A., Chi-Chi, and Appah, E. 2011.Fraudulent Activities and Forensic Accounting
Services of Banks in Port Harcourt, Nigeria, Asian Journal of Business Management
4(2): pp. 124-129
Owolabi, E. 2007. Corruption and Financial Crime in Nigeria: Genesis, Trend and
Consequences.
Osoba, S., 1996. Corruption in Nigeria: Historical Perspective.Review of African Political
Economy, 69, 371–386.
Sadiq, M. And Abdullahi, M., 2013. Corruption as the Bane of Nigeria’s
Development.International Journal of Economic Development Research and
Investment, 4(1), 83–93.
Surtherland, H.E.,1939. Theory of white Collar Crime: Crime of the Powerful. University of
Chicago, Pp260-265
Wells, J., 2004. New Approaches to Fraud Deterrence. Journal of Accountancy, Pp 203-212
Wolf, D.T. and Hermanson, D.R. 2004. “The Fraud Diamond: Considering the Four
Elements Of Fraud’’: The Certified Public Accountants (CPA) Journal.
Yaru, M. A., 2009. Economic Perspective of Corruption in Public Sector: A Theoretical
Explanation and Lessons for Nigeria.Ilorin Journal of Business and Statistics.51-59.
Zysman, A., 2004. “Forensic Accounting Demystified”, World Investigators Network
Standard Practice for Investigative and Forensic Accounting Engagements, Canadian
Institute of Chartered Accountant
66
APPENDIX
NATIONAL OPEN UNIVERSITY OF NIGERIA, IBADAN STUDY CENTRE
DEPARTMENT OF ACCOUNTING
FACULTY OF MANAGEMENT SCIENCE
Department of Accounting,
National Open University of Nigeria,
University Village, Plot 91, Cadastral
Zone, Nnamdi Azikwe Express Way
Jabi-Abuja.
Dear Respondents,
Questionnaire on “The Role of an Accountant in Curbing Corruption in Nigeria”.
I am a final year student of the above named institution. I am carrying out a research on“The
Role of an Accountant in Curbing Corruption in Nigeria”.
This research is in partial fulfilment of the requirement for the award of Bachelor of Science
in Accounting. Kindly assist by providing the correct answers by ticking ( ) in the space
provided in front of each questions.
We promise that any information provided by you will be treated with full confidentially and
for academic purpose only.
Thanks in anticipation.
Salami Oluwakemi Rachael.
NOU152764178
67
SECTION A
This is purely an academic exercise and every information contained, shall be related instrict
confidence. So respondents are employed to be truthful and sincere as possible.
1. Sex: Male [ ], Female [ ]
2. Age: 20 – 30 [ ], 31 – 40 [ ], 41 – above [ ]
3. Marital Statius: Single [ ] Married [ ], Divorced [ ], Widowed [ ]
4. Educational Qualification: Ph.D.[ ], M.Sc. [ ], B.Sc./H.N. D[ ], OND/NCE [ ],
5. Years of Experience: 0 – 5 [ ], 6 – 10 [ ], 11 – 15 [ ], 16 and above [ ]
SECTION B
Instruction: Please tick () in the appropriate box to signify your choice of answer
1. Is corruption truly rampant in the accounting firm in Nigeria?
a) Strongly agree, ( )
b) Agree, ( )
c) Strongly disagree, ( )
d) Disagree, ( )
2. Is level of corruption in Nigeria a function of bad governance
b) Agree, ( )
d) Disagree, ( )
3. Do you think that the accounting firm is capable or able to fight corruption in Nigeria?
b) Agree, ( )
68
d) Disagree, ( )
4. Do you think that the use of accounting information will enhance our society in dealing
and fighting with the problem of corruption?
b) Agree, ( )
d) Disagree, ( )
5. Do you think that accountants are the main role/lead to curb or fight corruption in
Nigeria?
b) Agree, ( )
d) Disagree, ( )
6. Do you think that the effectiveness of accounting firm will be able to eradicate corruption
in Nigeria?
b) Agree, ( )
d) Disagree, ( )
7. Does accountant search for evidence of criminal conduct or assist the determination of or
rebuttal of claimed damages
b) Agree, ( )
d) Disagree, ( )
69
8. Does accounting provides assistance with the protection and recovery of assets
b) Agree, ( )
d) Disagree, ( )
9. Does accounting provides coordination of other expert including, private investigations,
forensic document examiner, consulting engineers in fighting corruption
b) Agree, ( )
d) Disagree, ( )
10. Do accountants review the relevant documentation to form an initial assessment of the
case in an identified area of loss
b) Agree, ( )
d) Disagree, ( )
11. Do accountants attend the examination for discovery to review the testimony, assist with
the understanding the financial issues and to formulate additional questions to be asked
during curbing corruption?
b) Agree, ( )
d) Disagree, ( )
12. Do accountants obtain documents necessary to support or refute a claim
70
b) Agree, ( )
d) Disagree, ( )
13. Do accountant provides relevant parties with report to judge the expert’s opinion and the
basis for these opinions
b) Agree, ( )
d) Disagree, ( )
14. Does auditor leaves audit trail in carrying out his investigation
b) Agree, ( )
d) Disagree, ( )
15. Do accountant’s report is designed to support the curbing of corruption in Nigeria?
b) Agree, ( )
d) Disagree, ( )
71

