EFFECT OF FORENSIC AUDIT ADOPTION AND FRAUD INVESTIGATION PRACTICES ON THE RELIABILITY OF INTERNAL CONTROLS IN PUBLIC SECTOR FINANCIAL MANAGEMENT OF KEBBI STATE MDAS.

Abstract

This study investigates the effect of Forensic Audit adoption and fraud investigation practices on internal control reliability within Public sector financial management of MDAs in Kebbi State, Nigeria. The research utilized a quantitative design with data collected from respondents comprising auditors, accountants, and finance officers. Descriptive statistics, correlation, and multiple regression analyses were conducted using SPSS. Findings revealed a high level of Forensic Audit adoption (M = 4.12) and strong effectiveness in fraud investigation practices, particularly in reporting and documentation (M = 4.25). Pearson's correlation results indicated significant positive relationships between Forensic Audit adoption, evidence gathering, interview and interrogation, reporting and documentation, and internal control reliability (r values ranging from 0.674 to 0.762, p < 0.01). The regression model further showed that Forensic Audit adoption and fraud investigation practices jointly accounted for 71.3% of the variance in internal control reliability (Adjusted R2 = 0.713, F = 173.248, p < 0.01). Individually, Forensic Audit adoption (β = 0.358, p < 0.01) and reporting and documentation (β = 0.341, p < 0.01) exerted the strongest predictive influence on internal control reliability. These results suggest that effective integration of forensic accounting techniques, especially systematic documentation and reporting, substantially enhances transparency, accountability, and the dependability of internal controls in the public sector. The study recommends strengthening forensic audit frameworks, continuous professional training, and the institutionalization of forensic accounting practices as part of financial management reforms in Nigeria.

Keywords: Forensic Audit adoption, Fraud Investigation, Evidence Gathering, Reporting and Documentation, Internal Control Reliability,