Corruption: Economist Canvasses Forensic Accounting

An Economist, Mr Deji Okubanjo, last Tuesday called for the adoption of forensic accounting and auditing in tackling financial crimes in both the private and public sectors of the economy.

Okubanjo told newsmen in Omu-Aran, Kwara, that the call became necessary due to the failure of audit systems in curbing large scale financial irregularities.

The expert described forensic accounting and auditing as forms of investigation and enquiries that had legal implications in examining the legitimacy of an occurrence based on evidence.

Okubanjo, who is also the Director of Financial Services, Landmark University in Omu-Aran, said that audit system had failed to prevent and reduce severe financial irregularities and should be replaced.

“The need for forensic audit and accounting arises because internal and external audit have failed to figure out certain severe malpractice and falsifications in the managerial system,” he said.

Okubanjo highlighted factors militating against the audit systems to include non adherence to compulsory statutory audit rotation and non use of merit in appointing statutory auditors.

Other factors are internal audit and audit committees’ failure to throw more light on the different facts and other hidden aspects of corporate fraud.

He said that while the internal auditors might be able to detect fraud, the absence of a whistle blowing system would make it almost impossible to report and take proper action in time.

The expert said that corruption in third world countries was becoming alarming and was not only crumbling the economy, but affecting the citizens’ standard of living and their image.

“For this reason the services of forensic accountants and auditors are more required in developing economies and more especially in the public sector.

“The Institute of Chartered Accountants and regulatory bodies in all developing countries should encourage formalisation and specialisation in the field of forensic accounting and auditing,” he said.

Okubanjo singled out the Economic and Financial Crime Commission as the only body in the country that was intensively fighting crime through forensic investigation.

“Through this, the commission’s high profile cases are thoroughly investigated,” he said.

Okubanjo also suggested the introduction of forensic crime investigation in the school syllabus to catch young brains who might be interested in pursuing it as a career.