I The Role of An Accountant in Curbing C

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

I The Role of An Accountant in Curbing C

Uploaded by

Copyright:

Available Formats

THE ROLE OF AN ACCOUNTANT IN CURBING CORRUPTION IN NIGERIA: A

CASE STUDY OF UNIVERSITY COLLEGE HOSPITAL, U.C.H IBADAN

SALAMI OLUWAKEMI RACHAEL

MATRIC NO: NOU152764178

A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY

OF MANAGEMENT SCIENCE, NATIONAL OPEN UNIVERSITY OF NIGERIA,

ABUJA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF BACHELOR OF SCIENCE (B.Sc. HONS) DEGREE IN ACCOUNTING

THE ROLE OF AN ACCOUNTANT IN CURBING CORRUPTION IN NIGERIA is as

been made in the text and stands subject to plagiarism scrutiny.

CURBING CORRUPTION IN NIGERIA was carried out by SALAMI OLUWAKEMI

RACHAEL in the Faculty of Management Sciences, National Open University of Nigeria,

Abuja, Nigeria for the award of Bachelor of Science Degree in Accounting.

Dr. L. O. Salami Date

God continued to bless you (Amen).

members of staff for their support.

my fiance for their wonderful encouragement and support.

well-wishers I say God bless you all.

Financial Crimes Commission, Independent Corrupt Practices Commission, and Code of

meddling and interference.

Table of Contents vii

CHAPTER ONE: INTRODUCTION

1.2 Background to the study 1

1.3 Statement of the problem 4

1.4 Objectives of the study 5

1.5 Research questions 5

1.6 Statement of the hypotheses 6

1.7 Significance of the study 6

1.8 Justification of the study 7

1.9 Scope of the study 8

1.10 Definitions of terms 8

CHAPTER TWO: LITERATURE REVIEW

2.1 Conceptual frame work 11

2.3 Literature on the subject matter 26

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Area of study 35

3.1 Research design and sources of data 36

3.2 Study population and determination of sample size 38

3.4 Procedure for data collection and data analysis 39

3.7 Limitations of the study 40

CHAPTER FOUR: DATA ANALYSIS, FINDINGS AND DISCUSSION

4.1 Findings of the study 41

4.2 Test of hypothesis 53

4.3 Discussion of the findings 58

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of findings 60

5.4 Proposal for further studies 62

Table 4.1.1: Gender of the respondents 41

Table 4.1.2: Age of the respondents 42

Table 4.1.3: Status of respondents 42

Table 4.1.4: Educational Background of the Respondents 43

Table 4.1.5: Years of Experience of the Respondents 43

Table 4.1.6: Is corruption truly rampant in the accounting firm in Nigeria? 44

Table 4.1.7: Is level of corruption in Nigeria a function of bad governance? 44

our society in dealing and fighting with the problem of corruption? 46

to eradicate corruption in Nigeria? 47

determination of or rebuttal of claimed damages? 47

Table 4.1.14: Doesaccounting provides coordination of other expert including, private

investigations, forensic document examiner, consulting engineers in

Table 4.1.15: Do accountants review the relevant documentation to form an initial

testimony, assist with the understanding the financial issues and to

formulate additional questions to be asked during curbing corruption? 50

Table 4.1.17: Do accountants obtain documents necessary to support or refute a claim? 51