Forensic accounting techniques and fraud control in the Nigerian public sector: The moderating role of financial inclusion

Abstract

Purpose: This study investigated the effect of forensic accounting techniques on fraud control in the Nigerian public sector and examined whether financial inclusion strengthens the relationship between forensic accounting techniques and fraud control. Specifically, the study evaluated the influence of data mining, ratio analysis, trend analysis, and the net worth method on fraud control while assessing the moderating role of financial inclusion. Methodology: A quantitative survey research design was adopted. Data were collected from 296 respondents drawn from federal and state Ministries, Departments, and Agencies (MDAs) in Calabar, Cross River State. A structured questionnaire was used for data collection, while Structural Equation Modelling (SEM) was employed for data analysis. Results and Conclusion: The findings revealed that data mining and trend analysis have significant positive effects on fraud control, indicating their effectiveness in identifying irregularities and fraudulent practices in the public sector. Conversely, ratio analysis and the net worth method showed significant negative relationships with fraud control, suggesting possible challenges in their application. The study further found that financial inclusion significantly moderates the relationship between forensic accounting techniques and fraud control by enhancing transparency, accountability, and financial traceability. These findings provide empirical support for the Vulnerable Group Theory of financial inclusion. Implication of Findings: The study contributes to forensic accounting literature by providing evidence from the Nigerian public sector and highlighting the importance of financial inclusion in strengthening fraud control. It recommends the institutionalization of forensic accounting practices and the expansion of financial inclusion initiatives to improve fraud detection and prevention.