International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue I, January 2020 | ISSN 2454–6186

Forensic Accounting and Firms Performance of Cement Companies in Nigeria: A Study of Cement Company of Northern Nigeria

Abdulsalam Nasiru, Kaoje (Ph.D)¹, Abubakar Sabo, Yabo(Ph.D)², Modibbo, Abubakar³, Abdulhadi, Nanafirdausi^4
1,4Department of Accounting, Usmanu Danfodiyo University, Sokoto, Nigeria
²Department of Business Administration, Usmanu Danfodiyo University, Sokoto, Nigeria
³Department of Accounting, Federal University, Birnin Kebbi, Nigeria

Abstract:- This paper assess forensic accounting and firms’ performance using return on asset, return on equity and net profit margin. The objectives of the paper is to determine the relationship between forensic accounting and firms’ performance. The paper adopted the survey approach. Population consist of all the administration staff of Cement Company of Northern Nigeria. Respondents were chosen using the purposive sampling method. Primary data were used to elicit quantitative data from respondents using a structured questionnaire. The questionnaires were distributed to a sample size of thirty four respondents which were correctly filled and returned. Multiple Regression Analysis was used with the aid of Statistical Packages for Social Sciences (SPSS) to analyze and determine the relationship between forensic accounting and firms’ performance (ROA, ROE and NPM). The findings of the paper revealed that forensic accounting is positively and significantly related to return on asset, return on equity and net profit margin. The correlation coefficient (r) in the respective hypotheses indicated strong positive relationship between the variables. Also, the coefficient of determination (r2) in all the hypotheses revealed that more than 79% of variation in forensic accounting was explained by Return on Asset, Return on Equity and Net Profit Margin. The paper recommends that the Institute of Chartered Accountants of Nigeria and Association of National Accountants of Nigeria should encourage formalization and specialization in the field forensic accounting. In addition, government should develop interest in forensic accounting for monitoring and investigation of suspected corruption cases. The paper further recommends that government should encourage the practice of forensic accounting by providing adequate training and resources to forensic accountants such that they become an expert in their particular field of expertise.

Keywords: Forensic Accounting, Firms’ Performance and Multiple Regression.

I. INTRODUCTION

Forensic accounting is a specialized area of accounting that describes engagement that which emanates from actual or anticipated disputes or litigation. Forensic accounting, also called investigative accounting or fraud audit or forensic audit, is a merger of forensic science and accounting.