Eghe-Ikhu he, G ace Osa iemen; Roni, Naheed Nawazesh; Bonsu, Mandella Osei
Assibey
A icle
Fo ensic accoun ing in aud de ec ion and p e en ion: A
quali a i e in es iga ion o mic o inance ins i u ions
In e na ional Jou nal o Managemen , Economics and Social Sciences (IJMESS)
P o ided in Coope a ion wi h:
In e na ional Jou nal o Managemen , Economics and Social Sciences (IJMESS)
Sugges ed Ci a ion: Eghe-Ikhu he, G ace Osa iemen; Roni, Naheed Nawazesh; Bonsu, Mandella Osei
Assibey (2024) : Fo ensic accoun ing in aud de ec ion and p e en ion: A quali a i e in es iga ion
o mic o inance ins i u ions, In e na ional Jou nal o Managemen , Economics and Social Sciences
(IJMESS), ISSN 2304-1366, IJMESS In e na ional Publishe s, Je sey Ci y, NJ, Vol. 13, Iss. 3/4, pp.
116-133,
h ps://doi.o g/10.32327/IJMESS/13.3-4.2024.6
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2024, Vol. 13(3-4), pp. 116 – 133.
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Fo ensic Accoun ing in F aud De ec ion and
P e en ion. A Quali a i e In es iga ion o
Mic o inance Ins i u ions
*G ace Osa iemen Eghe-Ikhu he 1
Naheed Nawazesh Roni 1
Mandella Osei-Assibey Bonsu 1
1 Tessside Uni e si y In e na ional Business School, Tessside Uni e si y, Middlesb ough, Uni ed Kingdom
Despi e au ho i ies and go e nmen s’ e o s in aud p e en ion
and in es iga ion, new ypes o aud eme ge daily. In ac , he
ise in global business scandals has heigh ened he need o
o ensic accoun ing, as inancial aud is he wo ld’s mos se e e
economic h ea . Fo ensic accoun ing combines accoun ing,
audi ing, and in es iga i e skills o de ec and p e en
accoun ing aud. Resea ch on aud in es iga ions and o ensic
accoun ing has p edominan ly employed quan i a i e me hods, wi h
ela i ely ew s udies u ilizing quali a i e esea ch app oaches.
The e o e, his s udy ills he gap and examined he ole o
o ensic accoun ing in aud de ec ion and p e en ion o
mic o inance in Nige ia. A quali a i e app oach was employed using
a sample o eigh een pa icipan s wo king in Nige ian mic o inance
i ms. The esul s show ha ad anced echnological skills in
o ensic accoun ing can enhance he in eg i y o mic o inancing
ins i u ions in Nige ia, p e en ing aud and gain in es o and
sha eholde con idence. In addi ion, he esul s e eal ha , he
u u e o mic o inance o ensic accoun ing is expec ed o
p io i ize echnological ad ancemen s like da a analy ics,
machine lea ning, a i icial in elligence, and blockchain in i s
p ocedu es. By implica ion, o ensic accoun ing is c ucial o
Nige ian mic o inance ins i u ions; managemen mus ecognize i s
impo ance in implemen ing p oac i e measu es o p e en aud.
Keywo ds: Fo ensic accoun ing, mic o inance ins i u ions, aud,
echnology, Nige ia
JEL: M41, M42, N27
Globally, audulen and suspicious inancial ac i i ies a e inc easing, posing a h ea o businesses due
o une hical and dishones p ac ices (Wije a hna and Pe e a, 2020). The ise in global business scandals
has heigh ened he need o o ensic accoun ing, as inancial aud is he wo ld’s mos se e e economic
h ea (Abdullahi and Manso , 2018). The global collapses o En on and Wo ldCom ha e inc eased he
need o o ensic accoun an s o de elop sys ems and con ols o aud iden i ica ion, p e en ion, and
managemen (Popoola
e al
., 2015). Be ween 2018 and 2019, 28 pe cen o global accoun ing/ inancial
aud cases occu ed, esul ing in app oxima ely $42 billion in losses (Kau
e al
., 2023). These e en s
ha e led o he implemen a ion o a ious s anda ds, ules, and egula ions like US Sa banes-Oxley Ac
(2002) enac ed o p e en o elimina e such inciden s.
