Forensic Accounting and Fraud Prevention and Detection: A Case Study of EFCC and ICPC Nigeria

Abstract

Fraud and other forms of financial misconduct remain significant challenges to the effectiveness, accountability, and integrity of public-sector institutions in Nigeria. The increasing sophistication of financial crimes has consequently heightened the need for investigative and evidential mechanisms capable of strengthening institutional responses to fraud. This study therefore examines the effects of Forensic Investigation Skills (FIS) and Litigation Support Services (LSS) on institutional mechanisms associated with fraud detection and prevention among personnel of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) in Gombe State, Nigeria. Specifically, Whistleblowing Policy (WBP) is employed as an institutional mechanism through which the study assesses the fraud-detection-related outcome, while Internal Control Systems (ICS) are employed as an institutional mechanism through which the fraud-prevention-related outcome is assessed. Institutional Size (INSI) is included as a control variable. The study adopts a quantitative cross-sectional survey design and obtains usable responses from 127 respondents drawn from relevant personnel of the EFCC and ICPC. Data are analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings indicate that FIS and LSS have positive effects on the study's fraud-detection-related and fraud-prevention-related institutional outcomes. The study concludes that strengthening forensic investigative capabilities and litigation support mechanisms can enhance institutional capacity to respond to financial misconduct. The study recommends continuous professional development in forensic investigation, improved institutional support for forensic practice, and strengthened systems for whistleblowing and internal control within public-sector anti-corruption institutions.