MODERATING EFFECT OF TRAINING ON THE RELATIONSHIP BETWEEN FORENSIC ACCOUNTING PRACTICE SKILLS AND TAX FRAUD DETECTION IN NIGERIA FEDERAL INLAND REVENUE SERVICE
DOI:
https://doi.org/10.65922/hq5bmk80Abstract
This study investigates the moderating effect of training on the relationship between forensic accounting skills and tax fraud detection within Nigeria's Federal Inland Revenue Service (FIRS). Tax fraud, a deliberate act of falsifying financial information to evade taxes, continues to undermine public revenue generation globally, with Nigeria facing significant challenges due to issues such as collusion, inadequate forensic skills, and outdated systems. The research explores the impact of technological proficiency, communication skills, and training on enhancing fraud detection capabilities. The study posits two main research questions: the extent of technological proficiency's effect on tax fraud detection and the role of communication skills in fraud detection at FIRS. Through a survey of 190 FIRS employees, the study employs multiple regression analysis to assess the relationship between forensic accounting skills and tax fraud detection, examining the moderating role of training. The results indicate that both technological proficiency and communication skills positively impact fraud detection, with training playing a critical moderating role. Specifically, training reduces the strength of the relationship between technological proficiency and fraud detection but still enhances the overall impact. Additionally, communication skills, while critical, become less influential at higher levels of training. The findings highlight the importance of continuous skill development, particularly in forensic accounting practices, and suggest that a combination of technical and soft skills training is essential to strengthen tax fraud detection systems at FIRS. Recommendations include investing in advanced technological tools and regular communication skills workshops to improve fraud detection outcomes.
Keywords: Tax fraud detection, forensic accounting, technological proficiency, communication skills
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