New ypes o aud occu daily despi e i ms and coun ies e o o p e en and in es iga e aud
(G ima
e al
., 2016). Acco ding o Ehioghi en and A u (2016), o ensic accoun ing and an i-co up ion
DOI:10.32327/IJMESS
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1
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3
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4
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4
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Manusc ip ecei ed May 28, 2024; e ised Augus 16, 2024; accep ed Sep embe
10, 2024. © The Au ho (s); CC BY-NC; Licensee IJMESS
Publishe : UCHPRO & Na ional D.B.A Socie y, USA
*Co esponding au ho : G.Eghe-Ikhu he@ ees.ac.uk
In e na ional Jou nal o Managemen , Economics and Social Sciences
117
p ac ices manage inancial c ime isk and de ec o ge ies du ing audi s. Indeed, because o ganisa ions
gene a e a as amoun o inancial da a and become mo e complica ed, comba ing aud and c ime
using s anda d app oaches becomes inc easingly di icul . Nige ian accoun an s emphasize he
impo ance o aining and acc edi a ion in comba ing aud and c ime (Okoye and Gbegi, 2013).
Simila ly, Sha ma and Panig ahi (2013) sugges ha da a mining echniques like logis ic models, neu al
ne wo ks, Bayesian belie ne wo ks, and decision ees can help manage and de ec aud.
Ga ne (2004) de ines aud as knowingly mis ep esen ing o concealing a ma e ial ac o decei e
ano he in o ac ing o hei de imen . F aud is de ined as audulen ly manipula ing o he s o gain income
o commodi ies, making misleading sugges ions, o concealing he ac s o keep an edge o e o he s
(Kau
e al
., 2023). Accoun ing is c ucial o de ec ing and p e en ing aud, wi h bo h in e nal and
ex e nal audi o s playing a signi ican ole in his p ocess. Howe e , audi o s e alua e a i m’s inancial
s a emen s’ compliance wi h accoun ing s anda ds and ele an ules and egula ions, and u he de ec
aud and d aw a en ion.
Fo ensic accoun ing is a me hod ha combines accoun ing, audi ing, and in es iga ion o de ec and
p e en accoun ing aud, pa icula ly in iden i ying une hical inancial o economic ac i i ies due o
inc eased aud equency (Okoye and Gbegi, 2013). I is he applica ion o science and echnology o
unco e audulen accoun ing, inance, and business p ac ices (Rezaee
e al
., 2016). Fo ensic
accoun an s a e p ima ily esponsible o in es iga ing illegal ac i i ies such as aud, co up ion, money
launde ing, compu e aud, con e sion, and he . Managemen is esponsible o p e en ing and
de ec ing aud wi hin an o ganiza ion, wo king closely wi h audi o s and o he membe s o he co po a e
go e nance and epo ing ecosys em. Howe e , o ensic accoun ing was de eloped due o ex an gaps
in adi ional accoun ing sys ems (Bie s ake
e al
., 2006; Sahi i and Bek ashi, 2015). Accoun ing,
audi ing, and in es iga i e skills a e employed o iden i y, p e en , and comba inancial c imes, educe
co up ion, and p o ide legal assis ance (Mohd-Nassi
e al
., 2016).
Fo ensic accoun ing solu ions a e widely ecognized as he mos e ec i e me hod o de ec ing and
p e en ing aud (K anache , 2006), wi h Dela ue (2020) emphasizing he impo ance o inco po a ing
hese echniques o e ec i e aud p e en ion and de ec ion. The s udy explo es he inc easing
impo ance o o ensic accoun ing in aud de ec ion and p e en ion conside ing i s apid de elopmen .
