The Role of Forensic Accounting on Combating Fraud in Ethiopian Banking Industry
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Date
2022-06
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A.A.U
Abstract
This study assessed how forensic accounting helps in mitigating frauds in the Ethiopian Banking
Industry. It aimed at identifying the types of frauds, causes and evaluating methods of forensic
accounting applied and practiced. The study used a survey method as research design. Mixed
type of research was applied by integrating qualitative and quantitative data to provide a
complete image. The population of the study comprised 7 banks out of the 20 registered
commercial banks which were established before 2000 G.C. Convenience sampling technique
was used to select respondents from the population. Primary and secondary data sources are
used to collect data from the respective departments. Sources of data comprised both interview
and questionnaire. Primary data collected from respondents were analyzed using SPSS. Analysis
and discussions comprise responses from the questionnaire and interview questions administered
to the selected 7 banks along with the guideline by NBE. The findings of this study showed that
forensic accounting methods and techniques applied by banks do contribute to detect, prevent
and assist the investigative process of actual fraud cases. There are also factors causing to
defect the role of forensic accounting techniques to be identified as weaknesses. Loose practice
of internal control policies and procedures, inconsistent training and lack of practical deterring
measures are some. Therefore, it is recommended that tight controls are practiced, consistent
training is provided and strict punitive measures are applied to mitigate bank frauds.
Description
Keywords
Forensic Accounting, Fraud, Convenience, Consistent, Strict, Mitigate