An evaluation of fornsic accountants to planning management fraud risk detectin procedures
AN EVALUATION OF FORENSIC ACCOUNTANTS TO PLANNING MANAGEMENT FRAUD RISK DETECTION PROCEDURES
ABSTRACT
The study of the evaluation of Forensic Accountants to planning management fraud risk detection procedures aimed at investigating the relative merits of involving Forensic Accountants during the planning stage of developing an audit plan that will effectively identify Management fraud. Both primary and secondary sources of data were used for the study. Thirty five copies questionnaire were distributed to Accountants, in Kogi State, out of which 31 were filled and returned. Simple percentages mean and standard deviation were used to quantify the height of the variable. Multivariate Analysis of Variance (MANOVA) and Analysis of Variance (ANOVA) were used for the comparison of the study with Asare and Wright (2004) study. The study found out that, Forensic Accountants effectively modify the extent and nature of audit test when the risk of Management fraud is high, Forensic Accountants propose unique procedures that are not proposed by auditors when the risk of Management fraud is high, Forensic Accountants can make to the effectiveness of an audit plan when the risk of Management fraud is high, involving Forensic Accountants in the risk of Management fraud assessment process leads to better results than simply consulting them. The study recommended that Forensic Accountants should be involved in the planning stage of an audit, before and after the auditor has identified Management fraud risk factors. There is need for more training and accreditation of Forensic Accountants.
Keywords: forensic accountants, planning, management fraud, risk detection, investigating
Introduction
Management fraud is the “deliberate fraud committed by Management that injures investors and creditors through materially misleading Financial Statements” (Elliot and Willingham 1980, Apostolou, et al, 2000). The ability of an auditor to make an accurate assessment of Management Fraud Risk
ABSTRACT
The study of the evaluation of Forensic Accountants to planning management fraud risk detection procedures aimed at investigating the relative merits of involving Forensic Accountants during the planning stage of developing an audit plan that will effectively identify Management fraud. Both primary and secondary sources of data were used for the study. Thirty five copies questionnaire were distributed to Accountants, in Kogi State, out of which 31 were filled and returned. Simple percentages mean and standard deviation were used to quantify the height of the variable. Multivariate Analysis of Variance (MANOVA) and Analysis of Variance (ANOVA) were used for the comparison of the study with Asare and Wright (2004) study. The study found out that, Forensic Accountants effectively modify the extent and nature of audit test when the risk of Management fraud is high, Forensic Accountants propose unique procedures that are not proposed by auditors when the risk of Management fraud is high, Forensic Accountants can make to the effectiveness of an audit plan when the risk of Management fraud is high, involving Forensic Accountants in the risk of Management fraud assessment process leads to better results than simply consulting them. The study recommended that Forensic Accountants should be involved in the planning stage of an audit, before and after the auditor has identified Management fraud risk factors. There is need for more training and accreditation of Forensic Accountants.
Keywords: forensic accountants, planning, management fraud, risk detection, investigating
Introduction
Management fraud is the “deliberate fraud committed by Management that injures investors and creditors through materially misleading Financial Statements” (Elliot and Willingham 1980, Apostolou, et al, 2000). The ability of an auditor to make an accurate assessment of Management Fraud Risk
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