Se e al s udies ha e examined o ensic accoun ing in aud de ec ion and p e en ion (Ehioghi en and
A u, 2016; Okoye and Mbanugo, 2020; Okpako and A ube, 2013). Howe e , limi ed s udies ha e
quali a i ely examined his phenomenon wi h mic o inance ins i u ions. In addi ion, s udies s udied aud
in es iga ions and o ensic accoun ing in Nige ia adop ed quan i a i e esea ch me hod (Ahmadu
e al
.,
2013, Bassey, 2018, Chukwunedu and Okoye, 2011), indica ing limi ed s udy in quali a i e esea ch.
Hence, his s udy enhances he li e a u e o examine he ole o o ensic accoun ing in aud de ec ion
Eghe-Ikhu he e al.
118
and p e en ion and u he in es iga es he challenges aced by mic o inancing ins i u ions on he
e ol ing na u e o aud schemes.
We ocus on mic o inance ins i u ions in Nige ia based on he below compelling easons. Fi s ,
Nige ia, A ica’s la ges economy wi h app oxima ely $510 billion GDP aces inancial aud, especially
in mic o inance ins i u ions, necessi a ing he de elopmen o e ec i e aud de ec ion and p e en ion
s a egies like o ensic accoun ing. Addi ionally, Nige ia’s mic o inance sec o aces unique challenges
due o limi ed esou ces and inadequa e in e nal con ols, inc easing hei ulne abili y o aud. Second,
mic o inancing ins i u ions ha e eme ged as essen ial ca alys s o inancial inclusion in Nige ia, o e ing
mic oloans, sa ings, and insu ance se ices o he economically ulne able popula ion (Samson
e al
.,
2013). Howe e , he sec o ’s apid g ow h and decen alized ope a ions ha e exposed i o a ious isks,
including inancial aud (Samson
e al
., 2013). Thus, o ensic accoun ing, ha has an in es iga i e and
p e en i e capabili ies, plays a pi o al ole in sa egua ding he in eg i y o mic o inancing ope a ions
(Bassey, 2018, Ikpe and Uwah, 2023).
This pape p o ides h ee old signi ican con ibu ions. Fi s ly, he s udy indica es ha ad anced
echnological skills in o ensic accoun ing can enhance he in eg i y o Nige ian mic o inancing
ins i u ions, p e en aud, and boos in es o and sha eholde con idence. The e o e, we p esen esh
e idence in o how o ensic accoun ing con ibu es o aud de ec ion and p e en ion in he Nige ian
mic o inance ins i u ions. Secondly, li e a u e has s udied aud in es iga ions and o ensic accoun ing
adop ed quan i a i e esea ch me hod, e idencing limi ed s udies in quali a i e esea ch. The e o e, his
s udy ills he gap and examined he ole o o ensic accoun ing in aud de ec ion and p e en ion o
mic o inance in Nige ia. Finally, ou indings shed ligh on he ield, guiding s akeholde s, policymake s,
and p ac i ione s in adop ing e ec i e o ensic accoun ing skills and s a egies o os e ing
anspa ency, secu i y, and sus ainable g ow h wi hin he mic o inance sec o in Nige ia.
The emaining sec ions o he a icle a e s uc u ed as ollows. The e iew o ex an li e a u e and
heo e ical unde pinning a e p esen ed in sec ion 2. The hi d sec ion discusses he me hodology
employed in he s udy. The s udy esul s ha e been discussed in Sec ion 4. Ou pape concludes he
pape wi h bo h heo e ical and p ac ical implica ions.
LITERATURE REVIEW
The inc easing incidence o co po a e scandals and o ganiza ional ailu es, p ima ily due o audulen
managemen and public und misapp op ia ion, has highligh ed he necessi y o o ensic accoun ing o
business legi imacy and dependabili y (Izedonmi and Ibadin, 2012; Kau
e al
., 2023). Fo ensic
accoun ing in ol es expe accoun ing in ci il and c iminal legal p oceedings, analysing los ea nings,
In e na ional Jou nal o Managemen , Economics and Social Sciences
119
income, asse s, damages, in e nal con ols e iew, aud, and o he legal sys em ma e s (A iyie
e al
.,
2023). Fo ensic accoun ing in ol es a comp ehensi e unde s anding o accoun ing, audi ing, and
in es iga i e skills o in es iga e he and aud, equi ing a ho ough unde s anding o e idence
collec ion.
