Effects Of Forensic Accounting on The Mitigation of Fraudulent Practices Amongst Universities in Kenya

Abstract

This study sought to evaluate the effect of forensic accounting in mitigating fraudulent practices in universities in Kenya. In achieving this objective, it sought to find out the extent of forensic accounting application and the effect it has had in mitigation of fraud. The study adopted a descriptive survey design , where respondents was sought from the accounting, finance and internal audit departments of all 39 chartered universities in order to present the researcher with sufficient information on the use of forensic accounting in the universities and its effect on curbing fraud. Using questionnaires, cross-sectional data was collected and analyzed using both descriptive and inferential statistics. Correlation was used to portray the relationship between forensic accounting and fraud mitigation. The study aimed at scrutinizing the existing universities in a bid to ascertain whether there is sufficient knowledge of forensic accounting and if it has an effect on the attempts by these institutions to curb fraudulent activities. The researcher presented the results in the form of a descriptive conclusion, tables and charts and suggests recommendations that would support reduction of fraudulent practices amongst universities in Kenya. The study found a relationship between fraud investigation tool and mitigation of fraudulent practices in universities in Kenya. Forensic accountancy was found to assist in performing electronic evidence discovery, fraud risk assessment, examination of financial and source documents and to probe suspect financial performance many institutions have not embraced the forensic investigation systems and departments hence still facing fraud attacks and loss of money. The study also found a relationship between auditing skills and mitigation of fraudulent practices in universities in Kenya. The study recommended that more investigative tool should embrace by institution to mitigate on fraudulent activities affecting various stakeholders. The study also recommends that institutions should come up with forensic departments to improve on productivity. Based on the study findings, the researcher suggested the following: A similar study to be carried out among other institution of higher learning. It was valuable to do similar studies in other public and private institutions and further studies especially on factors influencing adoption of Forensic accountancy in public and private institutions.