FORENSIC ACCOUNTING AND PREVENTION OF FINANCIAL CRIMES IN NIGERIA: A STUDY OF MINISTRIES OF FINANCE IN STATES IN SOUTH WEST, NIGERIA

Abstract

This study investigated the contribution of forensic accounting practices to the prevention of financial crimes in the Ministries of Finance of in selected states in South West, Nigeria, namely Lagos, Ogun, and Oyo States. A cross sectional survey design was employed for the study. The target population consisted of 1,108 personnel drawn from the Ministries of Finance in the three selected states. Using the Taro Yamane sampling formula, a sample size of 294 respondents was determined, while 219 correctly completed questionnaires were retrieved and used for the analysis. Data were obtained through a structured questionnaire and analyzed using descriptive statistics and multiple regression analysis with the aid of the Statistical Package for the Social Sciences (SPSS). The results indicated that data mining and transactional analytics significantly enhanced the detection and prevention of financial crimes by improving transaction monitoring and identifying suspicious financial activities. The study concluded that effective adoption of forensic accounting practices plays a significant role in reducing financial crimes and improving public sector financial management. It recommended greater investment in forensic accounting technologies, improved documentation and monitoring systems, and increased transparency in financial processes to strengthen accountability and safeguard public resources.