In his sec ion, we explo e he ole o o ensic accoun an s in aud de ec ion and p e en ion, ocusing
on undamen al p inciples like da a analysis, e idence ga he ing, and aud isk assessmen .
Da a Analy ics and Financial S a emen Analysis
Da a analy ics is a powe ul ool o aud de ec ion. Mic o inancing ins i u ions collec as amoun s o
da a ela ed o ansac ions, clien p o iles, and inancial ac i i ies. By employing da a analysis
echniques, including anomaly de ec ion and pa e n ecogni ion, o ensic accoun an s wi h analy ical
skills can iden i y i egula i ies o suspicious ends ha may indica e audulen ac i i ies (Hossain, 2023;
Okoye, 2009). This includes unusual ansac ion pa e ns, disc epancies in clien in o ma ion, o
unexpec ed changes in inancial beha iou .
Financial s a emen analysis can iden i y inconsis encies o ed lags ha indica e po en ial aud.
Fo ensic accoun an s sc u inize balance shee s, income s a emen s, and cash low s a emen s o de ec
disc epancies, unexplained luc ua ions, o unusual ansac ions (K anache and Riley, 2019). This
analysis can unco e issues like asse misapp op ia ion, ic i ious loans, o inancial s a emen
manipula ion.
Assessmen o In e nal Con ol, Documen a ion and Audi T ails
Assessing he e ec i eness o in e nal con ols is essen ial in aud de ec ion. Fo ensic accoun an s
e iew he in e nal con ol amewo k wi hin mic o inance ins i u ions o iden i y weaknesses o gaps ha
may be exploi ed by auds e s (Abei, 2021; Bassey, 2018; Ikpe and Uwah, 2023). S eng hening in e nal
con ols can de e aud and ensu e ha any audulen ac i i ies a e de ec ed mo e easily. Addi ionally,
main aining comp ehensi e audi ails and documen a ion o inancial ansac ions is also a
undamen al in aud de ec ion p ac ice (Abei, 2021; K anache and Riley, 2019). E e y inancial
ansac ion should lea e a ace, and hese eco ds can be highly aluable in econs uc ing ac i i ies in
case o suspec ed aud (Abei, 2021). Regula ly e iewing and econciling hese eco ds can help iden i y
disc epancies o missing in o ma ion by he o ensic accoun an (Ogunode and Dada, 2022).
Whis le Blowe P og ams and T ansac ion Moni o ing
Encou aging and ewa ding a cul u e o epo ing and anspa ency h ough whis le blowe p og ams can
be an e ec i e means o aud de ec ion. Employees, clien s, o o he s akeholde s who suspec
audulen ac i i ies can epo hem anonymously, allowing o ea ly in e en ion could be ini ia ed by
Eghe-Ikhu he e al.
120
he o ensic accoun an s (Single on and Single on, 2010).
Con inuous and egula moni o ing o inancial ansac ions is c ucial o ea ly aud de ec ion.
Mic o inance ins i u ions can implemen eal- ime ansac ion moni o ing sys ems ha lag unusual o
high- isk ansac ions o u he in es iga ion. Such sys ems can help iden i y unau ho ized wi hd awals,
o ged signa u es, o unusual accoun ac i i y p omp ly (Akinbowale
e al
., 2021).
Technology Enabled Solu ions
Le e aging echnology, such as aud de ec ion so wa e and biome ic au hen ica ion sys ems such as
he wo way iden i ica ion and mul i ace iden i ica ion, can enhance aud p e en ion and de ec ion
e o s (Aziz and And iansyah, 2023). Biome ic iden i ica ion me hods can also be used o educe he
isk o iden i y he , while ad anced so wa e can iden i y audulen pa e ns and ends (Rodge s,
2020). The dynamic na u e o aud equi es a mul i ace ed app oach o de ec ion wi hin he
mic o inancing sec o in Nige ia. Employing a combina ion o da a analy ics, inancial s a emen
analysis, ansac ion moni o ing, in e nal con ols assessmen , and echnology-enabled solu ions is
essen ial o s aying ahead o inc easingly sophis ica ed aud schemes. Addi ionally, os e ing a cul u e
o igilance and epo ing h ough whis les blowe p og ams can empowe s akeholde s o play an ac i e
ole in aud de ec ion and p e en ion wi hin mic o inance.
