The Role of Forensic Accounting in Investigating Environmental Fraud on Corporate Financial Reporting Quality in Nigeria
ALI-MOMOH Betty Oluwayemisi.
Department of Accounting, Faculty of Management Sciences, Federal University Oye Ekiti, Ekiti State Nigeria.
DADA Olabisi Augustine *
Department of Accounting, Faculty of Management Sciences, Federal University Oye Ekiti, Ekiti State Nigeria.
OLAIYA Felix Ojo.
Department of Accounting, Faculty of Management Sciences, Federal University Oye Ekiti, Ekiti State Nigeria.
AJAYI Dupe Eunice.
Department of Accounting, Faculty of Management Sciences, Federal University Oye Ekiti, Ekiti State Nigeria.
OJO Isaac Ayodele.
Department of Accounting, Faculty of Management Sciences, Federal University Oye Ekiti, Ekiti State Nigeria.
OSO Opeyemi John.
Department of Accounting, Faculty of Management Sciences, Federal University Oye Ekiti, Ekiti State Nigeria.
LONGE Kehinde Tosin.
Department of Accounting, Faculty of Management Sciences, Federal University Oye Ekiti, Ekiti State Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study examines the forensically strategic role of forensic accounting in combating environmental fraud and enhancing quality corporate financial reporting. By employing a systematic survey of 30 purposively chosen professional accountants in Afe Babalola University Ado Ekiti, Nigeria, this study revealed compelling findings. Through regression analysis, findings confirm that fraud detection has a significant, positive, and strong influence on quality financial reporting (β = 0.887, p < 0.001), validating its role in promoting transparency and credibility. However, fraud prevention policies have a weak and insignificant influence (β = 0.019, p = 0.891), indicating the need to modify the strategic direction. The study promotes the proactive use of forensic accounting methods during audits and a re-evaluation of current prevention measures, in order to effectively tackle environmental fraud and improve reporting standards. The research offers a critical perspective on how forensic accounting can be used to rebuild corporate integrity and restore the public's confidence.
Keywords: Forensic accounting, environmental fraud, corporate financial reporting, improve reporting standards