Mic o inancing in Nige ia
The Nige ian mic o inancing sec o has expanded signi ican ly o e he yea s, wi h hund eds o
mic o inance banks and ins i u ions ope a ing ac oss he coun y. This sec ion p o ides an o e iew o
he sec o ’s g ow h, egula o y amewo k, and i s ole in alle ia ing po e y and p omo ing economic
de elopmen . The mic o inancing sec o in Nige ia aces a ange o aud isks, including loan aud,
iden i y he , embezzlemen , and inside aud and hese a ious o ms o aud ha is p e alen in he
sec o , has had hei impac on mic o inancing ins i u ions and hei clien s (Bassey, 2018; Samson
e
al
., 2013). In hei su ey esea ch, Bassey (2018) highligh ed ha o ensic accoun ing a ec ed he
managemen o aud in mic o inance ins i u ions in C oss Ri e S a e. The da a we e collec ed om
bo h p ima y and seconda y sou ces and was analysed using he o dina y leas squa e echnique. The
s udy e ealed ha audi ailu es, o e ime, ha e p omp ed a pa adigm shi in accoun ing. Fo ensic
accoun ing is a c i ical ool o iden i ying, in es iga ing, and p e en ing aud in mic o inancing (Bassey,
2018). This sec ion discusses he undamen al p inciples o o ensic accoun ing in audulen ac in he
mic o inance sphe es in Nige ia, including da a analysis, e idence ga he ing, and aud isk assessmen .
I also ou lines he key oles o o ensic accoun an s in aud de ec ion and p e en ion (Bassey, 2018;
Chukwunedu and Okoye, 2011; Ikpe and Uwah, 2023; Ogunode and Dada, 2022). Fo ensic accoun ing
In e na ional Jou nal o Managemen , Economics and Social Sciences
121
is an indispensable ool o de ec ing and in es iga ing aud in he mic o inancing sec o in Nige ia.
Howe e , his specialized ield is no wi hou i s challenges and limi a ions, which can pose signi ican
obs acles in he ques o unco e inancial misconduc and p o ec he in eg i y o mic o inance
ins i u ions. Fo he pu pose o his s udy, we e iew and discuss he below challenges and limi a ions
on aud in es iga ion as i a ec s mic o inancing.
(1) Mic o inance ins i u ions in Nige ia o en ope a e wi h limi ed inancial and human esou ces
(Abubaka
e al
., 2015). Fo ensic accoun ing in es iga ions can be esou ce-in ensi e, equi ing
specialized skills and echnology (Bassey, 2018). The sca ci y o esou ces can hinde he abili y o
conduc ho ough and imely in es iga ions.
(2) Mic o inance ins i u ions may no always ha e e ec i e sys ems o epo ing and documen ing
po en ial aud inciden s (Abubaka
e al
., 2015). A lack o clea epo ing mechanisms can esul in
unde epo ing o delayed epo ing o aud, hampe ing imely in e en ion.
(3) Acco ding o s udies conduc ed by Abubaka
e al
. (2015) and Anyanwu (2004), Nige ia’s egula o y
en i onmen o mic o inance ins i u ions may no always align wi h bes p ac ices in aud p e en ion
and in es iga ion. Ambigui ies o gaps in egula ions can limi he au ho i y and scope o o ensic
accoun an s in conduc ing ho ough in es iga ion. They u he added ha na iga ing he legal amewo k
su ounding aud in es iga ions can be complex. Fo ensic accoun an s should ensu e ha hei
in es iga i e p ocedu es and e idence ga he ing comply wi h Nige ian laws and egula ions. Legal hu dles
can slow down he in es iga i e p ocedu e.
(4) The sho age o quali ied o ensic accoun an s in Nige ia is a no able challenge (Okoye, 2009).
Expe ise in o ensic accoun ing echniques and me hodologies is essen ial o e ec i e aud
in es iga ion (Bassey, 2018; Ogunode and Dada, 2022; Okoye, 2009). Add essing he skills gap h ough
aining and educa ion is c ucial o enhancing aud de ec ion and p e en ion.
(5) Mic o inance ins i u ions may s uggle wi h da a quali y and a ailabili y (Tucke , 2001). Incomple e
o inaccu a e eco ds can impede he in es iga ion p ocess. Addi ionally, some auds e s ake delibe a e
s eps o manipula e o des oy inancial da a, making i challenging o o ensic accoun an s o ace
audulen ac i i ies.
(6) While echnology can aid in aud de ec ion, i can also pose challenges (Chukwunedu and Okoye,
2011; Ikpe and Uwah, 2023). F auds e s o en adap o echnological ad ancemen s, becoming mo e
sophis ica ed in concealing hei ac i i ies. Keeping up wi h e ol ing aud schemes and
coun e measu es is a cons an challenge o o ensic accoun an s (Chukwunedu and Okoye, 2011;
K anache and Riley, 2019).
(7) Ob aining coope a ion om all s akeholde s, including employees, clien s, and law en o cemen
agencies, is essen ial in aud in es iga ions. Resis ance o lack o collabo a ion can hinde he p og ess
Eghe-Ikhu he e al.
122
o in es iga ions and limi he o ensic accoun an ’s access o c i ical in o ma ion (Skalak
e al
., 2011).
Cul u al ac o s and e hical conside a ions can impac aud in es iga ions. In some cases, indi iduals
may be hesi an o epo aud due o ea o e alia ion o cul u al no ms ha discou age whis leblowing
(Hwang
e al
., 2008). This can hinde he imely disco e y o aud schemes.
Despi e hese challenges and limi a ions, o ensic accoun ing emains an essen ial ool o add essing
aud in mic o inancing in Nige ia (Bassey, 2018; Ikpe and Uwah, 2023; K anache and Riley, 2019). To
mi iga e hese challenges, i is c ucial o mic o inance ins i u ions o in es in aining, echnology, and
in e nal con ols, and o egula o y bodies o es ablish clea guidelines and suppo e ec i e aud
in es iga ion p ac ices (Abubaka
e al
., 2015; Ahmadu
e al
., 2013). Addi ionally, os e ing a cul u e
o anspa ency and e hical beha iou can help add ess some o he cul u al and e hical ba ie s ha
o ensic accoun an s may encoun e in hei e o s o comba aud in he mic o inancing sec o .
F aud T iangle
Limi ed quali a i e esea ch gap exis s in unde s anding he impac o o ensic accoun ing on aud
de ec ion and p e en ion, especially in mic o inance ins i u ions (Kau
e al
., 2023; Fi mansyah
e al
.,
2024). Gi en his gap, he aud iangle, comp ising p essu e, oppo uni y, and a ionalisa ion, is a
alida ed model used o comp ehend he easons behind indi iduals’ audulen beha iou . The
amewo k’s selec ion helps esea che s in o ganising quali a i e insigh s, he eby ackling he
complexi ies o aud in mic o inance ins i u ions. The connec ion be ween dea h o quali a i e s udies
on in es iga ions in o aud and he adop ion o he aud iangle in his con ex is based on he need
o a obus , es ablished heo e ical amewo k o guide o ensic accoun ing esea ch.
In 1950, c iminologis Donald C essey disco e ed he aud iangle, consis ing o a p oblem no
sha ed, an oppo uni y capi alized on, and excuses used o jus i y hei ac ions, which has been used in
a ious s udies on aud (Home , 2020). The aud iangle, i s p oposed by C essey in 1950 and la e
e isi ed by Schuch e and Le i (2016), is a widely ecognized concep in aud examina ion and o ensic
accoun ing. The aud iangle model iden i ies h ee key elemen s: p essu e, oppo uni y, and
a ionalisa ion, which con ibu e o audulen beha io . P essu e e e s o he inancial o pe sonal
p essu e ha d i es an indi idual o commi aud, o en in luenced by ac o s such as inancial
di icul ies, addic ion, o pe sonal issues. The highe he p essu e, he highe he likelihood o someone
engaging in audulen ac i i ies. On he o he hand, oppo uni y e e s o he ci cums ances and access
ha enable someone o commi aud wi hou being de ec ed (Kassem and Higson, 2012). Weak in e nal
con ols, lack o o e sigh , and limi ed checks and balances inc ease aud oppo uni ies, inc easing he
likelihood o indi iduals commi ing such c imes. Finally, a ionaliza ion is he psychological aspec o
he aud iangle, in ol ing an indi idual’s capaci y o jus i y hei audulen ac ions. Ra ionaliza ion
In e na ional Jou nal o Managemen , Economics and Social Sciences
123
helps indi iduals econcile hei audulen beha io wi h hei pe sonal alues and e hics by p esen ing
he aud as empo a y, epayable, o ic imless. The aud iangle posi s ha a lack o p essu e,
oppo uni y, o a ionaliza ion can signi ican ly dec ease he likelihood o audulen ac i i ies wi hin an
o ganiza ion. F aud p e en ion s a egies aim o minimize oppo uni ies o aud while os e ing an
e hical cul u e ha discou ages a ionaliza ion.
METHODOLOGY
In his pape , we adop ed quali a i e esea ch me hod conside ing i s capabili y o cap u e he dep h,
complexi y and con ex o ou esea ch (Ri chie and Lewis, 2003). Quali a i e me hods a e being u ilized
by schola s o comp ehend and in e p e human expe iences, beha io s, and phenomena, p o iding
aluable insigh s o hei espec i e ields (O ms on
e al
., 2014; Ri chie and Lewis, 2003; Williams,
2007). Speci ically, he s udy u ilized a case s udy design o examine he aud de ec ion and p e en ion
s a egies employed by selec mic o inance ins i u ions in Nige ia. In pa icula , we used semi-s uc u ed
in e iew (Chang
e al
., 2020; McAlea ney, 2006), sui able o ge clea explana ion om pa icipan s
ec ui ed o he s udy. By conduc ing in e iews wi h mic o inance ins i u ions, he esea ch p o ided a
comp ehensi e unde s anding o how hese ins i u ions manage aud.
Popula ion and Sampling
We selec ed Mic o inance ins i u ions, mos ly posi ioned in Wes and Sou h S a e in Nige ia. The sample
included eigh een esponden s including o ensic accoun an s, cha e ed accoun an s, and in e nal
con ol pe sonnel om Mic o inance ins i u ions loca ed in Wes and Sou h S a e. The pa icipan s had
ex ensi e expe ience anging be ween one o o e i een yea s. Ou o he eigh een esponden s, ele en
we e males, and se en we e emales. Table 1 depic s a comp ehensi e p o ile o he pa icipan s.
A pu pose ul sample s a egy was u ilized o ge da a om pa icipan s. C eswell (2009) emphasized
ha an examine in en ionally selec s indi iduals and a speci ic loca ion o s udy he p ima y
phenomenon.
Da a Collec ion
The da a we e ob ained quali a i ely using semi-s uc u ed online in e iews wi h he esponden s o he
selec ed companies. The in e iew ques ions we e designed based on insigh s om he esea ch
ques ions and he heo e ical amewo k o he aud iangle, ocusing on i s h ee key componen s. The
ocus o he in e iew ques ions was based on he ole o o ensic accoun ing in aud de ec ion and
p e en ion. The main ques ions we e suppo ed h ough a se ies o open-ended and ollowed-up
ques ions. Responden s we e able o eely expand ques ions and p o ide unique and in e es ing con en
Eghe-Ikhu he e al.
130
hei e o s in de ec ing and p e en ing aud. Finally, manage s should os e coope a ion and
communica ion among depa men s o de ec and p e en aud, p omo ing openness and esponsibili y
o ensu e imely iden i ica ion and esolu ion o po en ial issues.
LIMITATIONS AND FUTURE DIRECTIONS
We acknowledge he limi a ions o ou esea ch. Fi s , we ocused on mic o inance ins i u ions in Nige ia.
Hence, ou indings canno be gene alized o all i ms in Nige ia. Secondly, he s udy o e looked he
e ol ing na u e o aud ac ics, he capaci ies o di e en ins i u ions, and po en ial challenges in
accessing comp ehensi e and imely da a. Finally, u he esea ch can explo e he use o o ensic
accoun ing in aud de ec ion and p e en ion, pa icula ly in de eloped coun ies.
We call o u he s udies o examine he e ec o o ensic accoun ing in aud de ec ion and
p e en ion by conside ing o he sec o s including he manu ac u ing. Fu he esea ch could add ess he
changing na u e o aud echniques by conduc ing a longi udinal s udy ha moni o s changes in aud
me hods o e ime, allowing o he disco e y o de eloping pa e ns and no el ac ics. Fu he mo e,
compa a i e s udies could be done o assess di e en ins i u ions’ capaci ies o de ec ing and
p e en ing aud, highligh ing bes p ac ices and a eas o imp o emen . To add ess he cons ain s o
accessing comp ehensi e and imely da a, esea che s could o m collabo a ions wi h ins i u ions o
eal- ime da a sha ing o de elop c ea i e da a collec ion me hods ha ensu e b oade and mo e cu en
da ase s, he eby inc easing he eliabili y and use ulness o he indings.
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Appendix-I
In e iew Ques ions
Sec ion 1: Fo ensic Accoun ing unde s anding
1. Could you explain you unde s anding o o ensic accoun ing and i s ole in he de ec ion and p e en ion o aud?
2. How does o ensic accoun ing con as om adi ional accoun ing p ac ices based on you expe ience wi hin
mic o inance ins i u ions in Nige ia?
3. How could you de ine he ele ance o o ensic accoun ing in mic o inance ins i u ions con ex in Nige ia?
Sec ion 2: P ac ices o F aud De ec ion and P e en ion in Mic o inance ins i u ions in Nige ia
4. Wha a e he ypes o audulen happenings ha a e mos p edominan in Nige ian mic o inance ins i u ions and wha
g oup o employees a e usually in ol ed?
5. How does you ins i u ion assess and managed aud isks?
6. Can you explain he p esen ools o me hods you ins i u ion used in de ec ing and p e en ing aud?
7. Ha e you i m had any ins ance o aud whe e o ensic accoun ing played a signi ican ole in esol ing he issue? Can
you elabo a e?
Sec ion 3: Fo ensic Accoun ing Techniques and Tools and challenges
8. How has you i m’s in e nal con ol been able o help in de ec ing aud?
9. Which o ensic accoun ing me hods a e mos commonly used in de ec ing aud wi hin you i m?
10. How do you hink he Nige ian o ensic accoun an s a e u ilizing echnology and da a analy ics o imp o e aud de ec ion
and in es iga ion wi hin mic o inance ins i u ions?
11. Is he e any exis ing speci ic so wa e o digi al ools ha you i m uses o o ensic accoun ing pu poses?
12. How could you assess he e ec i eness o hese ools in unco e ing and p e en ing audulen ac i i ies?
13. A e he e ba ie s, ei he egula o y o ope a ional, ha pose a limi a ion on he use o o ensic accoun ing in mic o inance
ins i u ions in Nige ia?
14. Wha is he kind o aining o capaci y building do you belie e will be necessa y o ad ance he use o o ensic accoun ing
o aud p e en ion in mic o inance ins i u ions?
15. Wha is he ole play by go e nmen egula ions and policies in he p omo ion o hinde ing o ensic accoun ing p ac ices
in you i m?
16. How can you ensu e e hical s anda ds a e being main ained in conduc ing o ensic accoun ing in es iga ions?
17. Wha ecommenda ions could you make on he u u e o echnology and he use o o ensic accoun ing in mic o inance
ins i u ions, how i is expec ed o e ol e in esponse o eme ging aud challenges and echnological ad ancemen in
Nige ia?
